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Tesla’s camera-based driver monitoring system exists; pretending it doesn’t makes roads less safe

Credit: Whole Mars Catalog/Twitter

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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. 

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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. 

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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?

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla trims Model Y offerings as All-Wheel-Drive gets the axe

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Credit: Tesla

Tesla has trimmed its Model Y offerings as its Standard All-Wheel-Drive configuration has been removed from the online configurator after roughly nine months on sale. The move follows the removal of the Cybertruck, as its trims have also been minimized as that vehicle heads for total discontinuation at the end of Summer 2027.

Launched in February 2026 as a mid-tier dual-motor option between the Rear-Wheel-Drive model and the Premium trims, the Standard All-Wheel-Drive Model Y offered 294 miles of range and a 4.6-second 0-60 mph time in a stripped-down package.

With it gone, the cheapest new AWD Model Y buyers can configure is now the Premium AWD at $49,990, with estimated deliveries pushed into January–March 2027. The $39,990 rear-wheel-drive Model Y remains available for custom orders, and some AWD units are still listed in inventory.

The move arrives days after Tesla sharply narrowed its Cybertruck lineup. New orders for the Dual Motor AWD and Premium AWD versions have been disabled, leaving only the high-performance Cyberbeast—priced around $109,990 before fees—as the sole configurable option.

Elon Musk has stated that Cybertruck production at Gigafactory Texas will wind down around the middle to late summer of 2027 to free manufacturing space for greater Cybercab output. Tesla has raised prices on remaining trims and is prioritizing higher-margin builds while working through an existing order backlog that exceeds what the line can complete before conversion.

These parallel decisions reflect a broader effort to simplify Tesla’s retail customer lineup. Lower-volume or lower-margin variants are being phased out or deprioritized in favor of core, higher-spec models that generate stronger profitability and clearer production planning.

For the Model Y, this concentrates volume on the remaining RWD and Premium configurations while Premium deliveries already stretch into 2027. For the Cybertruck, it accelerates the transition away from a stainless-steel pickup that underperformed relative to initial volume expectations.

Tesla Model Y Standard Full Review: Is it worth the lower price?

The freed capacity and reduced complexity directly support Cybercab scaling. Tesla began pilot Cybercab production at Giga Texas in early 2026, launched paid autonomous rides in Austin in September, and is preparing for substantial volume growth.

By streamlining the existing vehicle portfolio, the company is reallocating factory space, engineering attention, and supply-chain resources toward its purpose-built Robotaxi, which lacks a steering wheel or pedals and is designed exclusively for unsupervised autonomy.

The result is a leaner retail lineup today and a clearer path to high-volume Cybercab deployment tomorrow.

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SpaceX Starship is going for a catch that could change spaceflight forever

SpaceX will try to catch both Starship stages today, a first for any orbital rocket.

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SpaceX Starship V3 flight 12

SpaceX is set to launch Starship Flight 15 from Starbase on Friday afternoon, and if both stages make it back to the tower, the mission will go down as the first time an orbital rocket has ever been fully recovered. The 75 minute launch window opens at 4:45 p.m. CT from Pad 2, a day after SpaceX rolled Ship 42 out to the pad and shared photos of the move on X.

The first catch comes quickly. About six and a half minutes after liftoff, Booster 22 is scheduled to fly back to Starbase and settle into the launch tower’s chopstick arms, the first catch attempt for SpaceX’s V3 Super Heavy. SpaceX has caught the booster three times before most recently in March 2025.

The second catch is the one that has never been done. Ship 42 will climb to an orbit about 275 kilometers up, deploy 26 Starlink V3 satellites and complete about 14 orbits. Three of those satellites carry cameras to inspect the ship’s heat shield before it commits to coming home. If its reentry, landing burn and tower approach systems pass their checks, the ship will fire its engines to leave orbit, fall through the atmosphere in its belly flop position, flip vertical and drop into the tower about 22 and a half hours after launch, on Saturday afternoon. SpaceX gave a preview of that maneuver in an animation during its third quarter earnings webcast.

Elon Musk described a successful double catch on that call as “the first time that an orbital launch vehicle has been fully recovered” and a “profound technology milestone,” putting the odds of catching the ship at “more likely than not.” SpaceX has called it a potential “breakthrough moment in making Starship a reliable, rapidly reusable rocket,”

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Reuse is where the economics change. Falcon 9 lands its boosters routinely, but its upper stage is thrown away on every flight. Starship is designed so both stages can be refueled and flown again, which is key to cutting launch costs. That matters for Starlink, where each V3 satellite is expected to carry roughly 10 times the download capacity of the V2 Mini satellites flying today, and for Starmind, SpaceX’s planned constellation of AI compute satellites.

It matters for NASA too. Starship is the lunar lander for the Artemis program, and reaching the Moon requires refilling a ship in orbit using several tanker flights. That plan only works if Starships can fly again and again. Musk has said he expects Starship to reach a weekly launch cadence in the first half of 2027.

Investors are paying attention. Morgan Stanley’s Adam Jonas wrote this week that a catch of both stages would likely be “a material positive” for SpaceX stock.

The last Starship flight in September reached orbit for the first time but ended after about three hours with a splashdown in the Pacific, short of its planned 10 hours, after some engines shut down. Since then, Booster 22 has completed a full 33 engine static fire and Ship 42 a six engine firing, as Teslarati previously reported. As of Friday morning, SpaceX was still waiting on the FAA to approve a license change covering the ship’s return over land.

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Tesla and SpaceX merger talks hit a new stage, and one hurdle remains

Tesla and SpaceX merger talks are reportedly advancing, and a deal could arrive by December.

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Tesla and SpaceX are moving closer to a combination, with a deal announcement possible as soon as December, Bloomberg reported on Thursday, citing people familiar with the matter. The companies have also discussed a scenario in which the announcement slips into early 2027.

Boards and advisers on both sides are now working through the terms of the deal and the governance structure of the combined company, according to the report. One open item is how many SpaceX shares Tesla investors would receive. Bloomberg had previously reported that the two companies were aiming to announce a deal in the first half of next year and close it before the end of President Donald Trump’s term, so a December announcement would pull that schedule forward by months.

Tesla shares rose as much as 1.9% to $398.35 after the report, while SpaceX gained 0.6% to $140.63. SpaceX carries a market value of about $1.9 trillion following its June IPO, and Tesla is valued at about $1.55 trillion, which would make a combination the largest corporate deal on record. Neither company responded to requests for comment.

The talks became official on October 20, when Elon Musk said on SpaceX’s third quarter earnings call that both companies had formed special committees of independent directors to study a merger, as Teslarati reported. Musk said he could not take part because he is “a conflicted party” and called the process “an odd kabuki dance.” He also noted that Tesla would need approval from 50 percent of all outstanding shares, a bar the company missed in 2025 when a board declassification proposal won support from only 39.4 percent.

China remains the biggest structural problem. Bloomberg’s sources said the companies still need to work out how to isolate Tesla’s large and profitable manufacturing business in China from SpaceX’s U.S. government and defense contracts. JPMorgan analyst Rajat Gupta described those two factors last month as “key dynamics that are at odds with each other” for regulatory and shareholder approval. Musk has repeatedly said Tesla has no plans to separate its China business, a position he restated in August after ARK Invest predicted a merger announcement before the end of the year.

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Washington adds another layer. Democrats took control of Congress in this month’s midterms and have pledged to investigate Musk’s business and political activities, which could bring added scrutiny to a deal involving one of the Pentagon’s most important launch and satellite contractors.

The report also lands three weeks before Tesla’s December 3 annual meeting at Giga Texas. That ballot has only three items, led by the re-election of Musk, board chair Robyn Denholm and JB Straubel, and includes no merger proposal. Any deal announced in December would likely require a separate special meeting for Tesla shareholders to vote on it.

The two companies already share a growing list of projects, including the Terafab semiconductor plant in Texas. Tesla’s next generation Roadster, which uses cold gas thrusters built on SpaceX hardware, turned up on display at SpaceX headquarters last month and has become one of the clearest public examples of that overlap.

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