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Tesla to roll out ‘Enhanced Autopilot’ that uses new self-driving ‘Hardware 2’
Tesla has announced that all current Tesla Model S and Model X vehicles coming off the production line, as well as the future Model 3, will be equipped with hardware to allow the vehicle to achieve Level 5 autonomy and drive completely on its own without human input. Each Tesla vehicle will have a 360 degree view of its surroundings through the use of 8 cameras and a new computer that has forty times the processing power as current generation hardware. The new update which the company is referring to as “Full Self-Driving Capability”, or what Elon Musk refers to as “Hardware 2” cars, has shifted focus away from the current generation Autopilot “Hardware 1” vehicles. In place of the original Autopilot is an upgraded version of the driving-assist feature, now referred to as “Enhanced Autopilot”.
Tesla Enhanced Autopilot is being offered as a $5,000 option at the time of purchase, or $6,000 after delivery, and will have all of the same features as the current generation of Autopilot, but with far greater accuracy. According to the feature description on Tesla’s Model S and Model X Design Studio, Enhanced Autopilot “will match speed to traffic conditions, keep within a lane, automatically change lanes without requiring driver input, transition from one freeway to another, exit the freeway when your destination is near, self-park when near a parking spot and be summoned to and from your garage”.
The existing Autopilot feature under Version 8.0 has been under scrutiny after some owners reported poor lane keeping abilities, inability to exit freeways and unpredictable vehicle movement and braking. But with 8 cameras and 12 upgraded ultrasonic sensors that have nearly twice the range of those found in prior versions of Autopilot, new “Hardware 2” equipped vehicles will be able to monitor activity around the vehicle, including blind spots. Forward-looking side cameras mounted to the vehicle will be able to track cars that unexpectedly enter into a driver’s lane. The side cameras will also provide another level of safety for the driver when entering into an intersection or four way stop. In addition, rear-side cameras will detect vehicles that approach from rear blind spots, thus allowing for safer lane changes, especially when merging into traffic.
Despite the increased safety measures, Tesla notes that Enhanced Autopilot is still a driver’s assistance feature and drivers are responsible for maintaining control of their vehicles at all times.
In terms of when owners can expect Enhanced Autopilot to be ready for use, Musk says an over-the-air update will take place at the end of the year subject to regulatory approvals. Musk notes that Hardware 1, or current generation Autopilot vehicles, will initially be better than Hardware 2 cars, but the two systems will have feature parity come December 2016.
“It’ll take us some time into the future to complete validation of the software, and obviously get through required regulatory approval,” Musk told press. “But the important thing is that the foundation is laid for cars to be made fully autonomous, at a safety level of at least twice that of a person, maybe better.”
Elon Musk shared an incredible detail about Tesla Cybercab’s potential efficiency, as the company has hinted in the past that it could be one of the most affordable vehicles to operate from a per-mile basis.
ARK Invest released a report recently that shed some light on the potential incremental cost per mile of various Robotaxis that will be available on the market in the coming years.
The Cybercab, which is detailed for the year 2030, has an exceptionally low cost of operation, which is something Tesla revealed when it unveiled the vehicle a year and a half ago at the “We, Robot” event in Los Angeles.
Musk said on numerous occasions that Tesla plans to hit the $0.20 cents per mile mark with the Cybercab, describing a “clear path” to achieving that figure and emphasizing it is the “full considered” cost, which would include energy, maintenance, cleaning, depreciation, and insurance.
Probably true
— Elon Musk (@elonmusk) January 22, 2026
ARK’s report showed that the Cybercab would be roughly half the cost of the Waymo 6th Gen Robotaxi in 2030, as that would come in at around $0.40 per mile all in. Cybercab, at scale, would be at $0.20.
Credit: ARK Invest
This would be a dramatic decrease in the cost of operation for Tesla, and the savings would then be passed on to customers who choose to utilize the ride-sharing service for their own transportation needs.
The U.S. average cost of new vehicle ownership is about $0.77 per mile, according to AAA. Meanwhile, Uber and Lyft rideshares often cost between $1 and $4 per mile, while Waymo can cost between $0.60 and $1 or more per mile, according to some estimates.
Tesla’s engineering has been the true driver of these cost efficiencies, and its focus on creating a vehicle that is as cost-effective to operate as possible is truly going to pay off as the vehicle begins to scale. Tesla wants to get the Cybercab to about 5.5-6 miles per kWh, which has been discussed with prototypes.
Additionally, fewer parts due to the umboxed manufacturing process, a lower initial cost, and eliminating the need to pay humans for their labor would also contribute to a cheaper operational cost overall. While aspirational, all of the ingredients for this to be a real goal are there.
It may take some time as Tesla needs to hammer the manufacturing processes, and Musk has said there will be growing pains early. This week, he said regarding the early production efforts:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Elon Musk
Elon Musk to attend 2026 World Economic Forum at Davos
The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink.
Elon Musk is poised to attend the 2026 World Economic Forum in Davos. The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink, signaling a thaw in Musk’s long-strained relationship with the event.
A late addition
Organizers of the World Economic Forum confirmed that Elon Musk was added shortly before the event to a Thursday afternoon session, where he was scheduled to speak with Fink, as noted in a Bloomberg News report. Musk’s upcoming appearance marks Musk’s first participation in the forum, which annually draws political leaders, business executives, and global media to Davos, Switzerland.
Musk’s attendance represents a departure from his past stance toward the event. He had been invited in prior years but declined to attend, including in 2024. His upcoming appearance followed remarks from his political ally, Donald Trump, who addressed the forum earlier in the week with a wide-ranging speech.
A previously strained relationship
Musk had frequently criticized the World Economic Forum in the past, describing it as elitist and questioning its influence. In earlier posts, he characterized the gathering as “boring” and accused it of functioning like an unelected global authority. Those remarks contributed to a long-running distance between Musk and WEF organizers.
The forum previously said Musk had not been invited since 2015, though that position has since shifted. Organizers indicated last year that Musk was welcome amid heightened interest in his political and business activities, including his involvement in the Trump administration’s Department of Government Efficiency (DOGE). Musk later stepped away from that role.
Despite his friction with the World Economic Forum, Musk has remained central to several global events, from SpaceX’s provision of satellite internet services in geopolitically sensitive regions through Starlink to the growing use of xAI’s Grok in U.S. government applications.
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Tesla states Giga Berlin workforce is stable, rejects media report
As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla Germany has denied recent reports alleging that it has significantly reduced staffing at Gigafactory Berlin. As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla denies Giga Berlin job cuts report
On Wednesday, German publication Handelsblatt reported that Tesla’s workforce in Gigafactory Berlin had been reduced by about 1,700 since 2024, a 14% drop. The publication cited internal documents as its source for its report.
In a statement to Reuters, Tesla Germany stated that there has been no significant reduction in permanent staff at its Gigafactory in Grünheide compared with 2024, and that there are no plans to curb production or cut jobs at the facility.
“Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans. Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans,” Tesla noted in an emailed statement.
Tesla Germany also noted that it’s “completely normal” for a facility like Giga Berlin to see fluctuations in its headcount.
A likely explanation
There might be a pretty good reason why Giga Berlin reduced its headcount in 2024. As highlighted by industry watcher Alex Voigt, in April of that year, Elon Musk reduced Tesla’s global workforce by more than 10% as part of an effort to lower costs and improve productivity. At the time, several notable executives departed the company, and the Supercharger team was culled.
As with Tesla’s other factories worldwide, Giga Berlin adjusted staffing during that period as well. This could suggest that a substantial number of the 1,700 employees reported by Handelsblatt were likely part of the workers who were let go by Elon Musk during Tesla’s last major workforce reduction.
In contrast to claims of contraction, Tesla has repeatedly signaled plans to expand production capacity in Germany. Giga Berlin factory manager André Thierig has stated on several occasions that the site is expected to increase output in 2026, reinforcing the idea that the facility’s long-term trajectory remains growth-oriented.
Elon Musk shares incredible detail about Tesla Cybercab efficiency
Elon Musk to attend 2026 World Economic Forum at Davos
