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Tesla is patenting a clever way to train Autopilot with augmented camera images
Tesla is currently tackling what could only be described as its biggest challenge to date. In his Master Plan, Part Deux, CEO Elon Musk envisioned a fleet of zero-emissions vehicles that are capable of driving on their own. Tesla has made steps towards this goal with improvements and refinements to its Autopilot and Full Self-Driving suites, but a lot of work remains to be done.
As noted by Tesla during its Autonomy Day presentation last year, attaining Full Self-Driving is largely a matter of training the neural networks used by the company. Tesla adopts what could be described as a somewhat organic approach for autonomy, with the company using a system that is centered on cameras and artificial intelligence — the equivalent of a human primarily using the eyes and brain to drive.
Tesla’s camera-centric approach may be quite controversial due to Elon Musk’s strong stance against LiDAR, but it is gaining ground, with other autonomous vehicle companies such as MobilEye developing FSD systems that rely primarily on visual data and a trained neural network. This approach does come with its challenges, as training neural networks requires tons of data. Tesla emphasized this point as much during its Autonomy Day presentation.
With this in mind, it is pertinent for the electric car maker to train its neural networks in a way that is as efficient as possible with zero compromises. To help accomplish this, Tesla seems to be looking into the utilization of augmented data, as described in a recently published patent titled “Systems and Methods for Training Machine Models with Augmented Data.”
Teslas are equipped with a suite of cameras that provide 360-degree visual coverage for the vehicle. In the patent’s description, Tesla noted that images used for neural network training are usually captured by various sensors, which, at times, have different characteristics. An example of this may lie in a Tesla’s three forward-facing cameras, each of which has a different field of view and range as the other two.
Tesla’s recent patent describes a system that allows the company to process these images in an optimized manner. Part of how this is done is through augmentation, which opens the doors to flexible and widespread neural network training, even when it involves vehicles equipped with differently-specced cameras. The electric car maker describes this process as such:
“Augmentation may provide generalization and greater robustness to the model prediction, particularly when images are clouded, occluded, or otherwise do not provide clear views of the detectable objects. These approaches may be particularly useful for object detection and in autonomous vehicles. This approach may also be beneficial for other situations in which the same camera configurations may be deployed to many devices. Since these devices may have a consistent set of sensors in a consistent orientation, the training data may be collected with a given configuration, a model may be trained with augmented data from the collected training data, and the trained model may be deployed to devices having the same configuration.”
Among the most notable aspects of Tesla’s recent patent is the use of “cutouts,” which allow Tesla’s neural networks to be trained using an optimized set of images. This was something that was discussed by former Tesla Autopilot engineer Eshak Mir in a Third Row Podcast interview, where he hinted at a system adopted in the electric car maker’s ongoing Autopilot rewrite that helped lay out “all the camera images” from a vehicle “into one view.” Such a process has the potential to help Tesla with 3D labeling, especially since the images used for neural network training are stitched together. Tesla’s patent seems to reference a system that is very similar to that described by the former Autopilot engineer.
“As a further example, the images may be augmented with a“cutout” function that removes a portion of the original image. The removed portion of the image may then be replaced with other image content, such as a specified color, blur, noise, or from another image. The number, size, region, and replacement content for cutouts may be varied and may be based on the label of the image (e.g., the region of interest in the image, or a bounding box for an object).”
Tesla is aiming to release a feature-complete version of its Full Self-Driving suite as soon as possible. Elon Musk remains optimistic about this, despite the company missing its initial timeline that was set at the end of 2019. That being said, Elon Musk did mention previously that Tesla is working on a foundational rewrite of Autopilot. In a tweet early last month, Musk stated that an essential part of the rewrite involves work on Autopilot’s core foundation code and 3D labeling. Once done, the CEO indicated that additional functionalities could be rolled out quickly. This recent patent, if any, seems to give a glimpse at how these improvements are being done.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by consumers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
Tesla Cybercab gets a for sale date at last
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
