- Two federal agencies are investigating a driverless Tesla crash that killed two passengers and may have been the result of an unattended Autopilot feature.
- Tesla CEO Elon Musk tweeted Monday that Autopilot was not enabled and that the car’s owner had not even purchased Full-Self Driving; however, authorities have not confirmed this and have only said no one was in the driver’s seat when the car crashed.
- Local authorities said they plan to issue search warrants to obtain the car’s data and definitively conclude whether Autopilot was enabled.
- The Washington Post projected that the ongoing federal investigations into the crash could lead to the potential government regulation of Autopilot features.
Driverless Crash Kills Two
Federal agencies are investigating whether or not an Autopilot feature is to blame for a deadly Tesla crash that happened over the weekend.
That incident occurred around 11:30 Saturday night just outside Houston when a Model S ran off the road at a high speed and crashed into a tree, killing both men inside the car.
According to local authorities, no one was behind the wheel; rather, they said one man was sitting in the rear of the car and the other was in the front passenger seat.
Constable Mark Herman noted that the fire caused by the crash took 30,000 gallons of water and “four hours to put out.” Had the car not been an electric vehicle, Herman said the fire “would have taken a matter of minutes” to extinguish.
The aftermath of the blaze shows the car nearly completely destroyed, with only a husk remaining.
As a result, some have raised concern about the batteries used in electric vehicles, because while generally safe, they can result in “thermal runaways” if the car crashes at a high speed.
Did Autopilot Cause the Crash?
According to testimony from the men’s wives, just minutes before the crash, both men had been talking about going for a drive. Reportedly, they had also been discussing the car’s Autopilot feature.
Consequently, while it hasn’t been definitively confirmed, there is a good amount of evidence to suggest they may have been using the feature at the time of the crash.
Still, many are unconvinced, including one person who tweeted, “This doesn’t make sense.” That person then cited a number of Autopilot’s safety features, including that seats are “weighted to make sure there is a driver, hands must be on steering wheel every 10 seconds or it disengages,” and that autopilot doesn’t go over speed limits.
Notably, in a direct reply to that person, Tesla CEO Elon Musk said, “Your research as a private individual is better than professionals… Data logs recovered so far show Autopilot was not enabled & this car did not purchase [Full Self-Driving]. Moreover, standard Autopilot would require lane lines to turn on, which this street did not have.”
That said, in replies to both comments, many users shared dozens of videos of people appearing to have Autopilot activated without anyone in the driver’s seat.
Others claimed that Autopilot can be enabled without physcial lane lines and that it will go over the speed limit.
Duke University professor Missy Cummings also cited her research, which found that “in 30% of trials, [Tesla] vehicles drove autonomously for nearly 30 seconds on extreme curves that lacked even a single lane marking.”
No matter the online discourse, local authorities said they plan to issue search warrants on the car’s data, which should tell them whether or not Autopilot was on.
As part of a federal response, both the National Highway Traffic Safety Administration (NHTSA) and the National Transportation Safety board have said they’re sending teams to investigate the crash.
Notably, the NHTSA said last month that it’s investigating nearly two-dozen Tesla crashes involving either the confirmed or suspected use of Autopilot.
As The Washington Post pointed out, this could be a sign that regulation is coming.
“At issue is whether Musk has over-sold the capability of his systems by using the name Autopilot or telling customers that ‘Full Self-Driving’ will be available this year,” the outlet said.
To note, Tesla itself does warn drivers that they still need to pay attention and be ready to take control of their vehicles even when using Autopilot. Part of that means riding in the driver’s seat.
See what others are saying: (The Washington Post) (The Verge) (Ars Technica)
SEC Releases Long-Awaited Report on January Memestock Frenzy, Pokes Hole in “Short Squeeze” Narrative
Among other findings, the SEC said hedge funds weren’t broadly damaged by January’s unprecedented trading event.
SEC Publishes Findings
The Securities and Exchange Commission released a long-awaited, 44-page report on Monday detailing its findings regarding this year’s “Memestock Frenzy,” which involved companies such as GameStop and AMC.
During the frenzy in late January, the share prices of those companies soared exponentially. According to one of the key narratives of the situation, smaller investors piled onto GameStop as a way to directly attack hedge funds that were actively betting against GameStop’s success and future. As CNBC reported at the time, those “hedge funds and other players had to rush in to cover their bets against the stock.”
What followed were reports that hedge funds had lost billions of dollars all at once. In fact, one notable hedge fund, Melvin Capital, received what many described as a nearly $3 billion bailout. Meanwhile, in June, it was reported that the London-based White Square Capital had shut down its main fund due to the losses it suffered in January.
However, now, the SEC has said there is no real evidence to support some of the key pillars of this narrative, including that hedge funds were substantially hurt in the long run.
“Staff believes that hedge funds broadly were not significantly affected by investments in GME and other meme stocks,” the agency said in its report. “Staff did not observe that any advisers to private funds and registered funds experienced liquidity issues or difficulties with counterparties.”
On the whole, hedge funds even saw a 1.2% increase in profits in January, according to data from the HFRI Fund Weighted Composite index.
The agency also noted that GameStop purchases to cover bets were just “a small fraction of overall buy volume,” adding that “GME share prices continued to be high after the direct effects of covering short positions would have waned.”
“The underlying motivation of such buy volume cannot be determined,” the agency concluded. “Perhaps it was motivated by the desire to maintain a short squeeze. Whether driven by [that] desire… or by belief in the fundamentals of GameStop, it was the positive sentiment, not the buying-to-cover, that sustained the weeks-long price appreciation of GameStop stock.”
SEC Not Currently Issuing Any Recommendation
The agency did not offer any policy recommendations with this report, though it did stress that a number of small-time investors who either initially bet against GameStop’s success or tried to ride the wave of gains saw significant losses.
Given that the number of investors trading GameStop rapidly jumped from 10,000 at the beginning of January to 900,000 by the end of the month, it’s not surprising that the FTC confirmed heavy losses for many.
With that in mind, the SEC aligned its next focus on commission-free trading apps and the way in which they promote potentially excessive trading. Notably, that includes apps such as Robinhood and Webull, both of which faced controversy during the frenzy for severely restricting users’ ability to trade so-called memestocks.
“Consideration should be given to whether game-like features and celebratory animations that are likely intended to create positive feedback from trading lead investors to trade more than they would otherwise,” the SEC said in its report.
SEC Chair Gary Gensler said Tuesday that by April, the agency could propose rules limiting how those apps make money from each trade, which is known as “payment for order flow.”
See what others are saying: (The LA Times) (The Washington Post) (The Wall Street Journal)
Supply Chain Issues Trigger Price Hikes, School Lunch Shortages, and More
Many news outlets have cited experts warning of supply chain issues affecting holiday spending, but the consequences of ongoing bottlenecks are already being felt across the country.
Schools Struggle for Food
A host of supply chain bottlenecks are affecting products and businesses throughout the U.S., forcing prices of goods and services to rise.
In Colorado, the Denver Public Schools system said it’s struggling to make sure it has enough milk for students on a daily basis, Insider reported Sunday. In fact, the schools are so short on milk cartons they’ve now resorted to asking students to bring refillable water bottles instead.
“When the milk is available, we are prioritizing serving milk at breakfast at all schools and at our elementary schools for lunch,” Theresa Hafner, DPS executive director of Food Services, told Insider in an email.
Meanwhile, other schools are struggling to find additional lunch-related supplies including meats, orange juice, meal trays, and plastic cutlery.
According to NBC News, Shonia Hall, director of school nutrition services for Oklahoma City Public Schools, even found herself needing to make a run to a local Sam’s Club to purchase 60,000 spoons and forks each just “to get us through for a few days in hopes the truck would show up.”
“It’s an additional cost to your budget, to your program,” she added.
Zillow Pauses House Buying
The issues also extend to the housing market, as both labor and supply shortages have led to operational backlogs for renovations and closings.
Zillow cited those issues Sunday when announcing that it would stop buying homes at least through December. Instead, the company said it plans to first prioritize the selling of its current catalog of homes.
“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Jeremy Wacksman, Zillow’s chief operating officer, said in a statement cited by Yahoo! Finance.
Zillow’s share price fell as much as 11% from around $94 to around $84 early Monday as investors pulled out of the company.
What’s Causing the Issues?
U.S. companies are having a hard time stocking their shelves with certain products and keeping prices from rising largely because of factors induced by the pandemic.
The first and most basic issue is that last year, most consumer spending halted amid COVID-19 lockdowns in March. Around that same time, many companies were forced to scale back production and lay off workers.
However, more people are now returning to the outside world, and with that comes a boost in shopping. Still, several businesses have found themselves unable to ramp up production to meet the increased and arguably unprecedented demand.
In addition to production issues, there are numerous transportation challenges. For example, a large wave of businesses have struggled for months to fill open positions. One such industry where that’s being acutely felt is trucking.
In fact, the country is so stressed for drivers to haul freight that at least one high school in California has now launched a program to train seniors to drive big rigs.
Meanwhile, Walmart, UPS, and FedEx all made 24/7 transportation commitments last week.
The supply chains problems don’t stop with ground transportation. One of the most pressing situations seen so far involves the problems at the Ports of Los Angeles and Long Beach in California, where container ships are backed up.
Pre-pandemic, it was fairly unusual for any cargo ship to be seen waiting off the coast to get into one of the two ports, which process 40% of all shipping containers entering the U.S. Now, dozens of ships have been waiting weeks to get in.
Even once they unload, there’s another major backlog involving shipping containers at the ports. Because of those combined issues, Long Beach extended its operational hours in September.
President Joe Biden later announced on Oct. 13 that L.A.’s port will “operat[e] around the clock 24/7” as part of a “90-day sprint” to clear a path for cargo.
Supply chain issues are expected to impact holiday shoppers, but many analysts expect the problems to extend well into 2022. Transportation Secretary Pete Buttigieg echoed that prediction on Sunday during an appearance on CNN.
See what others are saying: (NBC News) (Insider) (Wall Street Journal)
Facebook Is Reviewing More Than 2,200 Hours of Footage for Next-Gen AI
The project, which could prove to be revolutionary, is already raising some big privacy concerns.
Facebook’s Next-Gen AI
Facebook announced Thursday that it has captured more than 2,200 hours of first-person video that it will use to train next-gen AI models.
The company said it aims to make the AI, called Ego4D, capable of understanding and identifying both real and virtual objects through a first-person perspective using smart glasses or VR headsets. In effect, that could potentially help users do everything from remembering where they placed forgotten items to recording others in secret.
Facebook listed five key scenarios the project aims to tackle and gave real-world examples of how each may look for people who will eventually use the AI.
- “What happened when?” With that scenario, Facebook gave the example, “Where did I leave my keys?”
- “What am I likely to do next?” There, Facebook gave the example, “Wait, you’ve already added salt to this recipe.”
- “What am I doing?” For example, “What was the main topic during class?”
- “Who said what when?” For example, “What was the main topic during class?”
- “Who is interacting with whom?” For example, “Help me better hear the person talking to me at this noisy restaurant.”
Facebook said the amount of footage it has collected is 20 times greater than any other data set used by the company.
In the wake of recent controversy surrounding Facebook, it’s important to note that the footage wasn’t reaped from users. Instead, the company said it, and 13 university partners, compiled the footage from more than 700 participants around the world.
Still, that hasn’t alleviated all privacy concerns.
In an article titled, “Facebook is researching AI systems that see, hear, and remember everything you do,” The Verge writer James Vincent said that although the project’s guidelines seem practical, “the company’s interest in this area will worry many.”
Vincent pointe out that the AI announcement doesn’t mention anything in the way of privacy or removing data for people who may not want to be recorded.
A Facebook spokesperson later assured Vincent that privacy safeguards will be introduced to the public in the future.
“For example, before AR glasses can enhance someone’s voice, there could be a protocol in place that they follow to ask someone else’s glasses for permission, or they could limit the range of the device so it can only pick up sounds from the people with whom I am already having a conversation or who are in my immediate vicinity,” the spokesperson said.
Among positive reception, some believe the tech could be revolutionary for helping people around the house, as well as for teaching robots to more rapidly learn about their surroundings.