© Reuters Tesla (TSLA) FSD recalls ‘very big deal’ despite Musk’s critical attitude – Johnson of GLJ
From Investing.com Staff
Tesla (NASDAQ:) CEO Elon Musk dismissed yesterday’s NHTSA recall of the company’s fully self-driving (FSD) system as “anachronistic” and “totally wrong.” GLJ Research considers this to be a “very significant development”.
They highlight a 2016 “Paint it Black” video that exaggerated Tesla’s Autopilot capabilities as directed by Musk.
Analysts highlight comments Elon Musk sent to employees regarding the demonstration. According to Bloomberg, he said: “I want to make it clear that everyone’s number one priority is getting an amazing Autopilot demo drive,” Musk said in an email. “Since this is a demo, I don’t mind hardcoding some of it, because later he will backfill the production code with an OTA update” update. “I want to tell the world that this is what this car can do,” Musk continued.
Analysts say the Tesla FSD is still unable to do what is shown in the “Paint it Black” video. Meanwhile, they said Tesla continues to whack-a-mole over the FSD issue because their camera-based system is “completely unsuitable for self-driving” because it requires lidar and radar. be.
Additionally, analysts believe this is just the beginning of NHTSA and, citing an article in Consumer Reports, will see more recalls of FSD betas.
They highlight the following from a Consumer Reports article:
“When asked for comment on the recall, an NHTSA spokesperson sent the following statement to Consumer Reports: “NHTSA will continue to monitor the effectiveness of its recall measures. It is intended to address the specific issues of the NHTSA … It does not cover the full scope of the investigation, and therefore the NHTSA investigation into Tesla’s Autopilot and related vehicle systems will continue to be open and open to the public. It is active.”
Analysts concluded that Tesla’s FSD system has a “fundamental problem” that a camera-only system could never solve.
“In short, this is a massive deal that investors don’t seem to mind…for now. Expect more FSD beta recalls from NHTSA, and possible class action lawsuits to follow.” they added. “In our view, this is much bigger than the Volkswagen ‘Dieselgate’ fraud/scandal (link) where (a) no one died and (b) lives were in imminent danger. was not E. Musk himself (link), if TSLA can’t fix the FSD problem (which this recall suggests it can’t), TSLA’s stock value is “worthless” in our view. “