Gordon Johnson, founder of GLJ Research, has expressed surprise at Tesla Inc.’s lack of progress in its self-driving efforts, particularly given the company’s valuation. Johnson’s comments come after Elon Musk’s admission that Tesla’s Full Self-Driving (FSD) technology is far from ready.
Self-Driving: A Significant Portion of Tesla’s Valuation
Johnson estimates that self-driving capabilities make up 80-90% of Tesla’s valuation. He questions why Musk’s comments on the matter were not a bigger story in the media, suggesting that this admission could have significant implications for the company’s value.
Criticism and Admission
Johnson’s criticism stems from Musk’s comments during Tesla’s first-quarter 2026 earnings call. Musk confirmed that Tesla vehicles equipped with Hardware 3 (HW3) chips would not be able to achieve Unsupervised Full Self-Driving (FSD). This admission has raised concerns about the company’s ability to deliver on its promises.
Cybercab Production Begins
Despite the criticism, Tesla has announced that it has started production of its Cybercab. The company shared a video of the vehicle driving itself around Tesla’s Gigafactory in Texas without any occupants. This development is seen as a significant step forward for the company’s autonomous driving technology.
Earnings and Valuation
Tesla reported its first-quarter earnings, with revenue reaching $22.71 billion. This represents a 16% year-over-year jump and exceeded analyst revenue consensus. The company also reported earnings per share of 41 cents, beating market estimates. However, Johnson’s comments suggest that the company’s valuation may be overstated, given the lack of progress in its self-driving efforts.
Price Action
Tesla’s stock price surged 0.23% to $377.16 during after-hours trading on Friday. The company’s valuation remains a topic of debate, with some analysts questioning whether it is justified given the current state of its self-driving technology.
Conclusion
The controversy surrounding Tesla’s self-driving technology and its valuation is ongoing. While the company has made significant progress in other areas, such as the production of its Cybercab, the lack of progress in its FSD technology has raised concerns. As the company continues to navigate these challenges, its valuation is likely to remain a topic of debate.