We can debate whether or not the Full Self-Driving (supervised) system in cars made by electric vehicle giant Tesla (TSLA) is useful. The value of robotaxis and the like is profound, but occasionally, we have less savory tales of irresponsibility and outright laziness. The technical director of Euro NCAP, Richard Schram, recently weighed in as well, calling FSD “irresponsible.” Investors, though, were quite pleased, and gave Tesla shares a 4% boost in Tuesday afternoon’s trading.
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Forget margin or options. Here's how the pros trade TSLA“Dangerous and irresponsible,” was what Schram used to describe FSD, declaring there was a risk that drivers might become “over-reliant” on FSD, and it might be harder to “keep drivers in the loop.” However, Schram also tried out FSD in the United States, and discovered that it was an impressive system.
Schram also wished, perhaps naively, that Tesla would ultimately take “full responsibility” for what happens with FSD technology. Even Schram knows that this is almost certainly impossible, and followed up his own remarks by noting that, as long as Tesla keeps drivers responsible for use, regulators will hold Tesla responsible for letting drivers take the responsibility for use.
Another Departure
Meanwhile, Tesla took another blow from a departing staff member, as Jose del Corral departed the company to take a new job with Coinbase (COIN). Jose del Corral was Tesla’s head of product for customer experience, and leaves Tesla that much shorter on institutional knowledge.
Given that Tesla is basically shifting large parts of its product line away from retail vehicles, though, the impact of that loss of institutional knowledge may not be as pronounced as some fear. With Tesla moving to robotics, AI and energy, and away from electric vehicles—though not out of that market completely by any stretch—Tesla will likely be looking for new institutional knowledge sources anyway.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 32.34% rally in its share price over the past year, the average TSLA price target of $395.33 per share implies 6.96% upside potential.
