I agree that if Tesla's representation of what their system is seeing is accurate, it's a bad system.

The human brain's vision system makes pretty much the exact opposite mistake, which is a fun trick that is often exploited by stage magicians: https://www.youtube.com/watch?v=v3iPrBrGSJM&pp

And is also emphasised by driving safety awareness videos: https://www.youtube.com/watch?v=LRFMuGBP15U

I wonder what we'd seem like to each other, if we could look at each other's perception as directly as we can look at an AI's perception?

Most of us don't realise how much we mispercieve because it doesn't feel different in the moment to percieve incorrectly; it can't feel different in the moment, because if it did, we'd notice we were mispercieving.