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Virtual reality haptic “smart suit” uses AI with biometrics to simulate real-world environments
One of the innovative future technologies that was on display at this year’s Consumer Electronics Show (CES 2019) in Las Vegas is the Teslasuit, a full body virtual reality haptic suit that delivers real sensations to users that mimic the environment of a digital simulation or game. In a haptic feedback system, stimuli are used to provoke real sensations involving touch – shocks, punches, pushes, bumps, etc. Teslasuit combines this sort of environmental feedback along with climate control, motion capture, and biometric systems to give a fully responsive, immersive experience to the user. Combined with true-to-life virtual reality graphics, this device could finally provide the experience VR was intended to have since its development began.
The full-body sensations of the Teslasuit seem to indicate a new level of experience for virtual reality users, but the haptic capabilities aren’t the only things making it stand out. The suit’s biometric system is designed to use machine learning to analyze heart rate, stress levels, and overall mental and emotional states to create experiences catered to the user. How this capability will be implemented is really up to game developers, though. As data is gathered from biometrics, capabilities will follow. “This is very important for the gaming industry. We see that in the future, when we come to the end user market, that we will be able to offer a lot of data sensing for the developers to process, for the AI itself to adjust the game to the player,” Dimitri Mikhalchuk, co-founder of Teslasuit, explained in an interview with Digital Trends. The suit was first officially unveiled at CES 2018.
Teslasuit uses 68 channels embedded throughout the suit’s fabric to deliver electrical stimulations, and the company is working to expand on that number. Also included in the suit’s software is a haptic library, enabling game developers to create their own effects to correspond with their virtual worlds. The climate control system adjusts the temperature of the suit, heating and cooling in accordance with the virtual environment. Finally, its motion capture and avatar system track motions from the users entire body to interact with virtual environments (and built with multiple players in mind), something that’s more or less an expansion on the core of VR to begin with.
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- The haptic Teslasuit as imagined in a VR game environment. | Credit: Teslasuit
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- The haptic Teslasuit. | Credit: Teslasuit
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- The haptic Teslasuit. | Credit: Teslasuit
While the Teslasuit brings virtual worlds closer to a potentially action-packed reality, bruises are not part of the experience, according to Mikhalchuk. The electric stimulation is matched to the users own strength, adapting its responses to the input. In other words, the force a user “hits” with in a game is the amount of force used to “hit” back, i.e., electric pulses make the muscles contract within that range.
With the equivalent of a full body shocking device wrapped around players, the question of security arises, yet another thing Teslasuit has addressed in its design. Its software has military grade encryption (AES 256) built into its wireless control system to ensure users’ bodies are not (literally) hacked into. Among its many features, Teslasuit is also completely wireless, boasts a 10+ hour battery life, and is machine washable (important for sweat-inducing virtual scenarios and general funk from frequent wear). A summary of the device on the Teslasuit website reads like something from a science fiction movie:
A highly developed form of computer modeling allows an operator to immerse in the artificial world. The user can act directly in it with the help of special sensory devices that link movements with audio-visual effects. In this case, the user’s visual, auditory, tactile, and motor sensations are replaced by their imitation, generated by a computer system with full body haptic VR suit. At the same time, biometric system of the Teslasuit analyzes human performance and health (workforce and human performance analytics). – Teslasuit.io
The future of augmented reality and virtual reality applications have been explored in fictional storylines over the years with the most recent and directly relevant one being the haptic system imagined in the movie Ready Player One. The Battlestar Galactica prequel series “Caprica” also imagined an immersive virtual world that users could “feel” experiences in (or otherwise do things they wouldn’t/couldn’t in the real world), but that didn’t require a suit, just a mind. In an episode of Netflix’s Black Mirror series called “Playtest”, an American traveler in the UK signs up to demo an immersive VR horror game to earn some money. Unlike the Teslasuit, however, the experience in that episode involved an implant to the user’s neck called a “mushroom” which linked up the VR experience with a user’s brain. The Matrix also suggested an immersive environment, although people weren’t exactly voluntarily involved, if they ever knew it wasn’t real to begin with.
Other than gaming, Teslasuit is suggestive of several solutions for non-entertainment industries. According to an article on their company website, several VR-training solutions were available for demonstration at CES 2019: Astronaut VR-training in an ISS module, an oil-loading ramp operation VR-simulator, emergency evacuation VR-training, and a powerplant VR training simulator. Teslasuit is currently continuing its outreach and collaboration with game companies to develop content. Its software development kit and corresponding system tools and applications are included with the purchase of the suit which began shipping B2B in the third quarter of 2018.
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Watch the below video for a first-hand review of Teslasuit:
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.
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.
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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.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
