Tesla’s recent announcement regarding the launch of its Full Self-Driving (FSD) technology in Europe and China has ignited a heated debate within the investment community. The company plans to introduce FSD in these markets during the first quarter of 2025, subject to regulatory approval. However, not everyone is convinced by this timeline.
Gordon Johnson, CEO of GLJ Research, a firm known for its bearish stance on Tesla, has labeled the announcement as a mere attempt to “pump” the stock price. Johnson claims that Tesla has employed this tactic several times this year, using seemingly significant announcements to inflate the share value. He believes that the company’s recent poor earnings performance and subsequent stock decline have led to this latest “pump” strategy.
On the other hand, Gary Black, managing partner of the Future Fund and a vocal Tesla bull, argues that the Q1 2025 timeline aligns with expectations. He points out that Elon Musk had previously hinted at securing regulatory approval by year-end, making the announced timeline a natural progression.
The debate surrounding Tesla’s FSD rollout highlights the company’s ongoing struggles to balance shareholder expectations with its ambitious goals. Despite facing challenges like declining customer demand and intense competition in the EV market, Tesla is determined to expand its offerings beyond electric vehicles. The company is investing heavily in autonomous driving and humanoid robots, aiming to enhance its long-term value proposition.
While the debate over FSD’s timeline continues, it’s crucial to remember that Tesla’s stock price has been volatile this year. As the company navigates a challenging market landscape, investors are left wondering if its ambitious plans will ultimately translate into sustained growth and profitability.
