Tesla’s Full Self-Driving (FSD) software has been a hot topic among analysts who see the potential for significant recurring revenue for the company. With the widespread adoption of this cutting-edge technology, experts believe that Tesla’s financial performance will receive a significant boost. The CANACCORD analysts are optimistic about the impact of FSD on both the top and bottom lines, suggesting that it could lead to increased market penetration in the future.
Recently, Tesla’s CEO Elon Musk and other executives provided insights into the software as it moves from beta-testing to a supervised version. To give users a taste of what FSD has to offer, Tesla is offering a month-long free trial in the United States. The positive feedback from trial users, notably shared by Tesla influencer Sawyer Merritt, has caught the attention of many, with Musk himself describing the software’s capabilities as “like magic.” Even Airbnb co-founder and Tesla board member Joe Gebbia has expressed admiration for the latest version of FSD, calling it a mind-blowing experience.
This shift towards generating revenue from ancillary sources and businesses is seen as crucial for Tesla, especially in the face of challenges in volume growth. Analysts believe that the high-margin recurring revenue from increased FSD adoption will have a positive impact on Tesla’s financial performance. George Gianarikas, an analyst at Canaccord Genuity, highlighted the importance of Tesla’s strategy of offering vehicles with software upgradability, seeing it as a potential catalyst for future market penetration.
Despite the enthusiasm surrounding FSD, there are skeptics who question the technology’s level of autonomy relative to its cost, expressing dissatisfaction with its performance. Regulatory bodies also remain cautious about fully embracing autonomous driving technology.
While the optimism around FSD is high, Tesla’s stock saw a decline at the end of Thursday’s trading session, according to reports.
