A former senior Tesla (TSLA) executive has said that Elon Musk’s focus on vision-only technology is its “Achilles heel” when it comes to self-driving and is leaving it trailing well behind rival Google (GOOGL)-owned Waymo.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
But he is confident that the Novak Djokovic like Musk is capable of turning the company’s fortunes around.
Wrong Technology
Peter Bardenfleth-Hansen, former business development head for the EMEA region, told BBC Radio 4 today that the group’s self-driving strategy has “gone wrong.”
He said: “Elon has been very vocal about this for 10 years now, promising that autonomous vehicles were coming next year and then the year after. He has a lot riding on this, but we are seeing that the vision-only technology is the Achilles heel compared to Waymo’s lidar. Waymo is winning.”
His comments followed reports of a number of incidents involving Tesla’s self-driving Robotaxis, which were launched in Austin, Texas last weekend. For now, Tesla is conducting the test robotaxi drives with about 10 to 20 of its Model Y SUVs in a limited, geofenced area.
According to traditional and social media outlets, these included the cars exceeding speed limits, veering into the wrong lane, continuing straight ahead after signaling a left-turn, and braking in the middle of a crosswalk.
Heckling Musk
The U.S. National Highway Traffic Safety Administration (NHTSA) said it is reviewing the incidents and will take action as required.
However, according to analysts, user feedback to the trial has been largely positive, noting smooth rides.
The mixed launch is another headache for Musk and for Tesla, whose stock has been battered this year as a result of slumping global sales of its EVs, apathy over its vehicle designs, and increased competition from China.
Musk’s close relationship with President Trump has also hit the brand’s reputation.
However, Hansen said Musk will survive these blows, even comparing him to multi-Grand Slam winning tennis player Novak Djokovic. “Never bet against Elon Musk. He has an ability to come back. He’s like Djokovic in that he plays better when there is a lot of heckling going on. He performs in headwinds,” he said.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 14 Buy, 12 Hold and 9 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $291.31 implying an 10.33% downside.
