Elon Musk's Tesla Faces FSD Uptake Challenge As Only 2% Of Free Trial Users Subscribe, Gary Black Terms The Figure 'Disappointing'
Portfolio Pulse from Benzinga Neuro
Tesla Inc. (NASDAQ:TSLA) faces a challenge with its Full Self-Driving (FSD) technology as only 2% of free trial users subscribe, significantly below the expected rate. Gary Black of Future Fund highlighted the low subscription rate, based on data from Yipit, and suggested Tesla needs to investigate the reasons behind this. The low uptake raises concerns about the market's expectations for Tesla's FSD technology, especially with the latest version, FSD v12.3, and following Tesla's decision to delay FSD deployment on Cybertruck vehicles.
May 14, 2024 | 1:47 am
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Tesla's significantly lower than expected FSD subscription rate could impact investor sentiment and potentially the stock price, as it raises concerns about the value proposition of Tesla's FSD technology and its future revenue potential from this service.
The low subscription rate for Tesla's FSD service, as highlighted by Gary Black and based on Yipit data, indicates a potential lack of consumer interest or perceived value in the service at its current price point. This could lead to lower than expected future revenues from this service, affecting investor sentiment and possibly the stock price in the short term. The news directly impacts Tesla, as it suggests a challenge in monetizing its FSD technology, which has been a significant part of its innovation narrative.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100