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