Tesla’s planned launch of Full Self-Driving (FSD) in China may face delays as the company awaits regulatory approval and grapples with data security concerns. While Tesla has expressed its commitment to launching FSD in China and Europe, the Chinese government is yet to grant permission for the feature’s introduction. Data security concerns have emerged as a significant barrier, prompting discussions about granting Tesla access to certain non-sensitive video data for system training.
A U.S. District Court judge dismissed a lawsuit against Tesla, ruling that shareholders failed to prove CEO Elon Musk misled investors regarding the company’s Full-Self Driving (FSD) technology. While the judge rejected claims of misrepresentation, investors have until October 30th to file an updated complaint. Despite this victory, Tesla faces ongoing lawsuits and federal investigations regarding its Autopilot and FSD systems. The company continues to expand its FSD technology with software updates, including deployment on the Cybertruck. Musk has also teased the possibility of an unsupervised robotaxi by the end of 2024.
Elon Musk, CEO of Tesla, believes that buses will become obsolete when his company’s full self-driving (FSD) technology matures. He argues that autonomous Tesla vehicles will offer point-to-point transportation at an affordable price, rivaling bus fares. Musk envisions a future where Tesla’s robotaxi fleet, operated like a combination of Airbnb and Uber, will dominate the transportation landscape.
Tesla shares are surging in pre-market trading, driven by the company’s roadmap for its Full Self-Driving (FSD) technology in Europe and China. The stock is also benefiting from its relative valuation strength compared to the broader market. Analysts are also noting positive technical trends for Tesla, suggesting potential for outperformance.
Tesla, known for its reliance on cameras for its Full Self-Driving system, was recently spotted testing a Model X equipped with LiDAR. This contradicts CEO Elon Musk’s previous statements against LiDAR technology. The sighting raises questions about Tesla’s approach to autonomous driving and the role of LiDAR in its future.
Tesla has announced a delay in the rollout of its full self-driving (FSD) driver assistance technology on its Cybertruck vehicles. The initial release of parking assistance features is scheduled for this week, with FSD expected to arrive in September. This marks a further delay from previous timelines set by CEO Elon Musk.
Tesla CEO Elon Musk’s recent visit to China to address obstacles hindering its Full Self-Driving (FSD) technology highlights his unwavering commitment to the company despite recent challenges, according to Adam Jonas, Morgan Stanley’s head of U.S. auto research. Jonas emphasizes that Musk’s presence in China transcends the pursuit of regulatory approvals and signifies his renewed focus on Tesla. Investors interpreted Musk’s visit and meeting with Premier Li Qiang as a positive sign, boosting Tesla’s stock by 14.4%. Jonas reiterates an overweight rating on Tesla shares with a $310 per share target, indicating substantial upside potential.
A Tesla driver, Carl Hunter, has been charged with vehicular homicide after his vehicle in autopilot mode crashed into a motorcyclist, killing him. The victim, Jeff Nissen, was pronounced dead at the crash site. Investigators say Hunter admitted to drinking prior to the crash but passed field and blood tests. They labeled distracted driving as the cause of the crash, as Hunter was using his phone at the time. Tesla offers a Full Self-Driving (Supervised) feature, but recommends drivers remain attentive and avoid complacency. It’s unknown if Hunter was using the trial or had paid for the service. Nissen’s sister urged drivers to put away their phones and pay attention to the road.
Tesla’s net income for the first quarter of 2024 plummeted by 55%, but its stock price soared in after-hours trading after the company announced plans to move up production of new, more affordable vehicles. The company reported $1.13 billion in net income compared to $2.51 billion in the same period last year. Tesla stated that production of smaller, more affordable models will begin in the second half of next year. The company also mentioned the development of a fully autonomous robotaxi as a driver for future earnings growth. Despite declining sales, Tesla’s revenue remained strong at $21.3 billion. The company’s gross profit margin fell once again, and it anticipates lower vehicle sales growth this year as it prepares for the launch of its next-generation vehicle. However, analysts remain skeptical about the viability of the Full Self-Driving system as a growth catalyst.
Amidst declining sales and a falling stock price, Tesla has implemented price reductions on its electric vehicles and ‘Full Self Driving’ system. While the company’s earnings report for Q1 2024 shows a 9% sales decline, CEO Elon Musk remains optimistic about the potential of the long-awaited robotaxi. However, industry analysts are skeptical of Musk’s ambitious plans, fearing the cancellation or delay of the Model 2, an affordable vehicle for the mass market. Despite the price cuts, Tesla’s shares continue to fall, prompting concern among investors. As Tesla unveils its financial performance and Musk provides updates on the robotaxi, analysts await further guidance on the company’s growth strategy.
