Chapter 135

Musk makes a controversial decision to remove radar from Tesla's Autopilot system in early 2021, relying instead on camera-only vision, triggering public criticism and regulatory scrutiny. However, his engineering team continues developing an advanced radar system (Phoenix) that eventually convinces him to reconsider the approach for Tesla's premium vehicles.

In January 2021, facing microchip shortages from COVID and a failing in-house radar program (Phoenix), Musk declares Tesla must either halt production, fix Phoenix immediately, or delete radar entirely. He chooses deletion, dismissing radar as a "terrible crutch" and insisting that camera-only vision is sufficient for autonomous driving. Automotive president Jerome Guillen objects on safety grounds, but after Musk's coldly angry ultimatum—"If you won't remove it, I will get someone else who will"—Guillen eventually leaves the company. On January 22, 2021, Musk emails the company to disable radar, claiming camera-only driving is working well. The decision sparks significant controversy: a New York Times investigation reveals Tesla engineers have serious doubts about safety, critic Edward Niedermeyer argues Tesla is moving backward while the industry adopts LiDAR and thermal imaging, and software entrepreneur Dan O'Dowd takes out a full-page Times ad calling Tesla's system "the worst software ever sold by a Fortune 500 company." The National Highway Traffic Safety Administration intensifies investigations, recording 273 accidents by Tesla drivers using driver-assist systems, including five fatalities, and opens probes into eleven crashes involving emergency vehicles. During an internal meeting about using camera data to prove driver error in crashes, Musk clashes with a privacy team member, dismissively declaring himself the sole decision-maker and questioning the existence of privacy teams. Ultimately, Musk permits his engineering team to continue developing Phoenix under Pete Scheutzow, a Danish engineer. When Scheutzow's team creates a sophisticated radar system targeting scenarios where human drivers cannot see obstacles, Musk secretly authorizes its trial in premium Model S and Model Y vehicles, saying the new system is "much more sophisticated" than standard automotive radar, comparable to weapons-system technology. He remains open to evidence-based reconsideration.