News
Tesla Model S driver using Autopilot arrested for sleeping while driving 90 mph
Tesla’s Autopilot is meant to be an assistance feature for alert drivers to both increase their enjoyment of driving and add a layer of vehicle safety. However, stories about irresponsible users come into the news cycle on occasion, this time from a 2019 Model S owner in Alberta, Canada. On Thursday, the Royal Canadian Mounted Police (RCMP) reported the arrest, license suspension, and court summons of a young driver from British Columbia after using his Tesla’s Autopilot while asleep. The all-electric sedan reached over 90 mph before pulling over during the incident which occurred on July 9, 2020.
“Alberta RCMP received a complaint of a car speeding on Hwy 2 near #Ponoka. The car appeared to be self-driving, travelling over 140 km/h with both front seats completely reclined & occupants appeared to be asleep,” the RCMP official Twitter account detailed. “The driver received a Dangerous Driving charge & summons for court.”
Alberta RCMP received a complaint of a car speeding on Hwy 2 near #Ponoka. The car appeared to be self-driving, travelling over 140 km/h with both front seats completely reclined & occupants appeared to be asleep. The driver received a Dangerous Driving charge & summons for court pic.twitter.com/tr0RohJDH1
— RCMP Alberta (@RCMPAlberta) September 17, 2020
The Tesla Model S was also said to have automatically sped up from about 87 mph to about 93 mph when approached by the police vehicle. No injuries resulted from the incident.
In a more detailed report on the RCMP website, it was noted that the 20 year-old driver received a 24-hour license suspension for fatigue after being pulled over. Additionally, the driver’s court date is set for December to address the charges. “Although manufacturers of new vehicles have built in safeguards to prevent drivers from taking advantage of the new safety systems in vehicles, those systems are just that — supplemental safety systems,” Superintendent Gary Graham of Alberta RCMP Traffic Services stated in the RCMP report. “They are not self-driving systems, they still come with the responsibility of driving.”
Some replies to the RCMP’s Twitter post suggested that the two Tesla Model S occupants were likely pulling a prank on onlookers and police, but the lack of road awareness during the event is still dangerous regardless of intent. It also explicitly goes against Tesla’s user manual along with frequent and insistent reminders that the feature is not meant to function without human supervision at this time. As any Autopilot user can attest, the vehicles will remind drivers to stay alert and place their hands on the wheel if their presence is not detected for a few seconds, escalating the visual and audible warnings, and ultimately locking the driver out of the feature for the duration of the trip if repeatedly ignored.
Still, the ability to manipulate Tesla’s Autopilot system is taken advantage of despite warnings against such action, and heavy criticism has been levied against the electric carmaker because of it. For instance, last December Democratic U.S. Senator Ed Markey of Massachusetts demanded that the company disable the feature until its ‘flaws’ were remedied.
“Autopilot clearly can’t be allowed to replace drivers on our roads. This tech will continue causing harm until Tesla takes action to fix its flawed system and make sure drivers are paying attention,” Markey wrote on Twitter. “That’s why I sent a letter demanding Tesla take action to protect the public.” His comments were in response to an accident involving a Tesla crashing into a police car. The driver was checking on his dog in the back seat at the time of the collision, according to reports.
For those needing any assistance with understanding the safety precautions required while using Autopilot, or perhaps a bit of a laugh, Teslarati has put something together for the occasion: “The Tesla hitchhiker’s guide to getting the most out of your Autopilot experience.“
Investor's Corner
SpaceX AI investment gamble will make it a big winner, firm says
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.
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.
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.
News
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
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.
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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
