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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.

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

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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.

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.

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.”

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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.

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.

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.

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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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Investor's Corner

SpaceX reports beat in first earnings while minimizing losses

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Credit: SpaceX | X

SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.

After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.

Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.

SpaceX to report first-ever earnings today: here’s what to expect

Earnings Results

  • Revenues: $7.8 billion reported vs. $6.7 billion expected
  • Adjusted EBITDA: $3.5 billion vs. $2 billion expected
  • Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion

Additionally, CFO Bret Johnsen had these comments:

“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”

Space Business Highlights

SpaceX shared some of its biggest Space Business Highlights for Q2:

  • Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
  • Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
  • Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
  • Starship V3 development continued to advance towards full and rapid reusability:
    • Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
    • Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield

SpaceX will report its earnings today at 4:30 P.M. EDT.

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Elon Musk sends second warning to SpaceX shorts ahead of first earnings

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Credit: Grok Imagine

Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …

The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.

This marks the second such message from Musk in under three weeks.

On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.

Elon Musk sends first warning to SpaceX short sellers

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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.

SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.

Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.

As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.

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Tesla’s AI lead doubles down on FSD’s speed strategy, and owners are confused

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Credit: Tesla

Tesla’s AI lead Ashok Elluswamy doubled down on the company’s strategy regarding Full Self-Driving’s speed settings, and owners are definitely confused.

Earlier versions of Full Self-Driving allowed owners to set a max speed that the vehicle could travel while operating under the semi-autonomous driver assistance platform. This allowed more customization for the driver, giving them the ability to experience FSD’s robust performance with their own personal preferences.

Speed is massively important for obvious reasons — it’s not only a question of keeping the vehicle occupants comfortable by traveling at a safe speed, but it’s also something that could contribute to a ticket or infraction from law enforcement.

With the release of FSD v14 last year, Tesla removed the ability to set a max speed and instead opted for five Speed Profiles, ranging from “Sloth,” the most conservative, to “Mad Max,” the most aggressive and spirited. These profiles not only control speed, but also how frequently the vehicle will execute passes, perform lane changes, and other contributing factors.

The removal of the Max Speed setting was a major complaint amongst the Tesla community because it left owners scrambling for a way to experience suitable behaviors while traveling at an appropriate speed. Most felt the driving profiles would be a good indicator of the behaviors, while speed would still be left up to the discretion of the driver.

Instead, Tesla’s Speed Profiles determine both, and the constant tinkering of how they behave has been a major bottleneck and point of confusion for both owners and the company. From update to update, the Speed Profiles will change, sometimes more drastically than others. Some owners have complained that the “Standard” profile is too fast, while others have experienced “Mad Max” traveling below the speed limit:

These things change with each update, but the big complaint is that owners are on the hook for any tickets that come from FSD’s infractions; that’s the caveat of the suite being named FSD (Supervised). It ultimately means the driver is responsible, and the automaker has no liability when it comes to speeding tickets or general traffic infractions.

It is the driver’s responsibility to take over or adjust based on this.

Elluswamy essentially confirmed that there are no plans to bring back Max Speed control, because it is what he referred to as “an anti pattern.” He then echoed something that CEO Elon Musk has started to really push with FSD, and that’s the idea that Tesla is really honing in on the preferences of the driver.

Owners were confused by Tesla’s decision, stating that there must be a better way, especially considering disengagements for incorrect speeds are common:

From personal experience and using FSD for over 72 percent of my driving miles since v14 was released late last year, I make Speed Profile adjustments constantly. If FSD is traveling a tad too quickly, I will scale it back, and if it’s too conservative, I’ll make it more aggressive.

I don’t complain about making the Speed Profile changes too frequently, but it would certainly be nice to have it happen less frequently. There are far too many times I am concerned about getting a ticket, even in Standard mode.

The biggest issue for me, personally, which seems to be echoed throughout the community, is the fact that Tesla’s goal is to minimize disengagements. Many drivers are stating that speed is a major reason for disengagements.

However, Tesla is not willing to bring back this one level of input because it would technically be a regression.

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Whether it’s right or wrong in your opinion, it is what Tesla is going with, and it seems like it has pivoted quite a bit from its other strategies for minimizing interventions by pushing its AI to behave in a way that would fit the occupant’s personal preferences.

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