Analyst almost crashes while testing Tesla's FSD: Impressive technology, but still far from fully autonomous

According to the financial news app Zhitong Finance, Elon Musk stated in the recent two Tesla (TSLA.US) earnings conference calls that investors will not understand the company unless they use the "Full Self-Driving" (FSD) assisted driving system. Truist Securities analyst William Stein took this opportunity to test drive a Tesla car and almost had a collision. Stein maintained a "hold" rating on Tesla stock with a target price of $215.

In his report on Monday, Stein wrote, "As the car in front of us was completing a right turn, the Model Y accelerated through the intersection. My quick intervention was absolutely necessary, or an accident would have definitely occurred."

Stein emphasized, "The defects we observed make it hard for us to imagine what Tesla will showcase in the RoboTaxi event in October." According to Musk, Tesla was supposed to showcase a specially designed "robot taxi" prototype at an event on October 10, originally scheduled for August 8.

Truist Securities stated that there is hope and optimism for Tesla to continue providing safer autonomous driving features, but warned investors that these advancements may not be completed before the planned RoboTaxi event in October.

Tesla did not immediately respond to requests for comment on Stein's report. Musk posted a message on X on Monday stating that Tesla is deploying an upgraded version of "Full Self-Driving," but this will not make the company's cars fully autonomous.

With electric vehicle sales slowing down, Musk is placing more emphasis on FSD and Tesla's broader artificial intelligence work. The CEO's remarks have helped support Tesla's stock price. As of last week's close, Tesla's stock price had fallen 12% year-to-date. However, after Morgan Stanley designated Tesla as the new top pick in U.S. auto stocks, Tesla surged nearly 6% on Monday.

In early April this year, after the first quarter earnings conference call for Tesla, Stein tried using FSD and tried it again this month. He gave a mixed review after the first test - "great, but not useful today" - and summarized the second test as "not better, arguably worse."

Both of Stein's drives were in the suburbs near New York, with clear and dry weather. In the recent test, FSD's adaptability to lane closures, potholes, and traffic flow left a deep impression on him. He stated that compared to previous tests, this drive "felt more natural overall."

He was surprised and dismayed by the system's tolerance - he no longer needed to steer to keep FSD engaged, and could even continue using it with his eyes off the road.

Stein wrote, "I completely took my eyes off the road." He added that his son was constantly watching for any dangers. "The system continued to operate for 20-40 seconds before issuing a warning."

Stein mentioned that besides intervening to avoid rear-ending a car that had only partially completed a right turn, he also had to intervene when a police officer gestured for him to pull over to let a funeral procession pass "In the stretch of road we were driving on, the highway was winding and narrow, with a white solid line between lanes indicating no lane changes," Stein wrote. "Nevertheless, the Model Y changed lanes twice in this situation."

Stein concluded that the FSD version he tested was "indeed impressive, but still far from achieving 'fully' autonomous driving."