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Roadrunner and Wile E Coyote
The never-ending chase (BSR Agency/Getty Images)
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YouTuber runs a Tesla through a fake wall to poke a hole in its camera-only, no-lidar strategy

The Tesla ran straight into a wall painted to look like its surroundings. A non-Tesla with lidar stopped easily.

Jon Keegan

In the classic “Looney Tunes” cartoons, the Road Runner is constantly evading capture by the tireless Wile E. Coyote, who sets elaborate (and fruitless) traps to snare the clever bird. One of the most famous tricks Wile E. conjured was to paint a fake tunnel on a rock wall, hoping the Road Runner’s eyes would be fooled and he would smash into the wall.

It turns out this trick appears to work on Teslas.

Former NASA engineer turned YouTuber Mark Rober published a new video over the weekend that tests a camera-only Tesla against a lidar-equipped vehicle to see how the Tesla’s “autopilot” braking system responds to the optical illusion of a wall thats camouflaged to look like a seamless view of the road ahead.

About 10 years ago, as CEO Elon Musk was seeking to cut down on the costs of Teslas, he make a radical decision to use only visible-light cameras for monitoring objects in the road ahead, as opposed to the more costly, but more accurate, lidar systems. Lidar (light detection and ranging) — which is used on Alphabet’s Waymo self-driving cars — shoots out infrared lasers that can detect objects in the dark, through fog, and in other conditions that would obstruct visible light.

At the time, Musk defended his decision to go all in with visible light cameras by pointing to the power of AI to detect pretty much any object on the road, thanks to its firehose of training data, which it collects from millions of connected Tesla vehicles on the road.

But recent reports have called attention to what appear to be failings of the camera-only system in a series of accidents that have led to multiple injuries and even a death.

Rober’s video presents an easy-to-understand, powerful illustration of Tesla’s potential limitations when it encounters such obstructions in the road. Rober’s tests also showed that the camera-only system had a hard time seeing a dummy of a child in heavy fog and a deluge of water (which, to be fair, you would probably never experience unless you were driving under a waterfall, similar to the idea that you probably won’t encounter a wall thats painted to look like its surroundings).

Rober’s Tesla did stop safely in a few of his tests. It stopped when a stationary child dummy was in the center of the road in plain daylight, when the dummy popped out from behind a vehicle, and when the dummy was backlit with extremely bright floodlights.

Tesla has been on a downswing of late, as the stock has lost half its value in the past three months, sales are dropping alarmingly in Europe, and Musk’s DOGE side quest appears to be consuming all of his time and attention.

Tesla shares were down more than 5% today.

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Driverless Waymo struck a child near school in California

A Google Waymo struck a child near a Santa Monica elementary school during morning drop-off last week, as self-driving cars by Waymo, Tesla, and others continue their expansion across the country. In a blog post, Waymo said the fully driverless car detected the child as they emerged from behind a parked SUV, braked sharply, and reduced speed from approximately 17 mph to under 6 mph before striking the child. The child suffered minor injuries and walked away.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

The company reported the incident to the National Highway Traffic Safety Administration, which is currently investigating, adding fresh scrutiny to how robotaxis perform in the wild.

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Digging into Microsoft’s cloud backlog

Microsoft’s Azure cloud computing unit is seeing huge demand. In yesterday’s second-quarter earnings call, Microsoft CFO Amy Hood said the company’s commercial bookings increased 230% thanks to large commitments from OpenAI and Anthropic and healthy demand for its Azure cloud computing platform.

Hood said that the company’s “remaining performance obligations” (RPO) ballooned to a staggering $625 billion, up 110% from the same period last year. How long will it take for Microsoft to fulfill these booked services? Hood said the weighted average duration was “approximately two and a half years,” but a quarter of that will be recognized in revenue in the next 12 months.

Shares of Microsoft tanked today, down over 11%, despite the strong beat on revenue and earnings. Investors may be concerned that while huge, that extra demand was coming only from OpenAI, an issue that Oracle recently experienced.

But Hood said the non-OpenAI RPO still grew 28% year on year, which reflects “ongoing broad customer demand across the portfolio.”

US-ART-BASEL

Meta and Tesla are funding the future with their core businesses — but only one of them is still growing

The two tech giants, on back-to-back earnings calls, made it sound like they’re selling the same AI-powered future. But the picture of the underlying businesses, and how they’re using AI to furnish current sales, couldn’t be more different.

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