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How will Tesla Version 8 compare to current Autopilot in the real world?

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Tesla’s upcoming Version 8 software will be the company’s most significant Autopilot upgrade since its October 2014 initial release, but how will these updates compare to current Autopilot behavior in the real world?

This will be the first time the company will switch from using the vehicle’s front-facing camera as the core hardware responsible for visual image recognition, to radar technology which will now become the primary sensor used in creating a virtual picture of the vehicle’s surroundings.

With these improvements, to be rolled out via an over-the-air software update in the coming weeks, Model S equipped with the Autopilot hardware suite and Model X should theoretically be able to handle emergency braking situations with more precision, provide a smoother Traffic Aware Cruise Control (TACC) experience, take highway exits on its own, and provide drivers and passengers with an overall safer experience.

Let’s take a look at each of these features and see how Autopilot in Version 8 will differ from current Version 7 capabilities.

Automatic Emergency Braking

Following the much publicized death of Joshua Brown after his Model S crashed into the side of a tractor trailer while driving on Autopilot, reliability of Autopilot’s Automatic Emergency Braking (AEB) feature was immediately put to question. Tesla released a statement stating that the high, white side of the tractor trailer, combined with a radar signature that would have looked very similar to an overhead sign, caused automatic braking not to fire. “Since January 2016, Autopilot activates automatic emergency braking in response to any interruption of the ground plane in the path of the vehicle that cross-checks against a consistent radar signature,” said Tesla.

Spy shots taken from the Naval Air Station reveal Tesla was testing and calibrating its AEB system this past summer. But despite the tests which seemingly show a Model S automatically braking in a staged collision event, Tesla has been overly cautious when it comes to activation of its AEB feature. AEB is reliant on imagery received from its front-facing camera, and supplemented by radar input, to decide on the degree of confidence that would trigger a braking event.

Some Tesla owners have even taken it upon themselves to stage scenarios that would seemingly trigger the AEB response of the vehicle, but to no avail leaving further mystery as to how AEB works.

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The current Autopilot system under Version 7 is limited in its ability to reliably detect people or pinpoint false positives such as reflective objects that may appear larger than they are. Tesla uses the concave bottom of a soda can as an example. When the radar signal is reflected back from the can’s bottom dish-shaped surface, the reflected signal is amplified to many times its actual size leading the radar to believe there’s a large object before it. Because of that, programming the AEB system to suddenly engage could lead to a dangerous situation so Tesla decided to limit the scenarios that could actually trigger an automatic emergency braking response.

However, Version 8 will combine the power of fleet learning with “radar snapshots” to improve the vehicle’s ability to more accurately depict the circumstances of an event. In other words, we can expect Autopilot under Version 8 to have a much higher degree of confidence when it comes to engaging automatic emergency braking. Tesla CEO Elon Musk believes this set up will provide safety improvements by a factor of three over existing Autopilot.

Traffic Aware Cruise Control

Tesla-Autopilot-Traffic-Rain

Beyond being able to track a vehicle that’s directly in front of the car, Version 8 of Autopilot will also be able to see the vehicle ahead of that. Tesla describes this update as follows: Tesla will also be able to bounce the radar signal under a vehicle in front – using the radar pulse signature and photon time of flight to distinguish the signal – and still brake even when trailing a car that is opaque to both vision and radar. The car in front might hit the UFO in dense fog, but the Tesla will not.

The improvement will lead to smoother braking events when TACC is engaged since Autopilot will no longer solely rely on the actions from the vehicle before it. If a hard braking event happened in front of the vehicle that Autopilot is immediately tracking, Version 8 will be able to identify it and slow the Model S (or Model X) even before the vehicle directly ahead may have applied the brakes.

The following video captures an incident whereby the vehicle being tracked by Version 7 of Autopilot could not see the hard braking event that took place two cars ahead. TACC seemingly did not have enough time to stop the Model S.

Being able to see two cars ahead in Version 8 will provide a smoother TACC experience and increased safety.

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Improved Auto Lane Change and Freeway Exiting

What we’re particularly excited about is the new feature in Version 8.1 that will allow an Autopilot-equipped Model S and Model X to take highway exits using the onboard navigation system.

Currently, Version 7 of Autopilot is capable of handling lane changes when the driver explicitly uses the turn signal stalk. Signaling left and the vehicle will make a left lane change, and vice versa. However with the ability to punch in a destination through Tesla Nav and have the vehicle assist with freeway exiting, assuming that’s part of the route, in our minds, Tesla is taking a critical step towards the ultimate goal of building fully autonomous self-driving vehicles. It’s a small step, but nonetheless it’s a notable step.

Photo credit: Rob M.

Full details of Tesla Version 8 can be found here.

Gene has been obsessed with cars since before he could legally sit in the front seat. Writer, researcher, unofficial CS support, accountant, native suit guy when needed, and overall stick poker. He approaches every story the way he approaches a road trip: with too much enthusiasm, not enough planning, and a surprisingly good outcome. gene@teslarati.com

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SpaceX has solved Starship’s biggest challenge, Elon Musk says

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Credit: SpaceX

Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.

During the company’s first-ever Earnings Call, the SpaceX CEO stated:

“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”

Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.

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During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.

The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.

These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.

Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.

Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.

Elon Musk sheds two new bits of detail on Starship after 13th test launch

Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.

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Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.

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SpaceX is coming for wireless giants with Starlink Mobile

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elon musk phone

SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.

Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”

SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.

Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.

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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.

Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.

These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.

Tesla Phone rumors clarified by CEO Elon Musk

No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.

The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.

While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.

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Investor's Corner

SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles

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SpaceX Starship V3 flight 12
SpaceX Starship V3 flight 12 (Credit: SpaceX)

Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.

Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”

SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.

SpaceX and Nvidia team up on Musk’s orbital AI bet

By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.

Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.

Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.

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CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.

On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”

SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.

The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.

The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.

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