Independent research firm Melius Research’s analyst Rob Wertheimer has highlighted the significant role of Tesla’s Full Self-Driving (FSD) system in the company’s future growth. According to Wertheimer, Tesla’s autonomous driving lead is “approaching an irreversible tipping point,” which could trigger “one of the biggest value shifts in modern industrial history.” He has outlined Tesla stock as “a must own.”
Tesla’s Autonomous Driving Lead
Wertheimer notes that the automotive industry is at risk due to a value shift of “hundreds of billions” for Tesla in the next five years. Despite low awareness of self-driving technology among the general public, with “not even 1 out of 100 Americans” having experienced a self-driving car, a large-scale rollout of the technology would likely “shock” people. Tens of thousands have already tried Tesla’s Supervised FSD technology.
Elon Musk on FSD Licensing
Tesla CEO Elon Musk has stated that the company offered its FSD technology to legacy automakers as a licensing deal, but they refused. Musk believes that these companies risk being left behind in the autonomous driving race, comparing them to dinosaurs. He has also hinted that the FSD v14.3 update could enable unsupervised FSD for Tesla vehicles, calling it the final piece in the puzzle.
Recent Developments
- Tesla has completed the self-certification process to deploy its autonomous vehicles in Nevada, paving the way for Robotaxi’s commercial operations in the state.
- The FSD v14 has garnered praise from experts, including Gerber Kawasaki’s co-founder Ross Gerber, despite some issues with the technology’s mapping capabilities.
- Tesla is making significant progress in its AI chip-building efforts, with Musk predicting that the company will make more chips than any other chipmaker in the industry.
Tesla’s Chip-Building Efforts
Musk has touted Tesla’s AI chip-building credentials, highlighting the company’s deep collaboration between hardware and software teams as a key element to chip progress. Tesla’s AI lead, Ahsok Elluswamy, has backed Musk’s claims, outlining the company’s efforts to build more AI chips.
Price Action
Tesla’s stock surged 6.82% to $417.78 at market close and 0.24% to $418.78 during after-hours trading.
Conclusion
Tesla’s FSD dominance is expected to spark a historic value shift, with the company’s autonomous driving lead approaching an irreversible tipping point. With its significant progress in AI chip-building efforts and the potential for unsupervised FSD, Tesla is poised to revolutionize the automotive industry. As Wertheimer notes, Tesla is a “must own” stock, and its future growth prospects are exciting.