Even though Tesla’s Full Self-Driving feature has hit a few bumps in the road, it still stands out as a significant leap in automotive technology. A recent National Highway Traffic Safety Administration (NHTSA) investigation following a fatal collision involving a Tesla EV using Full Self-Driving has not dampened investor spirits. In fact, Tesla stocks saw a fractional rise during Friday’s trading session.
The NHTSA expressed concerns about the use of Full Self-Driving in adverse weather conditions such as fog and glaring sunlight. Despite the scrutiny, Tesla’s shift in marketing to label it as Full Self-Driving (Supervised) could potentially mitigate regulatory concerns. After all, no vehicle performs optimally in reduced visibility conditions.
Challenges and Triumphs
While Tesla has cleared its backlog of Cybertruck orders, allowing customers to place new orders without reservations, the supply-demand equation seems to have reached equilibrium. Notably, the rapid sell-out after just 30,000 Cybertrucks were sold highlights a lower-than-expected conversion rate from the initial two million reservations.
On the other hand, as Tesla’s Robotaxi concept faces skepticism amid uncertainties surrounding Full Self-Driving capabilities, some investors are second-guessing Tesla’s premium valuation, questioning its sustainability.
Market Outlook
Wall Street analysts have varied opinions on Tesla, with an overall Hold consensus based on recent ratings. Over the past year, Tesla’s stock price has seen a modest increase of 0.28%, leading to an average price target of $207.83 per share, implying a potential downside risk of 6.11%.
