For item recognition the resolution gets low quick though with range.
IIRC Tesla does use LIDAR in their test vehicles to measure the ground truth of their 3D model maps. They just don't do that with every single car on the road.
Examples:
https://twitter.com/gbrulte/status/1395356317410287617
https://electrek.co/2020/06/29/tesla-spotted-testing-prototy...
Waymo talks about using LIDAR on their gesture recognition system: https://blog.wing.comhttps//blog.waymo.com/2022/02/utilizing...
If it can't make sense of something as simple as that, why would I trust it with hazards?
https://www.thedrive.com/news/teslas-can-be-tricked-into-sto...
(Self-driving seems to me to be somewhere you absolutely want as much defense in depth and redundant sensors as possible.)
If Tesla hasn't already tested this in simulation, I'd be astounded.
Also if a false tunnel good enough to fool FSD beta, I'd suspect it'd also be good enough to fool a decent proportion of human drivers too.
Tesla FSD needs better planning strategies when faced with unusual obstructions like novel construction zone diversions. LIDAR can't help there.
Tesla FSD desperately needs more road sign reading skills. LIDAR can't read road signs.
Tesla FSD will eventually need to recognise law enforcement officers and respond to hand gestures. LIDAR cannot disambiguate a LEO from any random person, nor can it translate hand gestures into intent.
The long tail of driving is dealing with the extremely obscure and yet blatantly straightforward tasks. LIDAR is useful for none of them.