A recently published Tesla patent application titled “System and Method for Handling Errors in a Vehicle Neural Network Processor” describes a way to safely handle errors encountered in self-driving software. Rather than risking delays in driving responses that result from input data errors, a signal is sent to ignore the bad information and continue processing as usual. Tesla’s application was published May 23, 2019 as International Publication No. WO/2019/099941.
During self-driving operations in Tesla’s program, streams of real-time input data are received and used to both train its neural network and initiate a vehicle response to what’s being processed. If something in the data is erroneous or causes a delay in processing, the real-world impact can be disastrous if not handled properly. For example, in a fast-moving vehicle, sensor data can become stale very quickly and cause the self-driving software to respond to an environment that no longer exists. This can result in accidents, property damage, injury, and/or death. The solution presented in Tesla’s patent application attempts to avoid such processing delays altogether and thus improves the safety of the self-driving software overall.
Tesla’s patent application describes the issue as follows:
“Some types of errors may cause neural network processor to hang or time out. That is, one or more portions of neural network processor may freeze or otherwise remain inactive for more than a predetermined amount of time. When a timeout error is encountered, [the] neural network processor may cease to provide output data and/or respond to input data. Other types of errors, such as program errors and/or data errors, may cause the output data generated by [the] neural network processor to be corrupted. When such errors are encountered, [the] neural network processor may continue to provide output data, but the result may be incorrect, meaningless, and/or otherwise unusable.”
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- Tesla’s self-driving patent application focuses on handling errors found in its neural network. | Image: Tesla/WIPO
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- Tesla’s self-driving patent application focuses on handling errors found in its neural network. | Image: Tesla/WIPO
On its face, the concept behind invention may seem somewhat simple, but likely due to the complexity of neural networks and the field of autonomous driving still being fairly new, Tesla’s solution is unique and innovative. At the international review stage in the patent application process, the Examiner found that Tesla’s patent was novel (new) compared to similar neural network inventions already in the field. Specifically, the following was commented in a Written Opinion:
“Although neural network processors are well known in the art, including in the operation of a vehicle, the addition of having the controller signal that a pending data result is tainted, or incorrect, without terminating the execution of the network, improves upon prior art processors by ensuring the computations of the processor in the vehicle continue while ignoring data determined to be in error, and would require a complexity beyond the ordinary skill, and therefore…meets the…criteria for patentability.”
Concerns about Tesla’s Autopilot software were recently hit by a report published by Consumer Reports wherein the consumer advocacy group concluded that Navigate on Autopilot with autonomic lane changes was more of a liability than an asset. The report stated that, since the feature requires drivers to be one step ahead of the system while it is engaged, it still needs improvement, although the same group found Tesla’s autonomous driving software to be more capable than the competition. However, the report was only focused on how Navigate on Autopilot operates when changing lanes confirmation and warnings are disabled, contrary to scathing headlines which lumped all of Autopilot’s features together with the review.
This most recent patent application shows that Tesla is continuously improving its self-driving features, if that wasn’t already obvious from the company’s frequent over-the-air software releases.
At Tesla’s Autonomy Day for investors last month, CEO Elon Musk declared that the company’s Full Self-Driving computer was objectively the “best in the world”. As more information becomes available, such as presentations on Tesla’s technology and in patent applications, Musk’s confidence expressed in his statement becomes more clear. Full Self-Driving is expected to be feature-complete this year and will become publicly available as regulatory hurdles are overcome.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
