\nIt wasn\u2019t all doom and gloom, however. Stein\u2019s note said that there were some improvements in FSD from his previous test drive.
\n
![\"\"](\"https:\/\/newstoday24hour.com\/en\/wp-content\/uploads\/2025\/06\/gettyimages-1905670134.webp\")
<\/p>\nTesla CEO Elon Musk says anyone who doubts how valuable robotaxis will make the company should test drive its latest self-driving car. A Wall Street analyst did just that \u2013 and said the car almost crashed.<\/p>\n
The experience of WIlliam Stein, an analyst with Truist Securities, is not unique; others have also reported problems with Tesla\u2019s full self driving, or FSD, feature. But a note from Stein raises questions as to whether the autonomous driving and robotaxis Musk is betting Tesla\u2019s future on are as close as he claims.<\/p>\n
Tesla\u2019s FSD driver-assist feature is sold as an $8,000 option. It can navigate city streets and highways, as long as a human driver is ready to take over at any time. Musk claims FSD is safer than a human driver, and he has pegged Tesla\u2019s future on creating a fleet of robotaxis, carrying riders without a driver at the wheel.<\/p>\n
\u201cI would encourage anyone to understand the system better to simply try it out, let the car drive you around,\u201d he said on an investors call earlier this month after reporting disappointing second quarter financial results. \u201cOnce people use it, the they tend to continue using it. So it\u2019s vastly compelling.\u201d<\/p>\n
But there were problems when Truist\u2019s Stein recently tried a special \u201cdemo mode\u201d only available to Tesla employees during demonstration drives, he wrote in a note. He wrote it made a number of illegal maneuvers while in FSD mode, including switching lanes on a portion of highway with solid white lines indicating lane changes were prohibited.<\/p>\n
In addition \u201cthe Model Y accelerated through an intersection as the car in front of us had only partly completed a right-turn. My quick intervention was absolutely required to avoid an otherwise certain accident,\u201d he wrote. \u201cAnother intervention was required when a police officer used hand motions to signal to us to pull to the side of the road to allow a funeral procession to pass.\u201d<\/p>\n
The system is \u201cno better, arguably worse, than last time\u201d when he tested it in April, Stein wrote.
\nIt wasn\u2019t all doom and gloom, however. Stein\u2019s note said that there were some improvements in FSD from his previous test drive.
\n<\/p>\n
\u201cWhat really impressed us was how well the car adapted to challenging disruptions like lane closures, heavy potholes, and traffic flows that would confuse even experienced human drivers,\u201d he wrote. \u201cThe newer FSD version was more active in switching lanes, and we figured out how to set the top speed above 55 (a challenge we highlighted in our last report). The driving felt more natural overall than the prior test drive.\u201d<\/p>\n
Musk argues the company\u2019s planned robotaxi service could quintuple the value of Teslas because of their potential to make their owners\u2019 money independently and to be used far more hours of the day.<\/p>\n
He has also said that he believes that Tesla shares could be worth $5 trillion by the end of the decade. That\u2019s trillions more than any company today and far above Tesla\u2019s current market cap of $830 billion.<\/p>\n
But the company pushed back plans to roll out details of the robotaxi service originally set for early August to October 10 \u201cto make some important changes that I think would improve the vehicle,\u201d Musk told investors on the earnings call last week.<\/p>\n
The company\u2019s own earnings statement cautioned that timing of the start of robotaxi service \u201cdepends on technological advancement and regulatory approval.\u201d And while Musk said he\u2019s confident that will be no later than next year, he admitted on the call \u201cmy predictions on this have been overly optimistic in the past.\u201d<\/p>\n
Tesla, which does not have a public relations staff, did not respond to questions about the Truist note.<\/p>\n
Questions from regulators<\/strong> In January the National Highway Traffic Safety Administration ordered a recall of all 363,000 US vehicles with the feature. The safety regulator said the feature \u201cled to an unreasonable risk to motor vehicle safety based on insufficient adherence to traffic safety laws.\u201d<\/p>\n In December NHTSA ordered a recall of nearly all 2 million Teslas following a two-year probe by the agency of roughly 1,000 crashes in which the feature was engaged. It said Autopilot can give drivers a false sense of security and be easily misused in certain dangerous situations when a Tesla\u2019s technology may be unable to safely navigate the road.<\/p>\n NHTSA required a new recall of 1.8 million Tesla vehicles this week due to software in the cars not detecting an unlatched hood condition, which could cause the hood to open while driving. The problem will be fixed with an over-the-air software update.<\/p>\n","protected":false},"excerpt":{"rendered":" Tesla CEO Elon Musk says anyone who doubts how valuable robotaxis will make the company should test drive its latest self-driving car. A Wall Street analyst did just that \u2013 and said the car almost crashed. The experience of WIlliam Stein, an analyst with Truist Securities, is not unique; others have also reported problems with […]<\/p>\n","protected":false},"author":1,"featured_media":2388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[26,21],"tags":[],"yoast_head":"\n
\nSafety regulators have questioned FSD and the less advanced \u201cAutopilot\u201d driver assist feature intended for highways.<\/p>\n