It turns out that Tesla’s FSD Bet actually does stop for kids and pedestrians as demonstrated in a video with both a mannequin and an actual child. Recently, the founder of the Dawn Project who is also the CEO of Green Hills Software, which makes automated driving systems, Dan O’Dowd, claimed that Tesla’s FSD Beta did not stop for a child-sized mannequin. This led to a mainstream media storm against Tesla and its life-saving technology.
Tesla owner and FSD Beta Tester, @WholeMarsBlog asked if there were anyone in the Bay Area with a child who could run in front of his car while FSD Beta was engaged. Many took this as a joke, however, The Verge published an open letter to @WholeMarsBlog asking him not to do this.
It turned out that there was someone in the Bay Area willing to allow his child to put Tesla’s FSD Beta to the ultimate test. And it should be noted that the person who allowed this was the driver during the test.
In a Twitter DM, @WholeMarsBlog told me:
“Our tests showed that Tesla Full Self-Driving Beta has no problem detecting pedestrians of all ages. As long as the driver is paying attention, which the system ensures, there is no risk to pedestrians even in the event that the software fails to detect them.”
“This is driver assistance and is not expected to be perfect. It sickens me that Dan O’Dowd would push harmful misinformation to benefit himself financially. He should be charged criminally for false advertising, along with any stations that ran his ads. I don’t have millions to spend on ads like Dan, so please share the video on social media so that everyone who saw Dan’s ad can see our test too.”
Tesla FSD Beta doesn’t hit the mannequin or the child.
In a series of tests involving a child-sized mannequin dressed up and later on a child, Tesla’s FSD Beta proves to not do as O’Dowd claimed it would do.
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During the first test, the mannequin was standing in the middle of the street and the car wouldn’t move once FSD Beta was turned on. After moving the mannequin further down the road, the group engaged FSD Beta and it slowly began to move forward.
Once it got closer to the mannequin, it slowed down and came to a complete stop. @WholeMarsBlog showed a detailed look at the screen which showed that Tesla’s FSD Beta detected a pedestrian in the street. It should be noted that, unlike O’Dowd’s video, there were no cones on either side of the vehicle blocking the car from moving around the mannequin.
In the next test, they moved the mannequin a little to the right. The vehicle not only recognized that there was a pedestrian in the street but easily moved around it safely.
Testing Tesla’s FSD Beta with People
In the next series of tests, one of the members of the group, Alvey, participated. Alvey stood in the middle of the street and FSD Beta immediately recognized Alvey as a pedestrian and came to a complete stop at a safe distance. Next up, Alvey walks in front of the car as it’s driving and the car immediately stopped.
In the next test, Tad Park, the CEO of Volt Equity took the driver’s seat. Tad said that he trusted the system enough and has tried FSD Beta previously.
“I would trust my kids’ lives with it and so I’m very confident that it’s going to detect my kids. And then, I’m also in control of the vehicle so I can brake at any time.”
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Not only does Tesla’s FSD Beta detect Tad’s son, but it stopped for him. In the next test, Tad’s son crossed the street in front of the moving vehicle. Again, FSD Beta recognized what was happening and reacted accordingly. It slowed down and @WholeMarsBlog pointed out that it waited for him to cross and then continued on.
Attempting to run the mannequin over at a higher speed
The next test was for them to run the mannequin over at a higher speed. They moved it far enough that it was almost out of view but Tesla Vision still detected it. They accelerated to 40 miles per hour but instead of hitting the mannequin, FSD Beta slowed down and moved over to the right.
“It’s not like the commercials you see on TV.”
The video disproves the claim that Tesla FSD Beta will hit kids and do so repeatedly. You can watch it below.
https://www.youtube.com/watch?v=Fu4ZEnIwYZI
Disclaimer: Johnna is long Tesla.
I’d love to hear from you! If you have any comments, concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter @JohnnaCrider1
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Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
