On Thursday, Truist Securities maintained its Hold rating on Tesla stock (NASDAQ:TSLA), with a steady price target of $360.00. The firm's analyst emphasized the growing importance of Tesla's Full Self-Driving (FSD) technology in assessing the company's long-term success. The transition from supervised to unsupervised FSD technology is seen as a critical factor for Tesla.
The analyst's commentary highlighted the evolution of their perspective on Tesla's FSD capabilities, noting that initial reviews found significant issues with the technology. However, a recent test of the FSD version 13 showed improvements, with no interventions required during the drive. Despite this progress, the analyst pointed out that the technology still has noticeable imperfections.
The distinction between the sources of these imperfections is crucial for Truist Securities. The firm points out that if the imperfections stem from the AI technology, it would be less concerning than if they are due to the sensor cluster. The latter would pose a more significant issue for Tesla.
Tesla's FSD technology has been under close scrutiny, as it is a significant aspect of the company's value proposition and future growth strategy. The analyst's observations suggest that while there are improvements, there is still a way to go before the technology can be recommended for use without reservations.
The maintained Hold rating and price target reflect a cautious but observant stance on Tesla's stock, as Truist Securities continues to evaluate the advancements and potential of Tesla's FSD technology. Investors and the market at large will be watching closely as Tesla works to refine its self-driving capabilities, which are central to its innovative edge in the automotive industry.
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