A recent test drive of Tesla’s full self-driving system has left an analyst cautiously optimistic about the company’s future in autonomous driving technology. The test, which was the fourth of its kind, was conducted using a Tesla Model 3 with FSD v13.
The Analyst’s Takeaways
The analyst, William Stein from Truist, maintained a Hold rating on Tesla with a $360 price target. Stein’s test drive experience was mostly positive, with the vehicle navigating around obstacles and changing lanes logically. However, “imperfections remain obvious,” and the analyst noted several areas where the system fell short.
Test Drive Results
The 15-mile round-trip test required no interventions, with the vehicle navigating through various scenarios without the need for human input. Some of the notable observations from the test drive include:
- The vehicle navigated around a double-parked car and changed lanes on the highway logically
- Driving was mostly smooth and human-like
- The vehicle followed drivers “rather closely,” which could pose a safety threat
- The vehicle lingered to the edge of its lane, coming closer to barrier walls than many drivers would prefer
- The system failed to yield to a pedestrian in a crosswalk, which was seen as a major safety concern
Conclusion
While the test drive results were impressive in some areas, Stein believes that Tesla’s full self-driving system is not yet ready for prime time. The analyst noted that the imperfections in the system seem to be related to sensors, rather than AI, which could be a more significant problem for the company to overcome. However, Stein remains cautiously optimistic about Tesla’s ability to eventually “solve” autonomy, saying that the company may eventually overcome the current limitations of its system.
Stock Performance
Tesla’s stock price was down 6.66% to $376.78 on Thursday, with a 52-week trading range of $138.80 to $488.54.
Future Prospects
The analyst’s conclusion highlights the ongoing challenges faced by Tesla in developing a fully autonomous driving system. While the company has made significant progress in recent years, there are still several hurdles to overcome before the system can be considered safe and reliable for widespread use. As the development of autonomous driving technology continues to evolve, Tesla’s ability to overcome these challenges will be crucial to its long-term success.