Y Combinator co-founder Paul Graham recently shared his wife Jessica’s first experience with Tesla’s Full Self-Driving (FSD) technology, describing her reaction as the “usual religious revelation.” Graham praised the 23-year-old automaker for still generating excitement with its self-driving capabilities.
A Life-Changing Experience
Graham wrote, “Jessica bought a new Tesla today. Her experience with self-driving was the usual religious revelation. Impressive that a 23-year-old company can still generate that kind of reaction.” This statement highlights the significant impact of Tesla’s FSD technology on its users.
Tesla AI Chief Responds
Tesla AI chief Ashok Elluswamy replied to Graham’s post, saying, “Please let it be in the US.” This response suggests that Elluswamy is eager to see the FSD technology being used in the US, where Tesla has built its largest market.
FSD Business Expansion
Tesla’s FSD business has expanded quickly, with the company ending the second quarter with about 1.5 million active subscriptions. This represents a 56% increase from the previous year. The company has disclosed 1.48 million subscriptions, up from 1.28 million in the first quarter.
Regulatory Scrutiny
Despite the growth of FSD, the technology still faces regulatory scrutiny. The National Highway Traffic Safety Administration (NHTSA) classifies systems that control steering and speed while requiring human oversight as Level 2 advanced driver assistance. Regulators continue to examine FSD incidents, including one fatal crash and two injury crashes.
Global Rollout
Tesla’s overseas rollout remains uneven, with the Netherlands approving supervised FSD earlier this year. Wider European clearance remains under review, and Tesla is seeking approval in China. The company’s autonomy ambitions will be tested as it expands its FSD technology globally.
Market Impact
The enthusiasm for FSD among Tesla owners, as highlighted by Graham’s reaction, contrasts with the regulatory caution. Tesla is betting that such experiences can help convert more drivers into paying FSD subscribers, making autonomy central to its growth story.
Stock Performance
Tesla’s stock scores poorly on Momentum and Value metrics but provides satisfactory Growth and Quality, according to Benzinga Edge Rankings. The stock was up 0.70% to $321.77 during pre-market trading on Friday.