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Tesla’s self-driving rollout strategy for Boring Co’s Las Vegas Loop gets teased
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority (LVCVA), has shared some interesting tidbits about The Boring Company’s plans for the rollout of its self-driving Tesla fleet for its Las Vegas tunnels. Hill noted that while the entire system would likely not be self-driving by the end of this year, tests involving some autonomous cars should begin soon.
Initial renders of The Boring Company’s Loop system showed sleek tunnels with futuristic high-capacity vehicles traveling from one station to another autonomously. Yet for now, the Las Vegas Convention Center Loop and the Resorts World station operate using manually-driven Teslas that can hold about three passengers per vehicle. This has caught some mockery from Elon Musk critics.
Yet according to Hill, Tesla is continuing to work on its full self-driving system for the vehicles in the Las Vegas tunnels. In comments to the Las Vegas Review-Journal, Hill stated that he believes some of the Teslas being used in the Loop system would use the company’s full self-driving system sometime in the next fiscal year.
“We are certainly headed toward an autonomous system. We said at a (LVCVA) board meeting a month or two ago that our goal was, by the end of this fiscal year, to have some amount of autonomous driving happening in the system,” Hill said.
Elon Musk has mentioned recently that the Las Vegas Loop’s Tesla fleet may use FSD later this year. In this light, Hill noted that one vehicle at a time would be switched to use Tesla’s full self-driving system. And even at this point, they will still be using safety drivers until it can be proven that the vehicles can operate safely and adequately on their own. Only at this point will the drivers be removed.
“I don’t think we’ll be fully autonomous by the end of this calendar year, but we think we’re in a position to start testing autonomy relatively soon,” the LVCVA president said.
High-capacity vehicles for the Loop system will also be coming in the future. As it turned out, the advent of the pandemic during the buildout of the Las Vegas Convention Center Loop helped push officials to hold off on high-capacity vehicles. Teslas that carry three people are safer, after all, than a vehicle that carries 12 passengers during a pandemic.
But once the system expands and as FSD is rolled out to the Loop’s fleet, The Boring Company’s high-capacity vehicles are expected to be released. Hill noted that Elon Musk’s “Robovan” could be a good candidate for the Loop system’s high-capacity vehicles. Musk did note that Tesla’s Robovan will be highly configurable, so designing a version of the vehicle for The Boring Company’s Loop system should be no problem.
“You may have seen Elon tweeted out that he is working on a higher capacity vehicle, and it’s able to be modified for different applications. We think something along those lines, a version of that will be a part of this system,” Hill said.
For now, however, Hill told the Review-Journal that the current Tesla fleet deployed on the Las Vegas Convention Center and Vegas Loop is already useful. “You can use those higher-occupancy vehicles when you have a group of people who want to go from one place to the same place. Often folks don’t. The ability to have an individual car for people who want to go someplace different from where everybody else is going is an important aspect in the system. The higher occupancy vehicles will be helpful, too,” he said.
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News
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
Elon Musk
The real reason Elon Musk wants every car connected to space
Elon Musk says all cars will eventually need Starlink to handle massive AI bandwidth demand.
Elon Musk is making the case that satellite internet, not fiber or cellular towers, will end up wired into every car on the road. In a string of posts on X, the SpaceX CEO wrote that all cars will have Starlink in the future and called satellite connectivity the only way to get super high bandwidth to billions of vehicles.
The posts started with Musk endorsing a Cloudflare forecast that traffic generated by autonomous AI agents will soon dwarf traffic generated by humans browsing the internet, a shift he described as not a close call at all. From there he narrowed the argument to infrastructure, writing that the only system that can support the insanely fast bandwidth growth needed by AI is Starlink, before extending the logic to cars specifically.
AI agentic Internet traffic will obviously VASTLY exceed human usage. Not a close call at all.
Cloudflare’s forecast is accurate. https://t.co/VztgrinN5k pic.twitter.com/Wo4FiRKjPU
— Elon Musk (@elonmusk) August 9, 2026
The timing lines up with Tesla’s own hardware decisions. On July 20, Tesla confirmed the Cybercab would ship with a Starlink V5 terminal built into its roof, the first time the company had put satellite hardware in a production vehicle. A day later, Tesla’s head of AI, Ashok Elluswamy, explained the connection wasn’t there for safety and that Cybercab’s driving stack runs entirely on onboard cameras and compute, while the satellite link exists for navigation, customer service, and fleet management instead. Musk followed with his own post about the feature, saying riders would be able to watch 4K streaming video during rides.
By July 22, Musk had already said Starlink would extend beyond Cybercab to Tesla’s full lineup. Sunday’s posts push that same logic outward again, this time framed as a requirement across the industry rather than a feature specific to Tesla, and tied directly to the bandwidth AI systems are expected to consume.
SpaceX’s newest Starmind will make earth data centers obsolete
The AI argument has been building on SpaceX’s side for months. The company has an FCC filing pending for a third generation Starlink constellation, and it has separately proposed Starmind, a constellation of up to a million satellites designed to run AI computation directly in orbit rather than just relay data. Musk has said he expects space to become the cheapest place to deploy AI compute within two to three years. Starlink and Starmind serve different jobs inside that vision, one moving data and the other processing it, but Sunday’s posts treat vehicles as one more category of hardware that will eventually need both.
None of this changes anything for Tesla owners today. Cars already on the road keep running on LTE and Wi-Fi, and Tesla hasn’t outlined a retrofit path for existing vehicles. The July 22 commitment applies to future production, not the fleet already delivered. What Musk added on Sunday is the reasoning: satellite connectivity isn’t a Cybercab novelty, it’s a bet that ground based networks won’t keep up with how much data cars, robots, and AI systems are about to generate.
