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In conclusion, speed and velocity are kinematic quantities that have distinctly different definitions. Speed, being a scalar quantity, is the rate at which an object covers distance. The average speed is the distance (a scalar quantity) per time ratio. Speed is ignorant of direction. On the other hand, velocity is a vector quantity; it is direction-aware. Velocity is the rate at which the position changes. The average velocity is the displacement or position change (a vector quantity) per time ratio.
What about the average speed according to definition 1? In this case, the distance traveled is 1000 meter so that the average speed would be (1000 m)/(50 s) = 20 m/s. This is what the speedometer would read. According to definition number 2, the average speed is the magnitude of the average velocity. Since the average velocity is zero (vector) m/s, the magnitude of this is also zero meters per second. If you want the instantaneous speed according to the definition 2, that would also be 20 m/s.