Tesla Inc., known for its innovative approach to electric vehicles and autonomous driving technology, is currently facing scrutiny regarding its Full Self-Driving (FSD) system. Prominent investor Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, highlighted a “critical safety issue” concerning the system's ability to detect emergency vehicles. Gerber shared his concerns on social media platform X, indicating that the latest FSD version 13.2.2, while improved from its predecessors, still does not achieve full autonomy and lacks a crucial multi-sensory detection capability.
Gerber pointed out that the FSD system primarily relies on visual inputs to function, which presents a limitation particularly in scenarios involving emergency vehicles. He mentioned that Tesla is working on integrating audio detection capabilities to enhance the system's responsiveness to sirens and other auditory signals emitted by emergency services. “Tesla now working on adding hearing so it can know when an emergency vehicle is around. Yes humans use more than one sense to drive,” Gerber commented, stressing that this is essential for the enhancement of safety in autonomous vehicles.
The rollout of FSD version 13.2.2 follows Tesla's introduction of FSD version 13 in early December, which CEO Elon Musk suggested would facilitate a significant increase in the distance drivers can travel autonomously before needing to intervene. Despite the advancements, Gerber observed that the FSD performance in the newly launched Cybertruck seems to lag behind that of other Tesla models. Nevertheless, he commended Tesla's overall software capabilities, which he described as "amazingly better than any vehicle," while acknowledging the increasing competitiveness of rivals like Rivian Automotive Inc.
On the market front, Tesla's shares have been performing robustly, recently surpassing the symbolic $420 threshold. According to Morgan Stanley analysts, Tesla has been named a top stock pick for 2025, attributed to its progressive strides in autonomy and robotics. Plans are also in place for Tesla to initiate a ride-hailing service in Texas and California next year, pending regulatory approval, although it may initially involve human drivers to comply with state regulations.
As of Tuesday, the stock closed at $462.25, reflecting a daily increase of 7.35%. Following the close, it experienced a slight rise of 0.64% in after-hours trading. Year-to-date, Tesla stocks have surged by 86.08%, indicating growing investor confidence in the company's trajectory.
Consensus estimates from analysts reveal a price target of $280.41, with expectations ranging widely—from a high of $515 to a low of $24.86. The latest analyses from firms including Baird, Mizuho, and Goldman Sachs average at about $446.67, suggesting a modest potential downside of 3.99%.
In summary, Tesla's pursuit of advanced autonomous driving technology has prompted discussions on essential safety features as well as competitive positioning within the electric vehicle market, reflecting both challenges and opportunities for the company moving forward.
Source: Noah Wire Services