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Tesla to roll out ‘Enhanced Autopilot’ that uses new self-driving ‘Hardware 2’

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Tesla has announced that all current Tesla Model S and Model X vehicles coming off the production line, as well as the future Model 3, will be equipped with hardware to allow the vehicle to achieve Level 5 autonomy and drive completely on its own without human input. Each Tesla vehicle will have a 360 degree view of its surroundings through the use of 8 cameras and a new computer that has forty times the processing power as current generation hardware. The new update which the company is referring to as “Full Self-Driving Capability”, or what Elon Musk refers to as “Hardware 2” cars, has shifted focus away from the current generation Autopilot “Hardware 1” vehicles. In place of the original Autopilot is an upgraded version of the driving-assist feature, now referred to as “Enhanced Autopilot”.

Tesla Enhanced Autopilot is being offered as a $5,000 option at the time of purchase, or $6,000 after delivery, and will have all of the same features as the current generation of Autopilot, but with far greater accuracy. According to the feature description on Tesla’s Model S and Model X Design Studio, Enhanced Autopilot “will match speed to traffic conditions, keep within a lane, automatically change lanes without requiring driver input, transition from one freeway to another, exit the freeway when your destination is near, self-park when near a parking spot and be summoned to and from your garage”.

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The existing Autopilot feature under Version 8.0 has been under scrutiny after some owners reported poor lane keeping abilities, inability to exit freeways and unpredictable vehicle movement and braking. But with 8 cameras and 12 upgraded ultrasonic sensors that have nearly twice the range of those found in prior versions of Autopilot, new “Hardware 2” equipped vehicles will be able to monitor activity around the vehicle, including blind spots. Forward-looking side cameras mounted to the vehicle will be able to track cars that unexpectedly enter into a driver’s lane. The side cameras will also provide another level of safety for the driver when entering into an intersection or four way stop. In addition, rear-side cameras will detect vehicles that approach from rear blind spots, thus allowing for safer lane changes, especially when merging into traffic.

Despite the increased safety measures, Tesla notes that Enhanced Autopilot is still a driver’s assistance feature and drivers are responsible for maintaining control of their vehicles at all times.

In terms of when owners can expect Enhanced Autopilot to be ready for use, Musk says an over-the-air update will take place at the end of the year subject to regulatory approvals. Musk notes that Hardware 1, or current generation Autopilot vehicles, will initially be better than Hardware 2 cars, but the two systems will have feature parity come December 2016.

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“It’ll take us some time into the future to complete validation of the software, and obviously get through required regulatory approval,” Musk told press. “But the important thing is that the foundation is laid for cars to be made fully autonomous, at a safety level of at least twice that of a person, maybe better.”

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Tesla Semi shows strong results in ArcBest’s real-world freight trial

The truck handled varied terrain, including a 7,200-foot climb over Donner Pass.

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Credit: ArcBest/X

ArcBest has successfully wrapped up a three-week pilot program testing a Class 8 Tesla Semi in over-the-road applications. The trial was conducted through ArcBest’s ABF Freight division, and it covered routes between Reno and Sacramento and regional operations around the Bay Area.

Tesla Semi pilot sees strong performance and positive driver feedback

The Tesla Semi logged 4,494 miles during the pilot, averaging 321 miles per day with an energy efficiency of 1.55 kWh per mile. The Tesla Semi handled varied terrain, including a 7,200-foot climb over Donner Pass, and delivered performance comparable to diesel counterparts. 

Drivers who participated in the pilot also gave positive feedback to the Tesla Semi, citing the Class 8 all-electric truck’s comfort, safety, and visibility thanks to features like a center seating position and intuitive controls. Matt Godfrey, president of ABF Freight, shared his thoughts on the pilot in a press release

“We’re not looking for a truck that performs well ‘for an EV.’ It must meet or exceed the performance and total cost of ownership targets of our most efficient diesel units. This pilot gives us great insight into the potential of EV semis in our operations,” he said. 

ArcBest highlights need for more charging infrastructure

While the pilot met expectations, ArcBest noted that broader deployment of Class 8 all-electric trucks like the Tesla Semi will still depend on improvements in charging infrastructure. This way, longer-haul operations become more than feasible.

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The pilot marks another step in ArcBest’s investment in sustainable logistics technologies. In addition to testing the Tesla Semi, the company operates a small fleet of EVs, including nine electric yard tractors, two electric forklifts, and two Class 6 electric straight trucks. Dennis Anderson, ArcBest chief innovation officer, noted that vehicles like the Tesla Semi are notable developments in the transportation sector.

“Freight transportation is a vital part of the global economy, and we know it also plays a significant role in overall greenhouse gas emissions. While the path to decarbonization presents complex challenges — such as infrastructure needs and alternative fuel development — it also opens the door to innovation. Vehicles like the Tesla Semi highlight the progress being made and expand the boundaries of what’s possible as we work toward a more sustainable future for freight,” he stated.

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Investor's Corner

Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley

Jonas assigned each robot a net present value (NPV) of $200,000.

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Credit: Tesla Optimus/X

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker. 

In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.

Morgan Stanley highlights Optimus’ savings potential

Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.

“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.

Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.

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Musk’s political ambitions

The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States. 

Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.

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Linda Yaccarino steps down as X CEO

Yaccarino highlighted the work that the X team has done over the past two years under her leadership.

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Credit: Linda Yaccarino/X

X CEO Linda Yaccarino has announced that she is stepping down as the social media platform’s chief executive. She shared her update in a post on X.

In her post, Yaccarino highlighted the work that the X team has done over the past two years under her leadership. As per the executive, the company has made significant strides towards its goal of becoming the Everything App. She also highlighted the company’s work in prioritizing the safety of its users, particularly children.

Following is Yaccarino’s statement:

After two incredible years, I’ve decided to step down as CEO of 𝕏. 

When @elonmusk and I first spoke of his vision for X, I knew it would be the opportunity of a lifetime to carry out the extraordinary mission of this company. I’m immensely grateful to him for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App. 

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I’m incredibly proud of the X team – the historic business turn around we have accomplished together has been nothing short of remarkable. 

We started with the critical early work necessary to prioritize the safety of our users—especially children, and to restore advertiser confidence. This team has worked relentlessly from groundbreaking innovations like Community Notes, and, soon, X Money to bringing the most iconic voices and content to the platform. Now, the best is yet to come as X enters a new chapter with @xai

X is truly a digital town square for all voices and the world’s most powerful culture signal. We couldn’t have achieved that without the support of our users, business partners, and the most innovative team in the world. 

I’ll be cheering you all on as you continue to change the world. 

As always, I’ll see you on 𝕏.

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Elon Musk has issued a response to Yaccarino’s decision to step down as X’s CEO. In a reply, Musk thanked the executive for her work on the social media platform for the past two years. 

“Thank you for your contributions,” Musk wrote.

Under Yaccarino’s leadership, X traversed rocky waters and reestablished itself as a town square where the world’s most notable people are within reach of everyday users across the globe. She also helped lead the company through its acquisition by Elon Musk’s artificial intelligence startup, xAI. At the time, the deal valued X at $33 billion, lower than the $44 billion paid by Elon Musk for Twitter but notably higher than estimates from firms like Fidelity, which valued the social media platform at below $10 billion in late 2024.

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