The Insurance Institute for Highway Safety (IIHS) tested Tesla Autopilot safeguards and found that drivers are pretty quick to adapt to the windows of opportunity the suite gives after warning them to pay attention.
The IIHS study sought to determine whether partially automated driving systems and their safeguards increase driver attentiveness. With the rollout of more advanced driver assistance systems (ADAS) and semi-autonomous driving functionalities, the goal is to increase safety.
However, these suites still require the driver to pay attention and be aware of any potential opportunity to take over if needed. These driving systems and features are designed to increase safety but still require the driver’s full attention, hence their semi-autonomous label.
Credit: Tesla
For the study, the IIHS tested both Tesla Autopilot safeguards and those available in Volvo’s Pilot Assist.
The study gave 14 drivers a month with a 2020 Tesla Model 3 and required them to travel on Autopilot, when available, over one month. The IIHS wanted to see how drivers behaved leading up to, during, and after attention reminders prompted by a lack of focus on their end.
The Autopilot study found that drivers could learn safeguard sequences and identify “windows of opportunity” to perform non-driving-related tasks. These vehicles still utilized an Autopilot nag and a torque sensor to monitor whether the driver was paying attention. Failure to keep hands on the steering wheel would result in attention reminders.
Failure to change after the reminders would result in suspension of the Autopilot system, commonly referred to as “Autopilot jail.”
The study found:
“In total, the volunteers drove a little more than 12,000 miles with Autopilot engaged. During that time, they triggered 3,858 attention-related warnings from the partial automation system. About half of those alerts occurred when they had at least one hand on the steering wheel but were apparently not moving it enough to satisfy the torque sensor.”
Most warnings did not go past the initial reminder, and only 72 instances resulted in the driver not responding fast enough to prevent the alerts from escalating.
The study found that while initial warnings increased by 26 percent over the first four weeks, showing drivers were prone to expect it, escalations fell by 64 percent, meaning they did not allow the system to continue warning them.
However, this does not mean that non-driving secondary activities stopped after the first warning. Instead, the study showed something interesting:
“The researchers found that the drivers did nondriving secondary activities, looked away from the road, and had both hands off the wheel more often during the alerts and in the 10 seconds before and after them as they learned how the attention reminders worked. The longer they used the system, the less time it took them to take their hands off the wheel again once the alerts stopped.”
The IIHS admits that the safety impact of the change is hard to measure. While the agency noted that some research shows the longer a driver allows their attention to wander, the more likely they will be involved in an accident, the study also said that “even short lapses of attention become so frequent that the periods of supposed engagement between them have little value.”
The study also said the safeguards can be beneficial to behavior immediately and in the longer term, and other patterns showed potentially unintended consequences:
“The current study has shown that driver interactions with partial automation are dynamic. Some of the changes we observed indicate that system safeguards can beneficially shape behavior both immediately and in the longer term, whereas other patterns revealed potentially unintended consequences. It is important to note that these findings are likely not unique to Tesla’s Autopilot, as many systems on the market have overtly similar safeguard designs. As such, some observations from this study maybe relevant to other driver assistance technology that still requires the driver to be engaged in the driving task.”
IIHS Senior Research Scientist Alexandra Mueller, who led the study, said:
“These results show that escalating, multimodal attention reminders are very effective in getting drivers to change their behavior. However, better safeguards are needed to ensure that the behavior change actually translates to more attentive driving.”
While this study provides evidence that perhaps better safeguards are needed, it is important to note that Tesla has upgraded the in-cabin camera to monitor driver attentiveness.
Tesla activates cabin-facing camera in bid to improve vehicle safety
Additionally, many cars are on the road without these driver assistance and safety features.
Distracted driving is going to occur whether a vehicle is equipped with modern technology or not.
Tesla and other automakers have brought their newest vehicles up to speed in the fight against distracted driving, and perhaps this study showed that warnings could and should come at varying rates to prevent anticipation from drivers.
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Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
