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...
For item recognition the resolution gets low quick though with range.