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Tesla reportedly dropped by NTSB from fatal Model X investigation [Updated]

The aftermath of a fatal Tesla Model X accident. [Credit: Mercury News/Twitter]

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Tesla has opted to step back from the ongoing NTSB investigation into the fatal Model X accident last month near Mountain View, CA.

According to Tesla, it has decided to withdraw from its party agreement with the NTSB because it might result in withholding information that affects public safety. In an emailed statement to Bloomberg, the Elon Musk-led electric car maker stated that it believes in transparency.

“Tesla withdrew from the party agreement with the NTSB because it requires that we not release information about Autopilot to the public, a requirement which we believe fundamentally affects public safety negatively. We believe in transparency, so an agreement that prevents public release of information for over a year is unacceptable,” Tesla stated.

Despite not being a formal part of the ongoing NTSB investigation, Tesla stated that it would continue to provide technical assistance to the agency as it continues its probe into the tragic accident.

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Citing a person familiar with the matter, Bloomberg stated that the NTSB is actually removing Tesla from the investigation. Quite unlike the “very constructive conversation” reported by an NTSB spokesman last weekend between Tesla CEO Elon Musk and NTSB Chief Robert Sumwalt, the anonymous Bloomberg source stated that the talk involved Sumwalt informing Musk that his company was being taken off the investigation. The source further claimed that the conversation between Musk and the NTSB chief was “tense” due to the Tesla CEO’s reaction to the agency’s decision. 

Tesla’s decision to release information related to the NTSB’s ongoing probe resulted in the agency stating that it was “unhappy” with the electric car maker. Responding to the NTSB, Musk stated on Twitter that Tesla will immediately release information that can directly affect public safety.

“Lot of respect for NTSB, but NHTSA regulates cars, not NTSB, which is an advisory body. Tesla releases critical crash data affecting public safety immediately & always will. To do otherwise would be unsafe,” Musk tweeted.

Updated: Tesla has issued the following response to a statement made by the NTSB.

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“Last week, in a conversation with the NTSB, we were told that if we made additional statements before their 12-24 month investigative process is complete, we would no longer be a party to the investigation agreement. On Tuesday, we chose to withdraw from the agreement and issued a statement to correct misleading claims that had been made about Autopilot — claims which made it seem as though Autopilot creates safety problems when the opposite is true. In the US, there is one automotive fatality every 86 million miles across all vehicles. For Tesla, there is one fatality, including known pedestrian fatalities, every 320 million miles in vehicles equipped with Autopilot hardware. If you are driving a Tesla equipped with Autopilot hardware, you are 3.7 times less likely to be involved in a fatal accident and this continues to improve.

It’s been clear in our conversations with the NTSB that they’re more concerned with press headlines than actually promoting safety. Among other things, they repeatedly released partial bits of incomplete information to the media in violation of their own rules, at the same time that they were trying to prevent us from telling all the facts. We don’t believe this is right and we will be making an official complaint to Congress. We will also be issuing a Freedom Of Information Act request to understand the reasoning behind their focus on the safest cars in America while they ignore the cars that are the least safe. Perhaps there is a sound rationale for this, but we cannot imagine what that could possibly be.

Something the public may not be aware of is that the NTSB is not a regulatory body, it is an advisory body. The regulatory body for the automotive industry in the US is the National Highway Traffic Safety Administration (NHTSA) with whom we have a strong and positive relationship. After doing a comprehensive study, NHTSA found that even the early version of Tesla Autopilot resulted in 40% fewer crashes. Autopilot has improved substantially since then.

When tested by NHTSA, Model S and Model X each received five stars not only overall but in every sub-category. This was the only time an SUV had ever scored that well. Moreover, of all the cars that NHTSA has ever tested, Model S and Model X scored as the two cars with the lowest probability of injury. There is no company that cares more about safety and the evidence speaks for itself.”

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Just recently, the wife of the ill-fated Model X driver has gone on local news agency ABC7 News to state that her husband had complained about Autopilot multiple times before the March 23 accident. According to Mike Fong, the Huang family’s lawyer, the collision would not have happened had Autopilot not been activated. Fong noted that he would not file a complaint against Tesla while the NTSB investigation is ongoing, though he did state that the carmaker’s responses so far have been to blame the Model X’s driver.

While Tesla could be facing a lawsuit from the Huang family over the fatal incident, Will Huang, the Model X driver’s brother, previously stated to ABC7 News that his brother could have survived the accident had his car collided with a working crash attenuator. During its initial update about the fatal collision, Tesla stated that the crash attenuator that the Model X smashed into had been left unrepaired, causing extensive damage to the vehicle.

“That (the crash attenuator) ultimately should’ve saved my brother’s life. We’ve seen videos of similar crash(es) with cushion, and the driver walked out of it unharmed,” Will said.

Later statements from CalTrans eventually revealed that the highway safety device had been damaged from a collision 11 days before the Model X accident. According to CalTrans, crash attenuators are usually repaired in 7 days or 5 business days, but storms in the area prevented any repair work.

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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 intertwines FSD with in-house Insurance for attractive incentive

Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.

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tesla interior operating on full self driving
Credit: TESLARATI

Tesla intertwined its Full Self-Driving (Supervised) suite with its in-house Insurance initiative in an effort to offer an attractive incentive to drivers.

Tesla announced that its new Safety Score 3.0 will automatically have a perfect score of 100 with every mile driven with Full Self-Driving (Supervised) enabled.

The change is designed to boost customers’ average safety scores and deliver noticeably lower monthly premiums.

The move marks the clearest link yet between Tesla’s autonomous driving technology and its proprietary insurance product. Tesla Insurance already relies on real-time vehicle data—such as acceleration, braking, following distance, and speed—to calculate a Safety Score between 0 and 100. Higher scores have long translated into cheaper rates.

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Under the previous system, however, even brief manual interventions could drag down the average, frustrating owners who rely heavily on FSD. Version 3.0 eliminates that penalty for supervised autonomous miles, effectively treating FSD-driven segments as the safest possible driving behavior.

The incentive is immediate and financial. Drivers who keep FSD engaged for the majority of their trips will see their overall score rise, potentially shaving hundreds of dollars off annual premiums.

Tesla framed the update as a direct response to customer feedback, many of whom had complained that the old scoring model punished the very behavior it was meant to encourage.

For now, the program applies only to new policies in six states: Indiana, Tennessee, Texas, Arizona, Virginia, and Illinois.

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Existing policyholders are not yet included, a point that drew swift questions from the Tesla community. Many owners in other states, including California and Georgia, expressed hope that the benefit would expand nationwide soon.

The announcement arrives as Tesla continues to roll out FSD Supervised updates and push for regulatory approval of more advanced autonomy. By tying insurance savings directly to FSD usage, the company is putting its own actuarial weight behind the technology’s safety claims.

Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.

Tesla has not disclosed exact premium reductions or the full rollout timeline beyond the six launch states.

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Still, the message is clear: the more drivers trust FSD Supervised, the more Tesla Insurance will reward them. In an era when legacy insurers remain cautious about autonomous tech, Tesla is betting that its own data will prove the safest miles are the ones driven hands-free.

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Elon Musk

Tesla finalizes AI5 chip design, Elon Musk makes bold claim on capability

The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.

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Credit: Elon Musk | X

Tesla has finalized its chip design for AI5, as Elon Musk confirmed today that the new chip has reached the tape-out stage, the final step before mass production.

But in a brief reply on X, Musk clarified Tesla’s AI hardware roadmap, essentially confirming that the new chip will not be utilized for being “enough to achieve much better than human safety for FSD.”

He said that AI4 is enough to do that.

Instead, the AI5 chip will be focused on Tesla’s big-time projects for the future: Optimus and supercomputer clusters.

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Musk thanked TSMC and Samsung for production support, noting that AI5 could become “one of the most produced AI chips ever.” Yet, the key pivot came in his direct answer: vehicles no longer need the bleeding-edge silicon.

Existing AI4 hardware, which is already deployed in hundreds of thousands of HW4-equipped Teslas, delivers safety metrics superior to human drivers for Full Self-Driving. AI5 will instead accelerate Optimus robot development and massive Dojo-style training clusters.

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The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.

Now, with AI4 proving sufficient, the company avoids costly retrofits across its fleet while redirecting next-generation compute toward higher-value applications: dexterous robots and exponential training scale.

But is it reasonable to assume AI4 enables unsupervised self-driving? Yes, but with important caveats.

On the hardware side, the claim is credible. Tesla’s FSD stack runs end-to-end neural networks trained on billions of miles of real-world data. Internal safety data reportedly shows AI4-equipped vehicles already outperforming average human drivers by a significant margin in controlled metrics (collision avoidance, reaction time, edge-case handling).

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Dual-redundant AI4 chips provide ample headroom for the driving task, leaving bandwidth for future model improvements without new silicon. Musk’s assertion aligns with Tesla’s pattern of over-provisioning compute early, then optimizing ruthlessly, exactly as HW3 once sufficed before HW4 scaled further.

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Unsupervised autonomy, meaning Level 4 or higher, is not solely a compute problem. Regulatory approval remains the primary gate.

Even if AI4 achieves “much better than human” safety statistically, agencies like the NHTSA demand exhaustive validation, liability frameworks, and public trust.

Tesla’s supervised FSD has shown rapid gains in recent versions, yet real-world edge cases, like construction zones, emergency vehicles, and adverse weather, still require driver intervention in many jurisdictions. Competitors like Waymo operate limited unsupervised fleets, but only in geofenced areas with extensive mapping. Tesla’s vision-only, fleet-scale approach is more ambitious—and harder to certify globally.

In short, Musk’s post is both pragmatic and bullish. AI4 is likely capable of unsupervised FSD from a technical standpoint. Whether regulators and consumers agree, and how quickly, will determine if Tesla’s bet pays off.

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The company’s capital-efficient path keeps existing cars relevant while pouring future compute into robots. If the safety data holds, unsupervised autonomy could arrive sooner than many expect.

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Elon Musk signals expansion of Tesla’s unique side business

Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.

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tesla diner
Credit: Tesla

Elon Musk has signaled an expansion of Tesla’s unique side business, something that really has nothing to do with cars or spaceships, but fans of the company have truly adopted it as just another one of its awesome ventures.

Musk confirmed on Wednesday that Tesla would build a new Diner location in Palo Alto, Northern California. After hinting last October that it “probably makes sense to open one near our Giga Texas HQ in Austin and engineering HQ in Palo Alto,” it seems one of those locations is being set into motion.

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Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.

He first floated broader expansion plans shortly after the LA opening in July 2025, noting that if the prototype succeeded, Tesla would roll out similar venues in major cities worldwide and along long-distance Supercharger routes.

Earlier hints included a confirmed second site at Starbase in Texas, tied to SpaceX operations, underscoring the Diner’s role in enhancing Tesla’s ecosystem behind vehicles.

The Los Angeles location on Santa Monica Boulevard in West Hollywood has served as a high-profile test case. Opened in July 2025 at 7001 Santa Monica Blvd., it features the world’s largest urban Supercharging station with 80 V4 stalls open to all NACS-compatible EVs, over 250 dining seats, rooftop views, and 24/7 service.

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The retro-futuristic building replaced a former Shakey’s and quickly became a destination. Tesla reported selling 50,000 burgers in the first 72 days—an average of over 700 daily—drawing crowds with Cybertruck-shaped packaging, breakfast extensions until 2 p.m., and movie screenings.

Palo Alto stands out as a logical next step for several reasons. As Tesla’s longstanding engineering headquarters in the heart of Silicon Valley, the city is home to thousands of Tesla employees, engineers, and executives who could benefit from a convenient, branded gathering spot.

The area boasts high EV adoption rates, dense tech talent, and heavy traffic along key corridors, making a large Supercharger-diner an ideal fit for both daily commuters and long-haul travelers.

Proximity to Stanford University and the innovation ecosystem would amplify its appeal, potentially serving as a showcase for Tesla’s vision of integrated mobility and lifestyle experiences. It could be a great way for Tesla to recruit new talent from one of the country’s best universities.

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If Tesla and Musk decide to move forward with a Palo Alto diner, it would build directly on the LA prototype’s momentum while addressing Musk’s earlier calls for expansion near core Tesla hubs.

Whether it materializes as a full confirmation or evolves from these hints remains to be seen, but the pattern is clear: Tesla is testing ways to make charging stops memorable. For EV drivers and enthusiasts alike, a Silicon Valley outpost could blend cutting-edge tech with nostalgic comfort, further embedding Tesla into everyday culture. As Musk’s comments suggest, the future of the Diner looks promising.

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