Until it doesn't.
Failure to stop for a stationary gore point:
https://arstechnica.com/cars/2018/06/ntsb-autopilot-steered-...
https://abc7news.com/automotive/i-team-exclusive-tesla-crash...
Failure to stop for a stationary fire truck:
https://www.wired.com/story/tesla-autopilot-why-crash-radar/
Again, the Model 3 user manual is illuminating:
Warning: Traffic-Aware Cruise Control cannot detect all objects and,
especially in situations when you are driving over 50 mph
(80 km/h), may not brake/decelerate when a vehicle or object
is only partially in the driving lane or when a vehicle you
are following moves out of your driving path and a
stationary or slow-moving vehicle or object is in front of
you. Always pay attention to the road ahead and stay
prepared to take immediate corrective action. Depending on
Traffic-Aware Cruise Control to avoid a collision can result
in serious injury or death. In addition, Traffic-Aware
Cruise Control may react to vehicles or objects that either
do not exist or are not in the lane of travel, causing Model
3 to slowdown unnecessarily or inappropriately.
Warning: Several factors can affect the performance of Automatic
Emergency Braking, causing either no braking or inappropriate
or untimely braking, such as when a vehicle is partially in
the path of travel or there is road debris. It is the
driver’s responsibility to drive safely and remain in control
of the vehicle at all times. Never depend on Automatic
Emergency Braking to avoid or reduce the impact of a collision.
Warning: Autosteer is a hands-on feature. You must keep your hands on the steering wheel at all times.
Warning: Autosteer is intended for use only on highways and limited-access roads with a fully attentive driver. When using Autosteer, hold the steering wheel and be mindful of road conditions and surrounding traffic.
Warning: Autosteer is not designed to, and will not, steer Model 3 around objects partially or completely in the driving lane. Always watch the road in front of you and stay prepared to take appropriate action. It is the driver's responsibility to be in control of Model 3 at all times.
Warning: Traffic-Aware Cruise Control cannot detect all objects and, especially in situations when you are driving over 50 mph (80 km/h), may not brake/decelerate when a vehicle or object is only partially in the driving lane or when a vehicle you are following moves out of your driving path and a stationary or slow-moving vehicle or object is in front of you. Always pay attention to the road ahead and stay prepared to take immediate corrective action. Depending on Traffic-Aware Cruise Control to avoid a collision can result in serious injury or death. In addition, Traffic-Aware Cruise Control may react to vehicles or objects that either do not exist or are not in the lane of travel, causing Model 3 to slowdown unnecessarily or inappropriately.
Warning: Several factors can affect the performance of Automatic Emergency Braking, causing either no braking or inappropriate or untimely braking, such as when a vehicle is partially in the path of travel or there is road debris. It is the driver’s responsibility to drive safely and remain in control of the vehicle at all times. Never depend on Automatic Emergency Braking to avoid or reduce the impact of a collision.
Edit:
And neither is Tesla. Anybody operating either of these systems without paying attention to the road and being prepared to control the wheel at all times should have their drivers license confiscated.
See page 73 of the Model 3 owners manual: https://www.tesla.com/content/dam/tesla/Ownership/Own/Model%...
Key terms: "hands-on", "fully attentive driver". It's a Level 2 system.Page 74 makes this even more clear: