I checked the coolant, and it looks ok.

Here's the radiator cap off
IMG_7905.jpg

And here's the coolant tank, looks like the level is on the low end, but still above the LOW line
IMG_7906.jpgIMG_7909.jpg

And here's the new temperature sensor, which seems to be connected
IMG_7908.jpg


So if the coolant level is fine, and the sensor is connected, could it be that the (new) sensor is faulty? Or could the gauge be faulty?
Something's obviously not right, but is there any danger that the engine might be overheating if the sensor is not reading the temperature correctly?
My understanding of how this works is that the cooling to the engine is controlled by the thermostat, and that temperature sensor is just there to give a reading, though the gauge. Is this right, or does the temperature sensor has something to do with the temperature control of the engine as well?

Could the thermostat have anything to do with this issue?

Is it safe to drive right now?

Thanks