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Rani Molla6/4/25

Ahead of Tesla’s robotaxi launch, video from a fatal full self-driving accident shows the shortfalls of relying on cameras only

Driverless Tesla robotaxis may soon be funneling select passengers down the streets of Austin, Texas, but video from a fatal 2023 accident in which the driver was employing the car’s full self-driving software shows the potential limits of the technology even with a driver in the seat.

Bloomberg just published harrowing video footage from the accident for the first time, showing how in the glare of the sun the Tesla managed to miss numerous cues — cars pulling over, hazard lights, a person waving — alerting a traffic accident ahead. Human drivers saw these signals and slowed, but the Tesla plowed ahead at 65 mph and struck and killed a grandmother. Read the whole thing here, but one major takeaway:

While presumably Tesla’s technology has advanced a lot since the footage, its hardware hasn’t. Unlike Google’s Waymo, which has expensive lidar and radar in addition to numerous cameras in each car, Tesla vehicles still depend solely on cameras.

When asked on Tesla’s latest earnings call about how the company plans to overcome visual impairments like the sun, Musk said, “Actually, it does not blind the camera,” citing a “breakthrough that we made some time ago.”

Musk’s explanation of the breakthrough, however, “perplexed” a former vehicle development engineer Bloomberg asked about it.

A Fatal Tesla Crash Shows the Limits of Full Self-Driving

A Fatal Tesla Crash Shows the Limits of Full Self-Driving

Bloomberg just published harrowing video footage from the accident for the first time, showing how in the glare of the sun the Tesla managed to miss numerous cues — cars pulling over, hazard lights, a person waving — alerting a traffic accident ahead. Human drivers saw these signals and slowed, but the Tesla plowed ahead at 65 mph and struck and killed a grandmother. Read the whole thing here, but one major takeaway:

While presumably Tesla’s technology has advanced a lot since the footage, its hardware hasn’t. Unlike Google’s Waymo, which has expensive lidar and radar in addition to numerous cameras in each car, Tesla vehicles still depend solely on cameras.

When asked on Tesla’s latest earnings call about how the company plans to overcome visual impairments like the sun, Musk said, “Actually, it does not blind the camera,” citing a “breakthrough that we made some time ago.”

Musk’s explanation of the breakthrough, however, “perplexed” a former vehicle development engineer Bloomberg asked about it.

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Tesla and Google’s Waymo to Senate committee: Fix self-driving laws or China will win

Ahead of their appearances Wednesday at a Senate committee hearing on the future of self-driving, the two biggest names in the sector, Tesla and Google’s Waymo, are talking the same book.

Both companies are warning lawmakers that without a federal framework for autonomous vehicles — something Congress has debated for years and is now considering again as part of broader transportation legislation — China will seize the lead.

“The United States is locked in a global race with Chinese AV companies for the future of autonomous driving, a trillion-dollar industry comparable in strategic importance to flight and space travel,” Waymo Chief Safety Officer Mauricio Peña said in written remarks ahead of the event. “In the absence of US leadership on a national AV legislative framework, Chinese AV competitors will fill the gap and set the safety and technical standards for the rest of the world.”

Tesla Vice President of Vehicle Engineering Lars Moravy, for his part, wrote, “If the US does not lead in AV development, other nations — particularly China — will shape the technology, standards, and global market.” He added, “China will be the dominant manufacturer of transportation for the 21st century.”

The two companies face steep competition from Chinese firms, including Baidu, which operates a robotaxi service, and BYD, whose EVs offer driver assistance technology similar to Tesla’s Full Self-Driving and which has been outselling the US automaker.

Hit the Road, Mac: The Future of Self-Driving Cars

Hit the Road, Mac: The Future of Self-Driving Cars

Both companies are warning lawmakers that without a federal framework for autonomous vehicles — something Congress has debated for years and is now considering again as part of broader transportation legislation — China will seize the lead.

“The United States is locked in a global race with Chinese AV companies for the future of autonomous driving, a trillion-dollar industry comparable in strategic importance to flight and space travel,” Waymo Chief Safety Officer Mauricio Peña said in written remarks ahead of the event. “In the absence of US leadership on a national AV legislative framework, Chinese AV competitors will fill the gap and set the safety and technical standards for the rest of the world.”

Tesla Vice President of Vehicle Engineering Lars Moravy, for his part, wrote, “If the US does not lead in AV development, other nations — particularly China — will shape the technology, standards, and global market.” He added, “China will be the dominant manufacturer of transportation for the 21st century.”

The two companies face steep competition from Chinese firms, including Baidu, which operates a robotaxi service, and BYD, whose EVs offer driver assistance technology similar to Tesla’s Full Self-Driving and which has been outselling the US automaker.

Waymo is now worth $126 billion, after raising $16 billion in a funding round led by its parent company, Google. With this capital, Waymo plans to expand its robotaxi service to more than 20 new cities, including international markets.

On Wednesday, Waymo’s chief safety officer will testify at a Senate Committee on Commerce, Science, and Transportation hearing, alongside a representative for Tesla, urging lawmakers to create a national regulatory framework for autonomous vehicles.

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Dan Ives thinks Tesla will someday merge with SpaceX, too

Wedbush Securities analyst Dan Ives is just like us: he thinks that Elon Musk’s Tesla and SpaceX could someday become one company.

In a note this morning, Ives argued there’s a “growing chance” Tesla will eventually merge in some form with newly merged SpaceX and xAI, as Musk builds what he sees as a single, sprawling AI ecosystem spanning both space and Earth.

Over time, Ives wrote, he thinks Musk will look to “combine forces/technologies,” with the long-term goal of owning and controlling more of the AI stack. Ives thinks Musk could achieve that “holy grail” over the next year and a half.

Earlier today, we pointed out the myriad similarities between Tesla and SpaceX — shared impossible missions, common methods for achieving those goals, and a physics-first, economics-later ethos — as well as Musk’s long-standing penchant for knitting his companies together in the first place.

SpaceX and Tesla are sounding very similar these days

SpaceX and Tesla are sounding very similar these days

Over time, Ives wrote, he thinks Musk will look to “combine forces/technologies,” with the long-term goal of owning and controlling more of the AI stack. Ives thinks Musk could achieve that “holy grail” over the next year and a half.

Earlier today, we pointed out the myriad similarities between Tesla and SpaceX — shared impossible missions, common methods for achieving those goals, and a physics-first, economics-later ethos — as well as Musk’s long-standing penchant for knitting his companies together in the first place.

SpaceX and Tesla are sounding very similar these days

Elon Musk’s AI rocket company has a lot in common with his AI vehicle company.

Donald Trump Watches SpaceX Launch Its Sixth Test Flight Of Starship Spacecraft

Elon Musk laughing

SpaceX merges with xAI, reportedly will seek an IPO valuation of $1.25 trillion

Elon Musk says his space company has merged with his AI company, with the lofty goal of eventually putting data centers in space.

Nate Becker2/2/26

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