Tesla Inc. (NASDAQ:TSLA) reported its second-quarter results after the market closed on Wednesday, with Model Y emerging as the top-selling vehicle globally.
Elon Musk Highlights FSD Adoption
Tesla CEO Elon Musk said that the demand for Full Self-Driving (FSD) is surging in places where regulators have cleared it. Customers in the U.S. are increasingly purchasing the FSD package, with some prioritizing it over the vehicle itself.
Active FSD subscriptions hit 1.48 million in the second quarter, up 56% year-over-year.
Musk said that in markets where FSD is allowed, take-up is running high, with U.S. store staff hearing a version of I want FSD, whichever car it’s on. The company also said it expects similar demand jumps as additional countries approve the system.
"I think for a lot of people, they’re actually buying Tesla Full Self-Driving with a car attached, as opposed to a car with FSD," Musk said during the call.
"They’re coming into our stores in the U.S. and telling me they want the Full Self-Driving and with whatever car it comes with, essentially," Musk added.
Wider FSD Rollout
Musk said that wider FSD rollout can change both road congestion and the economics of Tesla’s growth, depending on how quickly approvals and adoption expand.
In a Sunday exchange, Musk replied to Mach 33 CEO Aaron Burnett, who said his annual mileage "doubled" after adding autonomy and that his vehicle handled driving "99% of the time."
Meanwhile, Ross Gerber, co-founder of Gerber Kawasaki, has raised concerns about Tesla’s FSD system, comparing it unfavorably to Waymo‘s technology. He argued that Waymo’s approach, which avoids difficult routes, results in safer navigation compared to Tesla’s FSD.
Tesla-SpaceX Merger
Musk, during the call, was also asked about a merger between Tesla and SpaceX.
“Well, as you can tell from all the many collaborations on so many fronts with SpaceX, there’s more and more overlap, especially with Terafab, that’s really going to be a gigantic project,” Musk said.
Price Action
Tesla shares declined 1.30% to $374.10 during regular trading on Wednesday and further declined 4.61% during overnight trading. TSLA shares have declined 16.77% in six months, but are up 12.62% over the past year.
According to Benzinga Edge Rankings, Tesla scores well on the Growth metric but poorly on Value. It also fails to provide a favorable price trend in the short, medium, and long term.
Read Also: Gene Munster Raises Odds of Tesla-SpaceX Tie-Up After Elon Musk Says 'There's More and More Overlap'
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
