As Tesla makes headlines with its progress in rolling out the advanced driver-assistance feature in China, one top tech investor, Mark Hawtin from GAM Investment Management, believes that the hype surrounding this development is misleading. Hawtin emphasizes that Tesla’s Full Self Driving service does not actually provide full autonomous driving capabilities, contrary to what many investors may believe. Rather than a groundbreaking leap, he describes it as an assisted-driver capability similar to what is already offered in the U.S. and U.K.
Following the news of Tesla’s milestone in bringing FSD to China, the company’s shares experienced a significant surge, marking their best performance since March 2021. Buoyed by the removal of restrictions by Chinese authorities and positive statements from CEO Elon Musk regarding the production of more affordable models, investors have been bullish on Tesla’s prospects in the Chinese market. However, Hawtin cautions against overestimating the current capabilities of Tesla’s self-driving technology, noting that true autonomy is still several years away.
While Tesla’s potential collaboration with China’s Baidu for accessing mapping services may seem like a strategic move, Hawtin believes that it benefits Baidu more in the short term. He points out that the Chinese market is highly competitive, with numerous players like BYD, Huawei, Xpeng, Li Auto, and Xiaomi offering technology capable of Level 2 autonomy. Despite Tesla’s existing presence in the Chinese market, its FSD technology is limited in functionality, primarily allowing automated lane changing.
Looking ahead, Hawtin predicts that it will take at least five to 10 years before Tesla can achieve a version of FSD that truly embodies autonomous driving. While Tesla’s ambitions are high, the current reality is that its technology falls short of meeting the standards for full autonomous driving. With competitors actively developing their own autonomous solutions, the race for dominance in the market is fierce. Although Tesla’s brand carries weight in the industry, the road to achieving true autonomy is paved with technological and regulatory challenges.
While Tesla’s progress in bringing its Full Self Driving service to China is a positive development, it’s essential to maintain a realistic perspective on the current capabilities of the technology. Investors should exercise caution and not get swept up in the hype surrounding Tesla’s advancements. As the self-driving landscape continues to evolve, Tesla will need to demonstrate substantial improvements in its FSD technology to remain competitive in the global market.
Leave a Reply