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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.
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.
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.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
