The Future Fund LLC’s managing director Gary Black expressed skepticism on Monday regarding the excitement surrounding Tesla Inc. (NASDAQ:TSLA)’s second supervised robotaxi test in San Francisco.
Check out the current price of TSLA stock here.
What Happened: Black pointed out that until the safety driver is removed, Tesla’s Full Self-Driving (FSD) cannot be considered fully autonomous and thus cannot be scaled nationally.
He compared this to Uber Technologies Inc. (NYSE:UBER), which is trading near its all-time high, noting that Uber is the biggest beneficiary as the industry moves towards autonomy.
Black’s comments come as Tesla plans to launch its robotaxi service in the San Francisco Bay Area, according to a memo seen by Business Insider. The service, which could start as soon as Friday, will operate with safety drivers who can control the vehicle.
The geofenced area for the service includes Marin, the East Bay, San Francisco, and extends to San Jose.
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On the same day, Tesla’s shares rose nearly 4% following reports of the impending launch of its robotaxi. The service will initially be available to a select group of invited Tesla owners who will pay for rides within the designated area.
Why It Matters: Black’s remarks highlight the ongoing debate about the readiness and scalability of autonomous driving technology.
Despite Tesla’s ambitious plans, Black emphasizes the limitations of the current supervised tests. This skepticism is underscored by Tesla’s recent stock performance, which has seen a 22% decline year-to-date, in contrast to Uber’s 51% rise.
Elon Musk, CEO of Tesla, has previously stated that a $20 trillion valuation for the company is possible, despite recent declines in sales and revenue. However, Black’s comments suggest that achieving such a valuation would require significant advancements in autonomous technology.
The launch of the robotaxi service in San Francisco is a critical step for Tesla as it seeks to expand its autonomous offerings. However, the presence of safety drivers indicates that fully autonomous operations are still a work in progress.
Benzinga's Edge Stock Rankings show that while TSLA is experiencing short-term downward pressure, it maintains positive momentum over the medium and long term. The stock boasts a strong growth score, although its value rating remains on the lower side. Additional performance insights are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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