News
Tesla Texas Crash: NTSB report says ‘Autosteer not available’ where crash occurred
The National Transportation Safety Board has released a preliminary report regarding the Tesla Model S crash in Texas that occurred last month. The NTSB said that testing of an exemplar car at the crash location revealed that Autosteer “was not available on that part of the road.” However, Tesla’s Traffic Aware Cruise Control “could be” engaged by the NTSB during its testing.
The crash occurred on April 17th, 2021, near Spring, Texas. Initial reports indicate that the vehicle was equipped with the capability to operate with Autopilot, Tesla’s advanced driver assistance system. However, Autopilot is not available for utilization on every public road in existence. While mainstream media reports quickly jumped to the conclusion that Autopilot was responsible for the crash after claims that the Model S was “driverless,” the NTSB and NHTSA announced that an investigation would take place to determine whether the vehicle was operating with Autopilot at the time of the crash.
NTSB findings via a security camera at the owner’s home showed that the owner entered the driver’s seat and the passenger entered the front passenger’s seat. ” The video also shows the car slowly entering the roadway and then accelerating down the road away from the camera and out of sight,” the NTSB added.
Tesla alleged “driverless” crash in Texas: What is known so far
The crash was violent, and after colliding with a tree, the Model S caught fire, and both occupants of the vehicle were killed. The vehicle fire was started upon impact with the high-voltage lithium-ion battery case, the report states. The fire destroyed the car, but it was put out in less time than was initially reported. Palmer Buck, Fire Chief for the Woodland Township Fire Department, spoke to the media regarding some reports that the fire raged on for four hours. This was false, and Chief Buck stated that it took two to three minutes for the fire to be extinguished.
However, the main concern of the wreck was whether the vehicle was operating on Autopilot or not. The NTSB tested a very similar “exemplar” vehicle of the Model S that was involved in the crash, and the agency found that it could not be activated where the accident took place.
The NTSB wrote explicitly:
-
“The vehicle was equipped with Autopilot, Tesla’s advanced driver assistance system. Using Autopilot requires both the Traffic Aware Cruise Control and the Autosteer systems to be engaged. 2 NTSB tests of an exemplar car at the crash location showed that Traffic Aware Cruise Control could be engaged but that Autosteer was not available on that part of the road.”
The agency could not recover several elements within the car, including the Onboard Storage Device inside the Infotainment console. However, the car’s restraint module that gives information on vehicle speed, belt status, acceleration, and airbag deployment was recovered but damaged by fire. The restraint control module was taken to the NTSB) recorder laboratory for evaluation, the report states.
The investigation continues, and the NTSB is collecting data to analyze crash dynamics, postmortem toxicology test results, seat belt use, occupant egress, and electric vehicle fires.
The NTSB added:
“All aspects of the crash remain under investigation as the NTSB determines the probable cause, with the intent of issuing safety recommendations to prevent similar crashes. The NTSB is working alongside the Harris County Texas Precinct 4 Constable’s Office, which is conducting a separate, parallel investigation. The National Highway Traffic Safety Administration and Tesla are supporting the NTSB in the investigation.”
The NTSB’s preliminary report is available below.
HWY21FH007 Preliminary Report by Joey Klender on Scribd
-
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.
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.
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.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
