The advance in research and development will make the deployment of automated vehicles a reality in the near future. At the initial stage, semi-automated vehicles with the capability to follow each other automatically in the same lane will coexist with manually driven vehicles on the same roadway system. A number of safety and human factor issues need to be resolved before such mixing becomes possible. In this paper we analyze the effect of mixing on capacity and stability of vehicle following. We found that capacity may not always increase with the percentage of semi-automated vehicles because the intervehicle spacing has to account for driver reaction times during stopping. Semi-automated vehicles will attenuate the “slinky effects” without affecting the total travel time.