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Tesla’s camera-based driver monitoring system exists; pretending it doesn’t makes roads less safe
Tesla’s FSD Beta program has begun its expansion to more users. And while the system is only being distributed today to drivers with a perfect Safety Score, the advanced driver-assist system is expected to be released to users with a rating of 99 and below in the near future. True to form, with the expansion of FSD Beta also came the predictable wave of complaints and pearl-clutching from critics, some of whom still refuse to acknowledge that Tesla is now utilizing its vehicles’ in-cabin camera to bolster its driver-monitoring systems.
Just recently, the NHTSA sent a letter to Tesla asking for an explanation why the company rolled out some improvements to Autopilot without issuing a safety recall. According to the NHTSA, Tesla should have filed for a recall notice if the company found a “safety defect” on its vehicles. What was missed by the NHTSA was that the Autopilot update, which enabled the company’s vehicles to slow down and alert their drivers when an emergency vehicle is detected, was done as a proactive measure, not as a response to a defect.
Consumer Reports Weighs In
Weighing in on the issue, Consumer Reports argued that ultimately, over-the-air software updates do not really address the main weakness of Teslas, which is driver-monitoring. The magazine admitted that Tesla’s driver-assist system’s object detection and response is better than comparable systems, but Kelly Funkhouser, head of connected and automated vehicle testing for Consumer Reports, argued that it is this very reason why the magazine has safety concerns with Tesla’s cars.
“In our tests, Tesla continues to perform well at object detection and response compared to other vehicles. It’s actually because the driver assistance system performs so well that we are concerned about overreliance on it. The most important change Tesla needs to make is to add safeguards—such as an effective direct driver monitoring system—to ensure the driver is aware of their surroundings and able to take over in these types of scenarios,” Funkhouser said.
Jake Fisher, senior director of Consumer Reports‘ Auto Test Center, also shared his own take on the issue, particularly around some Autopilot crashes involving stationary emergency vehicles on the side of the road. “CR’s position is that crashes like these can be avoided if there is an effective driver monitoring system, and that’s the underlying problem here,” Fisher said, adding that over-the-air software updates are typically not sent to address defects.
Tesla’s camera-based DMS
Funkhouser and Fisher’s reference to direct driver monitoring systems is interesting because the exact feature has been steadily rolling out to Tesla’s vehicles over the past months. It is quite strange that Consumer Reports seems unaware about this, considering that the magazine has Teslas in its fleet. Tesla, after all, has been rolling out its camera-based driver monitoring system to its fleet since late May 2021. A rollout of the camera-based system to radar-equipped vehicles was done in the previous quarter.
Tesla’s Release Notes for its camera-based driver monitoring function describes how the function works. “The cabin camera above your rearview mirror can now detect and alert driver inattentiveness while Autopilot is engaged. Camera data does not leave the car itself, which means the system cannot save or transmit information unless data sharing is enabled,” Tesla noted in its Release Notes.
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What is interesting is that Consumer Reports‘ Jake Fisher was made aware of the function when it launched last May. In a tweet, Fisher even noted that the camera-based system was not “just about preventing abuse;” it also “has the potential to save lives by preventing distraction.” This shows that Consumer Reports, or at least the head of its Auto Test Center, has been fully aware that Tesla’s in-cabin cameras are now steadily being used for driver monitoring purposes. This makes his recent comments about Tesla’s lack of driver monitoring quite strange.
Legacy or Bust?
That being said, Consumer Reports appears to have a prepared narrative once it acknowledges the existence of Tesla’s camera-based driver-monitoring system. Back in March, the magazine posted an article criticizing Tesla for its in-cabin cameras, titled “Tesla’s In-Car Cameras Raise Privacy Concerns.” In the article, the magazine noted that the EV maker could simply be using its in-cabin cameras for its own benefit. “
“We have already seen Tesla blaming the driver for not paying attention immediately after news reports of a crash while a driver is using Autopilot. Now, Tesla can use video footage to prove that a driver is distracted rather than addressing the reasons why the driver wasn’t paying attention in the first place,” Funkhouser said.
Considering that Consumer Reports seems to be critical of Tesla’s use (or non-use for that matter) of its vehicles’ in-cabin cameras, it appears that the magazine is arguing that the only effective and safe driver monitoring systems are those utilized by veteran automakers like General Motors for its Super Cruise system. However, even the advanced eye-tracking technology used by GM for Super Cruise, which Consumer Reports overtly praises, has been proven to be susceptible to driver abuse.
This was proven by Car and Driver, when the motoring publication fooled Super Cruise into operating without a driver using a pair of gag glasses with eyes painted on them. One could easily criticize Car and Driver for publicly showcasing a vulnerability in Super Cruise’s driver monitoring systems, but one has to remember that Consumer Reports also published an extensive guide on how to fool Tesla’s Autopilot into operating without a driver using a series of tricks and a defeat device.
Salivating for the first FSD Beta accident
What is quite unfortunate amidst the criticism surrounding the expansion of FSD Beta is the fact that skeptics seem to be salivating for the first accident involving the advanced driver-assist system. Fortunately, Tesla seems to be aware of this, which may be the reason why the Beta is only being released to the safest drivers in the fleet. Tesla does plan on releasing the system to drivers with lower safety scores, but it would not be a surprise if the company ends up adopting an even more cautious approach when it does so.
That being said, incidents on the road are inevitable, and one can only hope that when something does happen, it would not be too easy for an organization such as Consumer Reports to run away with a narrative that echoes falsehoods that its own executives have recognized publicly — such as the potential benefits of Tesla’s camera-based driver monitoring system. Tesla’s FSD suite and Autopilot are designed as safety features, after all, and so far, they are already making the company’s fleet of vehicles less susceptible to accidents on the road. Over time, and as more people participate in the FSD Beta program, Autopilot and Full Self-Driving would only get safer.
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Tesla is not above criticism, of course. There are several aspects of the company that deserves to be called out. Service and quality control, as well as the treatment of longtime Tesla customers who purchased FSD cars with MCU1 units, are but a few of them. However, it’s difficult to defend the notion that FSD and Autopilot are making the roads less safe. Autopilot and FSD have already saved numerous lives, and they have the potential to save countless more once they are fully developed. So why block their development and rollout?
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Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.”
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.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
