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It can actually do that, I've seen it many times in stop-and-go traffic. It does not take "evasive action" though (but I don't think that has ever been promised). But it often brakes before I can see that traffic is slowing down ahead of the car in front of me. The article is about the well-known issue that Teslas are currently not reliable at recognizing stationary obstacles using either the Radar or computer vision.
 
It still can and it still does. But it is beta, as all owners agreed to when enabling, and it still isn't perfect.
This is a perfect case of why the nag is still there to make sure the drivers pay attention. The driver is still responsible.
 
Remember when Tesla was touting that AP could "see" in front of the car in front of you to take evasive action before you could? What happened??

Tesla On Autopilot Slams Into Stalled Car On Highway, Expect More Of This
I saw this yesterday, totally by, hmmm … accident.

I was looking for books on deep learning esp. around AVs. I came across a book by one Lance Eliot. The bio looked suspiciously self-promoting and definitely non-scholarly. So searched for him - and saw this article on Forbes.
 
I fully expect people like you pop in here when some accident happens. But I can tell you this capability has been there and I have seen it in action myself many times, where it slowed down even before the car in front of me reacted. Why is my car slowing down head-scratch moment, and then it becomes clear that car 2 cars ahead of in front has slowed down.

Additionally my car stops daily from 50 to 0, for cars stopped in red lights without missing a beat, as long as there is a line of sight to the stopped car for atleast say 30 feet.

I bet this failure is a corner case that only happens because of the front car moving away at the last minute exposing the stalled car at the last second or two, and the car does not have time to confirm if it is false positive or not.

If it saved 100 accidents, that is 100 less than what would have been if this capability had not been there.
 
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This feature is dependent on the radar being able to go under the car in front, bounce off the ground and come back up to hit the rear of the next car, and then bounce back along the same path, right?

So yeah, I'm not that surprised it doesn't always work.