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Tesla Makes Major Update to Autopilot

Tesla Motors Inc. (NASDAQ:TSLA) has announced major upgrades to its Autopilot system are coming, just a few months after a driver using the system died in a tragic collision.

The new Autopilot system will lean more on radar to give the vehicle a better sense of what’s around it. It will be able to detect large objects like other vehicles or animals, wrestling control of the car from human drivers to apply the brakes.

Perhaps the biggest change drivers will see with the new Autopilot system are a series of new restrictions. After the fatal collision in May, many people were concerned Tesla drivers were depending on the new technology too much.

So Tesla made one notable change, and that is introducing a series of warnings that will require drivers to periodically take back control of the car. If the driver doesn’t comply, the Autopilot system will temporarily prevent drivers from accessing Autopilot.

Tesla is desperate to show regulators its Autopilot system is safe. In June, once regulators learned about the fatal accident, they opened up an official investigation. No results of the investigation have been announced yet, but regulators are aware of the new Autopilot changes.

CEO Elon Musk officially announced the upgrades on Sunday. They’ll be available to Tesla owners in a week or two through an over-the-air software update.

Tesla shares rallied in trading on Monday morning, increasing $4.65 each or 2.4% to $199.12. The company is flirting with a three-month low, but is comfortably above its 52-week low price of $141.05.