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It looks real on the video that is included in the linked article.

Kids jumping in front of cars is realistic in itself. Throw in a school bus and the car should've stopped, no ifs.

And Tesla didn't even do an emergency break.

And that why reading further is important.

It’s either fake or a massive issue.

If there’s a stop sign, the car should come to a full stop irrespective of the presence of children.

That’s not a hard scenario to get right: all you need is a school bus with a deployed stop sign. Which is the case in this test.

The issue is the context. A stop sign can be a in a shop's window as it was on that famous video where the tesla cmae to a full stop at a shop that had a stop sign.