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Tesla Drops Radar for Cameras From Some Cars Sold in North America

Starting this month, Tesla's Model 3 and Model Y vehicles delivered in North America will use a camera-based system instead of radar for driver-assistance features, it said.
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Tesla  (TSLA ) has announced that it’s dropping radar from its Model 3 and Model Y cars sold in North America in favor of a camera-based system for its driver-assistance features.

“Beginning with deliveries in May 2021, Model 3 and Model Y vehicles built for the North American market will no longer be equipped with radar,” Tesla said on its web site Tuesday.

“Instead, these will be the first Tesla vehicles to rely on camera vision and neural net processing to deliver Autopilot, Full-Self Driving and certain active safety features,” Tesla wrote.

All new Model S and Model X cars and all vehicles built for markets outside of North America will continue to be equipped with radar, “until we determine the appropriate time to transition those vehicles to Tesla Vision,” which is what Tesla is calling the new camera-based system, the company said.

During the transition, cars with Tesla Vision may have some features temporarily limited or inactive, including Autosteer, Smart Summon and Emergency Lane Departure Avoidance, Tesla said.

Tesla recently traded at $607.91, up 0.53%. Tesla shares have slumped 17% in the last month amid valuation concerns.

The Autopilot system has created controversy, with regulators investigating a Tesla car crash in April that killed the vehicle’s two occupants.

In other Tesla news Wednesday, the South China Morning Post reported that the company has established a data center in Shanghai to locally store all data collected from its customers in mainland China.

That move is likely to set the tone for all overseas technology companies eyeing the Chinese market, the paper says.