News
Tesla Autopilot veterans launch company to accelerate self-driving development
After working on Tesla’s Autopilot team for 2.5 years, Andrew Kouri and Erik Reed decided to start their own self-driving, AI-based company rightfully named lvl5. Together with iRobot engineer George Tal, lvl5 aims to develop advanced vision software and HD maps for self-driving cars.
Founded in 2016, lvl5 was incubated at renown Silicon Valley incubator Y Combinator and later raised $2 million in seed funding from investor Paul Buchheit, who’s a partner at Y Combinator and creator of Gmail, and Max Altman’s 9Point Ventures.
In just 3 months, lvl5 racked up almost 500,000 miles of US roadway coverage with Payver. (Photo: lvl5)
“Working with lvl5’s founders while they were at Y Combinator, it was clear they have unmatched expertise in computer vision, which is the secret sauce of their solution,” said Buchheit. “I have no doubt this is the team to make self-driving a reality in the near term.”
At the center of lvl5’s technology is their computer vision algorithms. Founder and CTO George Tall previously specialized in computer vision technology at iRobot. In addition to Tall’s experience at iRobot, Kouri and Reed’s experience at Tesla undoubtedly left them with unparalleled expertise in computer vision.
Instead of turning to expensive LiDAR technology, lvl5’s computer vision analyzes its environment for stoplights, signs, potholes, and other objects. The system can be accurate to 10cm, a notable measure considering it’s derived from simple cameras and smartphones. In comparison, LiDAR systems can cost over $80,000 but are accurate to 3cm.
-
- Each purple trace through the intersection contributes to building the 3D map from a 2D image. For each frame, lvl5’s computer vision technology computes the position of the vehicle relative to other objects in the intersection and create a point cloud that resembles the output from LiDAR. Each white sideways “pyramid” represents the location of a captured frame in the video trace. (Photo: lvl5)
-
- This image is taken from one of lvl5’s neural nets, which is designed to draw a box around the position of traffic lights in an image. (Photo: lvl5)
-
- With only two trips through this intersection, lvl5 can start to extract semantic features such as a stop sign. (Photo: lvl5)
-
- The three founders of lvl5 in front of their SF home. Left to right: Erik Reed, Andrew Kouri, George Tall (Photo: Lvl5)
So how will lvl5 map roadways in the world using their computer vision technology? Smartphones. Well, for now at least. The company has released an app called Payver that allows anyone’s smartphone to collect data while driving and get paid between $.01-$.05 per mile, depending on a number of factors. Users of the app place their phone in a mount on their dashboard and let the app gather driving data.
The data is sent to lvl5’s central hub and processed by their computer vision technology. “Lvl5 is solving one of the biggest obstacles to widespread availability of self-driving technology,” said Max Altman, one of lvl5’s seed round investors and partner at 9Point Ventures. “Without accurate and efficient HD mapping, as well as the computer vision software that enables it, self-driving vehicles will take much longer to reach mass-market. This will delay everything from safer roads to efficient delivery services.”
GIF: lvl5
“We have to make self-driving available worldwide – not just in California,” Co-Founder and CEO Andrew Kouri said in a company statement. “Our approach, which combines computer vision software, crowdsourcing and widely available, affordable hardware, means our technology is accessible and will make self-driving a reality today, rather than five years from now.”
The company has already established pilot programs with major automakers and both Uber and Lyft. Companies will pay lvl5 an initial fee to use the maps, along with a monthly subscription to keep the maps continuously updated. “Through its OEM-agnostic approach, lvl5 will be able to collect significant amounts of mapping data from millions of cars in order to scale the technology for the benefit of drivers and pedestrians around the world,” the company’s press release states.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
News
Tesla Model Y L is gaining momentum in China’s premium segment
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla’s domestic sales in China held steady in November with around 73,000 units delivered, but a closer look at the Model Y L’s numbers hints at an emerging shift towards pricier variants that could very well be boosting average selling prices and margins.
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla China’s November domestic numbers
Data from the a Passenger Car Association (CPCA) indicated that Tesla China saw domestic deliveries of about 73,000 vehicles in November 2025. This number included 34,000 standard Model Y units, 26,000 Model 3 units, and 13,000 Model Y L units, as per industry watchers.
This means that the Model Y L accounted for roughly 27% of Tesla China’s total Model Y sales, despite the variant carrying a ~28% premium over the base RWD Model Y that is estimated to have dominated last year’s mix.
As per industry watcher @TSLAFanMtl, this suggests that Tesla China’s sales have moved towards more premium variants this year. Thus, direct year-over-year sales comparisons might miss the bigger picture. This is true even for the regular Model Y, as another premium trim, the Long Range RWD variant, was also added to the lineup this 2025.
November 2025 momentum
While Tesla China’s overall sales this year have seen challenges, the Model Y and Model 3 have remained strong sellers in the country. This is especially impressive as the Model Y and Model 3 are premium-priced vehicles, and they compete in the world’s most competitive electric vehicle market. Tesla China is also yet to roll out the latest capabilities of FSD in China, which means that its vehicles in the country could not tap into their latest capabilities yet.
Aggregated results from November suggest that the Tesla Model Y took the crown as China’s #1 best-selling SUV during the month, with roughly 34,000 deliveries. With the Model Y L, this number is even higher. The Tesla Model 3 also had a stellar month, seeing 25,700 deliveries during November 2025.
Tesla needs to come through on this one Robotaxi metric, analyst says
Tesla gets bold Robotaxi prediction from Wall Street firm
