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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.
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.
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 shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
