Tesla’s ambitious push towards a fleet of autonomous robotaxis is facing renewed scrutiny following a recent test drive by a Wall Street analyst that revealed significant safety concerns with the company’s Full Self-Driving (FSD) technology.
William Stein, an analyst with Truist Securities, tested Tesla’s FSD feature, which is priced at $8,000 and is designed to navigate city streets and highways with minimal human intervention. Stein’s experience, however, was fraught with alarming issues. His test drive, conducted in a special “demo mode” reserved for Tesla employees, encountered multiple problematic situations, including illegal maneuvers and near-accidents.
According to Stein’s report, the Tesla Model Y in FSD mode executed lane changes where such actions were prohibited by solid white lines. In one instance, the vehicle accelerated through an intersection while the car ahead was only partly completing a right turn, necessitating a quick intervention to avoid a collision. Additionally, the car failed to respond appropriately when a police officer signaled the need to pull over for a funeral procession.
Stein noted that the FSD system had shown improvements since his last evaluation in April, particularly in adapting to challenging driving conditions like lane closures and potholes. Despite these advancements, Stein’s overall assessment indicated that the system remains problematic, suggesting that it is “no better, arguably worse” than before.
Elon Musk, Tesla’s CEO, has championed the FSD technology as a cornerstone of the company’s future, arguing that robotaxis could dramatically increase the value of Teslas by allowing them to operate independently and generate revenue. Musk has even projected that Tesla’s market capitalization could reach $5 trillion by the decade’s end, a figure that far exceeds the company’s current valuation of $830 billion.
However, Tesla has delayed the rollout of its robotaxi service, initially scheduled for early August, to October 10, citing the need for crucial improvements. The company has emphasized that the timeline for the robotaxi service depends on technological advancements and regulatory approvals.
Regulatory agencies have also expressed concerns about Tesla’s FSD and Autopilot features. In January, the National Highway Traffic Safety Administration (NHTSA) ordered a recall of 363,000 vehicles due to the FSD system’s failure to comply with traffic safety laws. Last year, NHTSA mandated a recall of nearly 2 million Teslas due to safety issues associated with Autopilot, which was found to pose an unreasonable risk to motor vehicle safety.
In response to recent developments, NHTSA has required another recall affecting 1.8 million Teslas due to a software issue that could cause the vehicle’s hood to open unexpectedly while driving. This problem will be addressed with an over-the-air software update.
As Tesla continues to push the boundaries of autonomous driving, the challenges highlighted by Stein’s test drive underscore the significant hurdles that remain in perfecting the technology and ensuring its safety.
