Tesla Analyst’s Test Drive Highlights Safety Concerns with ‘Full Self-Driving’
In a recent report, William Stein, an analyst at Truist Securities, recently shared troubling observations about Tesla’s ‘Full Self-Driving’ (FSD) system after his test drive nearly ended in a crash. Stein, who holds a neutral stance on Tesla’s stock, took Musk’s suggestion to experience the system firsthand.
During his test drive, Stein encountered serious issues. The Tesla Model Y accelerated through an intersection while a car in front was partially making a right turn. Stein had to intervene quickly to prevent what would have been a certain accident.
Despite maintaining his hold rating and a $215 price target for Tesla, Stein expressed deep concerns about the system’s performance. He felt confused about what to expect from Tesla’s upcoming robotaxi prototypes, which now have a delayed unveiling set for October.
Tesla has not yet responded to Stein’s report. Meanwhile, Musk updated the public that Tesla is deploying an updated version of FSD. This version still does not make Tesla vehicles fully autonomous.
As Tesla deals with slower electric vehicle sales, Musk has focused more on FSD and the company’s AI efforts. This emphasis has helped the stock, which had dropped over 40% earlier this year. Although the stock was down 12% recently, it gained momentum after Morgan Stanley named Tesla as its top U.S. auto stock pick.
Stein’s recent test drives, conducted in New York’s suburbs under clear conditions, offered mixed results. He found FSD impressive in handling lane closures, potholes, and traffic flow. However, he criticized the system’s permissiveness. For instance, he was able to turn his head completely away from the road while FSD continued to drive for 20-40 seconds before issuing a warning.
Other issues included the system’s failure to respond properly when a police officer signaled for a pull-over and its disregard for lane change restrictions marked by solid white lines.
Stein concluded that while FSD showed impressive capabilities, it remains far from achieving full autonomy, countering Musk’s claims of imminent self-driving solutions.
