Elon Musk Says Tesla Has 'Pretty Much Solved' Unsupervised FSD, Driverless Robotaxis Coming To Austin In 3 Weeks
Tesla Inc. (NASDAQ:TSLA) may have just solved Unsupervised Full Self-Driving (FSD), according to CEO Elon Musk, as the EV giant eyes FSD's European expansion.
A Solved Problem, Says Elon Musk
Speaking at the xAI Hackathon via video link on Tuesday, Musk shared details regarding the FSD developments. FSD Unsupervised is “pretty much solved at this point,” Musk said, adding that there would be no onboard safety monitors on board the Austin Robotaxis within three weeks.
Musk’s comments are in line with an earlier prediction where he assured that Austin Robotaxis would go driverless by the end of the year.
"We're going through validation right now," Musk said, while adding that the removal of the onboard safety monitors would be rolled out with a smaller FSD model. Musk also shared that there will be a model "that’s an order of magnitude larger that will be deployed in January or February 2026" with more reasoning and reinforcement learning.
Musk reiterated the need for having chip fabrication capabilities, sharing that it was important if Tesla wanted to "get to serious scale." Tesla's chip-building efforts have recently scaled up, with the EV giant reportedly partnering with Intel Corp. (NASDAQ:INTC) to develop the TeraFab, which is a proposed foundry.
Alex Potter Bullish On Tesla
Meanwhile, Piper Sandler analyst Alex Potter reiterated his bullish stance on FSD in a new investor note. "Tesla is getting very close to unsupervised FSD," Potter said, after having discussions with the FSD Community Tracker, which reported data that "exhibited a >20x improvement after FSD v14.1.x" was released. Potter reiterated an Overweight rating for the stock and a $500 price target for Tesla.
The stance could provide a boost for Tesla, which recently lost a key bull analyst as investment bank Morgan Stanley took analyst Adam Jonas off the EV giant. Tesla was recently downgraded to Equal-weight by new analyst Andrew Percoco, who took over from Jonas. Jonas had held an Outperform rating for Tesla since 2023.
Tesla scores well on Momentum, while offering satisfactory Quality and Growth, but poor Value. It also has a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
Price Action: TSLA surged 1.27% to $445.17 at Market close, jumping 0.05% further during After-hours to $445.40, according to Benzinga Pro data.
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