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Tesla Autopilot and artificial intelligence: The unfair advantage
Serial tech entrepreneur and Tesla CEO Elon Musk has had a longstanding fear of artificial intelligence, but his company’s investments in artificial intelligence have been noted as an attempt to keep track of developments in the field of AI. In an interview for Vanity Fair in April 2017, he outright expressed his concerns with AI and claimed that one of the reasons for the development of SpaceX was that it could be an interplanetary escape route for humanity if artificial intelligence goes rogue. However, even Musk realizes the importance of AI in real-world applications, specifically for self-driving cars. At the end of June, Musk hired Andrej Karpathy as the new Director of Artificial Intelligence at Tesla, and MIT Technology Review claims it is the start of a plan to rethink automated driving at Tesla.
Karpathy comes from OpenAI, a non-profit company founded by Musk that focuses on “discovering and enacting the path to safe artificial general intelligence.” Afterwards, he moved on to intern at DeepMind, a place that spotlighted reinforcement learning with AI. Karpathy’s previous research focuses are on image understanding and recognition, which directly translates into applying proven image recognitions algorithms in Tesla’s Autopilot.
Recently, the popular question of morality was brought up in context to AI learning in Autopilot cars. It’s very interesting to consider how to teach technology to respond to an innately human moral problem. The Moral Machine, hosted by Massachusetts Institute of Technology, is a platform built to “gather human perspectives on moral decisions made by machine intelligence, such as self-driving cars.” It questions how the machine would act in human decisions such as whether to crash the driver or keep driving into a pedestrian that is crossing the street where there are no traffic regulators. How exactly do you teach a logical machine the mechanisms of ethical decision-making?
Although Musk and Tesla are the leaders in the self-driving field, a number of other companies are also entering into the competition sphere. Google, Uber, and Intel’s Mobileye have all been considering the application of reinforcement learning in the context of self-driving cars. Uber, Waymo, GM (Cruise Automation), Mobileye (camera supplier), Mercedes and Velodyne (LiDAR Supplier) could be potential competitors in the realm of self-driving vehicles. However, most of the technology does not encompass full self-driving, which is Musk’s aim. While other companies are investing heavily in autonomous fleets, Tesla far outpaces them in terms of data collection and release of finished product.
What are the differentiators for Tesla in the growing field of AI directed driverless cars?
Historically, Musk has focused on “narrow AI” which can enable the car to make decisions without driver interference. The vehicles would increasingly rely on radar as well as ultrasonic technology for sensing and data-gathering to form the basis for Tesla’s Autopilot algorithms. A technology that isn’t derived from LiDAR, the combination of radar and camera system said to outperform LiDAR especially in adverse weather conditions such as fog.
With the introduction of Autopilot 2.0 and Tesla’s “Vision” system, and billions of miles real-world driving data collected by Model S and Model X drivers, Tesla continues to create a detailed 3D map of the world that has increasingly finer resolution as more vehicles are purchased, delivered and placed onto roadways. The addition of GPS allows Tesla to put together a visual driving map for AI vehicles to follow, paving the path for newer and more advanced vehicles.
The addition of Karpathy will be a notable asset for Tesla’s Autopilot team. In specific, the team will be able to apply Karpathy’s deep knowledge of reinforcement learning systems. Reinforcement learning for AI is similar to teaching animals via repetition of a behavior until a positive outcome is yielded. This type of machine learning will allow Tesla Autopilot to navigate complex and challenging scenarios. For example, AI will allow cars to determine in real-time how to navigate a four-way stop, a busy intersection or other difficult situations present on city streets. By making cars smarter with the way they navigate drivers, Tesla will put itself ahead of the curve with a fully-thinking, fully self-driving car.
Tesla is expected to demonstrate a fully autonomous cross-country drive from California to New York by the end of this year as a showcase for its upcoming Full Self-driving Capability. If you’re buying a Tesla Model 3, or an existing Model S or Model X owner, just know that you’re contributing to a self-driving future, mile by mile.
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Even Tesla China is feeling the Optimus V3 fever
As per Tesla China, Optimus V3 is “about to be unveiled.”
Even Tesla China seems to have caught the Optimus V3 fever, with the electric vehicle maker teasing the impending arrival of the humanoid robot on its official Weibo account.
As per Tesla China, Optimus V3 is “about to be unveiled.”
Tesla China hypes up Optimus V3
Tesla China noted on its Weibo post that Optimus V3 is redesigned from first principles and is capable of learning new tasks by observing human behavior. The company has stated that it is targeting annual production capacity of up to one million humanoid robots once manufacturing scales.
During the Q4 and FY 2025 earnings call, CEO Elon Musk stated that Tesla will wind down Model S and Model X production to free up factory space for the pilot production line of Optimus V3.
Musk later noted that Giga Texas should have a significantly larger Optimus line, though that will produce Optimus V4. He also made it a point to set expectations with Optimus’ production ramp, stating that the “normal S curve of manufacturing ramp will be longer for Optimus.”
Tesla China’s potential role
Tesla’s decision to announce the Optimus update on Weibo highlights the importance of the humanoid robot in the company’s global operations. Giga Shanghai is already Tesla’s largest manufacturing hub by volume, and Musk has repeatedly described China’s manufacturers as Tesla’s most legitimate competitors.
While Tesla has not confirmed where Optimus V3 will be produced or deployed first, the scale and efficiency of Gigafactory Shanghai make it a plausible candidate for future humanoid robot manufacturing or in-factory deployment. Musk has also suggested that Optimus could become available for public purchase as early as 2027, as noted in a CNEV Post report.
“It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP. It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does,” Musk said during the earnings call.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
Elon Musk
SpaceX-xAI merger discussions in advanced stage: report
The update was initially reported by Bloomberg News, which cited people reportedly familiar with the matter.
SpaceX is reportedly in advanced discussions to merge with artificial intelligence startup xAI. The talks could reportedly result in an agreement as soon as this week, though discussions remain ongoing.
The update was initially reported by Bloomberg News, which cited people reportedly familiar with the matter.
SpaceX and xAI advanced merger talks
SpaceX and xAI have reportedly informed some investors about plans to potentially combine the two privately held companies, Bloomberg’s sources claimed. Representatives for both companies did not immediately respond to requests for comment.
A merger would unite two of the world’s largest private firms. xAI raised capital at a valuation of about $200 billion in September, while SpaceX was preparing a share sale late last year that valued the rocket company at roughly $800 billion.
If completed, the merger would bring together SpaceX’s launch and satellite infrastructure with xAI’s computing and model development. This could pave the way for Musk’s vision of deploying data centers in orbit to support large-scale AI workloads.
Musk’s broader consolidation efforts
Elon Musk has increasingly linked his companies around autonomy, AI, and space-based infrastructure. SpaceX is seeking regulatory approval to launch up to one million satellites as part of its long-term plans, as per a recent filing. Such a scale could support space-based computing concepts.
SpaceX has also discussed the feasibility of a potential tie-up with electric vehicle maker Tesla, Bloomberg previously reported. SpaceX has reportedly been preparing for a possible initial public offering (IPO) as well, which could value the company at up to $1.5 trillion. No timeline for SpaceX’s reported IPO plans have been announced yet, however.
Even Tesla China is feeling the Optimus V3 fever
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
