Interestingly, I've taken a closer look at the Model 3 Manual, and it states this:
However, it also states this:
I'm not really sure what to make out of these notes. It could be that some other source is collecting data from the traffic signs, or it could be modeled by the fleet itself.
In situations where Speed Assist is unable to determine a speed limit (for example, speed limit signs and GPS data are not available at the current location), or if Speed Assist is uncertain that an acquired speed limit is accurate (for example, although a speed limit sign was initially detected, some time has passed before a subsequent sign has been detected), the touchscreen may not display a speed limit sign and warnings do not take effect.
https://www.tesla.com/content/dam/tesla/Ownership/Own/Model 3 Owners Manual.pdf (page 89)
This certainly seems like its eluding to extracting data from street signs. It also states:https://www.tesla.com/content/dam/tesla/Ownership/Own/Model 3 Owners Manual.pdf (page 89)
You can also specify how the speed limit is determined: • Relative - The speed limit is determined automatically based on detected traffic signs and GPS data. If desired, you can set a speed limit offset (+ or -) if you want to be alerted only when you exceed the offset speed limit by a specified amount. For example, you can increase the offset to +10 mph (10 km/h) if you only want to be warned when you exceed the speed limit by 10 mph (10 km/h).
However, it also states this:
Limitations and Inaccuracies Speed Assist may not be fully functional or may provide inaccurate information in these situations: • The speed limits stored in the GPS database are incorrect or outdated. • Model 3 is being driven in an area where GPS data is not available. • A road or a speed limit has recently changed.
I'm not really sure what to make out of these notes. It could be that some other source is collecting data from the traffic signs, or it could be modeled by the fleet itself.