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Tesla Autopilot twists and turns through complex Sin City construction zone on its own
The owner of a Tesla Model S released footage of his electric sedan seamlessly navigating on Autopilot through the sharp and narrow twists and turns of a construction zone.
Model S owner Fred Hassen was traveling on South Las Vegas Boulevard in the “Sin City” while using the vehicle’s Navigate on Autopilot feature as part of the Full-Self Driving suite. The Model S car managed to recognize the confusing lane shifts and road changes and navigate through the cones and safety barrels that were set up by local construction crews. Hassen seemed pleased by his car’s flawless navigation through the make-shift lanes, as can be heard in his video.
The appearance of traffic cones and traffic light indicators on the Model S’ instrument cluster suggests that the vehicle is equipped with Tesla’s latest Hardware 3 and capable of responding to red traffic lights and stop signs, including automatically stopping.
Autopilot progress in clearly marked construction zones is mighty impressive https://t.co/tb1tsuRQaD
— TREV PAGE (@Model3Owners) April 23, 2020
Navigate on Autopilot is one of the most sophisticated driver-assistance features in the automotive industry today. The suite is capable of performing lane changes, navigating through on and off-ramps, and helping drivers make their way through confusing construction zones. The development of Tesla’s software for its self-driving features helps the company work toward a “feature complete” Full Self-Driving suite, which aims to revolutionize the act of driving for every owner in the world.
Tesla’s Artificial Intelligence and Autopilot systems were broken down by Andrej Karpathy, Director of the company’s AI team. Karpathy explained that Tesla’s use of vehicle cameras and artificial intelligence trains its neural network to help cars respond to road conditions safely and accurately. Tesla’s fleet of 1,000,000 vehicles uses “raw images to perform semantic segmentation, object detection, and monocular depth estimation,” according to its website. These images are then used as data to improve the safety of Autopilot.
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The data compiled by the fleet of Tesla vehicles is critical to Tesla’s teams who determine improvements that need to be made within the company’s self-driving software. Tesla vehicles likely travel through construction zones every day, but the performance of the cars continues to improve through its continuously-learning Neural Network.
In the past, a Tesla hacker known as “green” has showed Tesla Autopilot’s thought process when navigating through construction zones.
and finally a bit of construction zone (this is the only one of the set where AP is actually on), nothing groundbreaking since it was widely reported already long ago, but still interesting to see it "from the inside": pic.twitter.com/TmGkqhGPQz
— green (@greentheonly) November 7, 2019
The technology seems to recognize cones as the guidance point for the lane, forgetting about painted “on-road” lines when construction zones are concerned. The car understands that the standard path of travel is obsolete because of construction. Autopilot instead uses the cones lined up on both sides of the lane as the new guidance markers for travel. This video is from a previous version of firmware, so the program has improved since then as more data has entered the Neural Network.
Tesla initial plans were to release the “feature complete” FSD suite by the end of 2019, but the program was not ready for a full release. After the company release Stop Sign and Traffic Light recognition in mid-April, all that is left for Tesla to unveil is city driving. As the cars seem to be navigating through tricky construction zones with relative ease, city street driving could roll out soon.
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
