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Tesla with sleeping driver proves there’s still misunderstanding and irresponsibility surrounding autonomy

Credit: KTLA 5

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Update: 11:06 AM EST: Paragraph 7 added to show the probability of the driver having a medical emergency. California Highway Patrol saw the vehicle and noted the driver was awake after catching up to the car.

A Tesla Model Y with a sleeping driver was recently spotted on the I-15 Freeway near Temecula, California, which proves that people and media still have a vast misunderstanding and irresponsible tone regarding the capabilities of semi-autonomous vehicles.

According to a report from KTLA 5, a woman in a Tesla Model Y was followed by another driver for more than fifteen minutes on the California interstate in an attempt to wake the woman who was taking advantage of the automaker’s semi-autonomous driving functions up.

The report and the incident prove there are still huge misunderstandings in the capabilities of semi-autonomous driving suites, including Tesla’s Full Self-Driving and Autopilot, which require users to remain vigilant and be prepared to take over the vehicle at any point.

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Drivers utilize semi-autonomous vehicle functionalities irresponsibly often, and social media has proven time and time again that people take advantage of the capabilities, even though they are not fully autonomous.

It is no secret that people and companies have utilized whatever they can to alleviate themselves of the responsibility of paying attention while the car operates some tasks on its own. With the introduction of advanced driver assistance systems (ADAS) over the past several years, drivers have taken advantage of the functions to instead play on their phones, read books, eat food, or even catch up on sleep.

Tesla’s camera-based driver monitoring system goes through the cellphone test

However, the risks that come with this behavior are potentially catastrophic. For one, those who use these functions irresponsibly put themselves and every other driver on the road at risk because if the vehicle needs assistance or encounters a situation where it would not react safely, the driver is responsible for taking over. Additionally, if an accident occurs, it can be framed as Tesla’s, or any other manufacturer’s fault, depending on the vehicle used, and instances like this can set the future of semi-autonomous and autonomous driving back years due to skepticism.

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There is the possibility that the driver had some type of medical emergency or accidentally fell asleep, in which the Tesla’s functionalities kept the operator and others safe. Police stated the driver was caught up to two minutes after receiving calls about the driver, and the driver was attentive at this time.

However, the media’s portrayal of the situation also proves that many are widely uninformed regarding the capabilities of Teslas. While Tesla’s Full Self-Driving suite has caused controversy over its name, the automaker continues to remind those who use it to remain vigilant, as the cars cannot truly drive themselves.

In Tesla’s FAQ section of the Autopilot and Full Self-Driving page, the company answers the question, “Do I still need to pay attention while using Autopilot?:”

“Yes. Autopilot is a hands-on driver assistance system that is intended to be used only with a fully attentive driver. It does not turn a Tesla into a self-driving car nor does it make a car autonomous.

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Before enabling Autopilot, you must agree to “keep your hands on the steering wheel at all times” and to always “maintain control and responsibility for your car.” Once engaged, Autopilot will also deliver an escalating series of visual and audio warnings, reminding you to place your hands on the wheel if insufficient torque is applied. If you repeatedly ignore these warnings, you will be locked out from using Autopilot during that trip.

You can override any of Autopilot’s features at any time by steering, applying the brakes, or using the cruise control stalk to deactivate.”

Media labeling the vehicle as “a self-driving Tesla” is a disservice to people and the company. Teslas do not drive themselves, as the vehicles are defined as Level 2, according to the Society of Automotive Engineers Levels of Driving Automation. Level 2 systems reiterate that the driver is still responsible for driving the car when these systems are activated. “You must constantly supervise these support features,” the SAE says. Level 3 to Level 5 systems maintain that the operator is not driving the car, but Level 5 systems are the only ones that are explicitly labeled as “self-driving.”

“This feature can drive the vehicle under all conditions,” the SAE table states.

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sae autonomy levels

Credit: Society of Automotive Engineers

Recent ratings by Consumer Reports showed that Tesla’s biggest flaw was driver monitoring. Many systems use cabin-facing cameras to monitor eye behavior to ensure the operator is keeping their eyes on the road. Teslas use a series of audible and visual cues to alert drivers of their inattentiveness, and steering wheel sensors make sure the driver keeps their hands on the wheel.

However, various cheat devices have been marketed across the internet, and in this instance, the driver appears to have their hands on the wheel while they are dozed.

Tesla activated camera-based driver monitoring in May 2021. “The cabin camera above your rearview mirror can now detect and alert driver inattentiveness while Autopilot is engaged,” Tesla said in the notes. Tests of Tesla’s driver monitoring tests showed the system was effective in some instances, especially when looking at cell phones, with alerts coming in 15 seconds.

The potential irresponsibility of users puts major risks to those on the road and the companies that develop these driver assistance programs. While there are workarounds through the previously-mentioned cheat devices, people have to know their irresponsibility could cost them, or others, their lives.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

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Credit: CNBC

Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.

CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.

Musk said:

“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”

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Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”

He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”

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Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.

The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.

Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”

Tesla alleged “driverless” crash in Texas: What is known so far

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“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.

This appears to be a similar situation. However, an investigation will prove what happened for sure.

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Investor's Corner

SpaceX makes $20 billion move to optimize its balance sheet

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Credit: SpaceX

SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.

The company announced an offering of senior unsecured notes expected to raise at least $20 billion.

The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.

According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.

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The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.

SpaceX officially acquires xAI, merging rockets with AI expertise

In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.

The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.

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SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.

Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.

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Elon Musk

SpaceX confirms third massive compute deal at Colossus data center

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Credit: xAI Memphis

SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.

Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.

CNBC first reported the deal.

This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.

SpaceX has previously signed significant compute deals with other major players.

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It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.

Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.

SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.

SpaceX makes first acquisition post-IPO

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These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.

Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.

The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.

For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.

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