One of Tesla’s most loyal investors, William Stein from Truist Securities, narrowly avoided a road accident while testing the new autonomous driving system of the Model Y.
Despite the incident, Stein maintains a target price of $215 for Tesla shares, up from the current $213.
According to Stein, “The Model Y accelerated through an intersection while the car in front of us had only partially completed a right turn.
My timely intervention was absolutely necessary to avoid an otherwise certain accident.”
Tesla’s CEO, Elon Musk, announced on Monday the release of a new update for the Full Self-Driving (FSD) system, also known as the company’s “autopilot.” Despite its name, FSD does not guarantee full autonomy and requires the driver’s utmost attention.
Stein was able to briefly take his hands off the wheel and divert his gaze from the road just before the incident.
He also reported two cases where the car crossed solid white lines indicating a no-crossing lane.
Testing took place in New York City under dry and clear weather conditions.
Despite his experience, Stein praised Tesla’s autonomous driving, acknowledging that the company is “not even close to ‘solving’ autonomy.”
Elon Musk recently admitted that Tesla’s true mission is to become an artificial intelligence company.
In addition to true autonomous driving software, the company has promised to provide AI-powered humanoid robots by 2026.
Last year, Musk stated that no one should invest in Tesla if they don’t believe in its autonomous driving software.
While some analysts are skeptical about Tesla truly solving the “autonomy problem,” others believe it is the company’s primary mission.
Piper Sandler raised Tesla’s target price to $300 despite a very disappointing last quarter.
The firm predicts Tesla will develop complete autonomous driving software by 2035 and charge consumers around $500 per month.
According to Piper Sandler analyst Alexander Potter, a Tesla will cost $31,000, providing the company with a 0% profit margin.
The autonomous driving subscription will be the true profit growth driver for Tesla.
Elon Musk announced that Tesla will unveil a new robotaxi in October.
The launch was originally scheduled for August 8th but was postponed by Musk.
Tesla’s stocks have been extremely volatile this year as investors weigh disappointing quarterly earnings against Elon Musk’s ambitious promises.
The stock is currently down 1.5% since the beginning of the year, the worst performance among the so-called “Magnificent 7.”
Article published on Money.com international edition on 2024-07-30 12:19:32.
Original title: Tesla investor nearly avoids crash as Musk boasts self-driving software
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