Tesla's FSD v13 Shows Progress but Raises Safety Concerns in Latest Test

Tesla FSD v13 'imperfections remain obvious': analyst By Investing.com

Investing.com -- Tesla's Full Self-Driving (FSD) version 13 impressed during Truist Securities' latest test, but analysts emphasized that "imperfections remain obvious" and prevent a full endorsement of the technology. In their fourth round of testing, Truist analysts reported that Tesla's (NASDAQ:TSLA) FSD v13 marked a significant improvement over previous iterations, completing a 15-mile round trip without requiring driver intervention. The evaluation was conducted on a new Model 3, driving from Tesla's White Plains, NY, showroom to a Starbucks (NASDAQ:SBUX) in Bronxville, NY, and back. Conditions were favorable, with clear skies and light traffic on New Year's Eve. "No interventions required, and very human-like driving behavior," the report stated, noting that FSD successfully navigated highway exits, traffic circles, and lane changes. However, the analysts identified key shortcomings that raised concerns. During the test, FSD failed to yield to a pedestrian at a crosswalk. "The pedestrian was waiting for cars to stop and a more mature or responsible driver would have yielded right of way, but FSD slowed suddenly and then re-accelerated through the crosswalk," Truist analysts explained. "We viewed this behavior as not inspiring a confidence of safety, but not worse than many less experienced or aggressive drivers." Another issue involved FSD's tendency to drive near the edge of its lane, coming uncomfortably close to barriers and other vehicles. Analysts theorized that this may reflect limitations in Tesla's reliance on a camera-only sensor system. "It's not clear whether imperfections are owing to the AI tech or the sensor cluster (which would be much more concerning)," the report stated. Tesla's AI projects, including FSD, play a crucial role in the company's valuation. Truist estimates that AI-related initiatives such as FSD, robotaxi services, and the Optimus robot account for 78% of Tesla's price target. "AI projects are highly significant to the stock," the report emphasized. While the zero-intervention drive demonstrates progress, Truist remains cautious. The analysts concluded that Tesla may eventually achieve full autonomy, but "it's just not ready for prime time (let alone a robotaxi service) yet."

Tesla Analyst Says FSD Test Drive Shows Imperfections, 'Not Ready For Prime Time Yet' - Tesla (NASDAQ:TSLA)

The test needed no driver interventions, but some issues are highlighted by the analyst that pose concerns. A fourth test of full self-driving from Tesla Inc TSLA left an analyst cautiously optimistic for the company's future in a continued series of reviews of the company's self-driving technology. The Tesla Analyst: Truist analyst William Stein maintained a Hold rating on Tesla with a $360 price target. Read Also: Tesla FSD Test Drive Terrifies Analyst's Son: 'Third Time Not The Charm' The Analyst Takeaways: A fourth test of a Tesla Model 3 with FSD v13 for Stein left the analyst feeling comfortable Tesla could solve autonomy in the future. "We increasingly view TSLA's long-term success as inextricably linked to its ability to transition FSD from supervised to unsupervised tech," Stein said. The analyst said the test needed no interventions, but "imperfections remain obvious." Past test drives using FSD revealed weaknesses in the Tesla technology, the analyst said. The fourth test was "more impressive" without the need for any interventions. While there were no interventions needed, Stein won't recommend FSD use. The analyst said the 15-mile round-trip test required no touching of the pedals or steering wheel. "FSD navigated around a double-parked car, and changed lanes on the highway logically. Driving was mostly smooth and human-like." The negatives of the trip were one moving violation and "some strange behavior" with FSD failing to yield to a pedestrian in a crosswalk one of the named issues. "We viewed this behavior as not inspiring a confidence of safety, but not worse than many less experiences or aggressive drivers." Stein also said the Tesla vehicle followed drivers "rather closely," which could pose a safety threat. The vehicle also lingered to the edge of its lane, coming closer to barrier walls than many drivers would prefer. "The imperfections increasingly seem to be related to sensors, not AI, which is a problem for TSLA." Stein said AI problems could be overcome quickly. Potential sensor issues could be more problematic, the analyst said. No interventions needed in the 15-mile loop is called "impressive" by Stein. The analyst said Tesla "may eventually 'solve' autonomy." "It's just not ready for prime time (let alone a robotaxi service) yet." TSLA Price Action: Tesla stock is down 6.66% to $376.78 on Thursday versus a 52-week trading range of $138.80 to $488.54. Read Next: Tesla Stock Tumbles On Q4 Deliveries: What's Going On? Photo: Jose Gil on Shutterstock TSLATesla Inc$377.05-6.63%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs