News
Level 2 systems like Tesla Autopilot can improve drivers’ attentiveness: IIHS study
The Insurance Institute for Highway Safety (IIHS) recently published the results of a rather unique real-world driver attentiveness test. Using a 2019 Mercedes-Benz C300 equipped with a Level 2 Advanced Driver Assistance System (ADAS) and a giant pink teddy bear dressed in a yellow high-visibility jacket, the agency was able to roughly determine if systems like GM’s Super Cruise and Tesla’s Autopilot make drivers less attentive on the road.
The participants of the study included both drivers who were familiar with Level 2 driver-assist systems and drivers who had little to no experience with ADAS. The IIHS tasked those familiar with Level 2 systems to drive with the Mercedes-Benz C300’s ADAS activated. A group of drivers unfamiliar with ADAS was also tasked to drive with the system engaged. Lastly, a group of drivers who were unfamiliar with the vehicle’s Level 2 system was tasked to drive without the advanced driver-assist feature activated.
To test the drivers’ situational awareness, the IIHS had an SUV with a giant pink teddy bear strapped to its back pass the Mercedes-Benz C300 three times as the participants drove over a stretch of Interstate 70 in Maryland for about an hour. Each time, the SUV with the massive stuffed bear stayed in front of the drivers for about 30 seconds. Researchers then measured the participants’ reactions after their driving session, while asking if they saw anything odd during their hour-long drive.
Interestingly enough, nearly all of the drivers who were experienced with Level 2 systems noticed the giant pink bear. The same group also identified the number of times the bear overtook the C300 during the hour-long test. Drivers who were inexperienced with Level 2 systems didn’t perform as well, with a good number of inexperienced drivers who used the C300’s ADAS failing to remember the giant pink teddy bear at all.
“Our data suggest that Level 2 driving automation has the potential to improve a driver’s situational awareness (SA) once he or she is familiar with the technology, although it does not guarantee it. Unfamiliar drivers, however, appear to have even more difficulty maintaining SA when using the system than when driving without it. On average, participants who were familiar with Level 2 systems showed the highest degree of SA about the bear when using the system, unfamiliar participants who drove with the system off had moderate SA, and unfamiliar participants who drove with the system on demonstrated the lowest SA,” the IIHS wrote.
Videos from inside the C300 showed that the drivers who correctly identified the giant stuffed bear actually spent more time scanning the road ahead of them. These drivers, particularly those familiar with Level 2 systems, even tended to look out of the car’s side windows. On the other hand, those who missed the bear spent a considerable amount of time just focusing on the road straight ahead. Drivers who failed to spot the bear even once spent considerable time looking at various aspects of the C300’s dash.
Considering the results of the IIHS’ study, it appears that some experience with Level 2 systems would be best for drivers before they are allowed access to more advanced driver-assist systems such as Tesla’s Full Self-Driving Beta, which is poised to be rolled out to a greater number of electric car owners in a couple of weeks. Situational awareness, after all, is critical when driving, and having drivers nervously fiddling around their vehicles’ features while operating a Level 2 system may present some risks. That being said, the IIHS’ results do go in line with one of Elon Musk’s more notable points–systems like Autopilot could actually perform as a formidable safety feature, provided that they are used responsibly and properly, of course.
The IIHS’ situational awareness study could be accessed below.
IIHS Level 2 Autonomy Report by Simon Alvarez on Scribd
Don’t hesitate to contact us for news tips. Just send a message to tips@teslarati.com to give us a heads up.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s Robotaxi dreams just took a massive step toward reality
The Tesla and SpaceX merger everyone is talking about is quietly building
