What's Happening?
Tesla analyst Stephen Gengaro of Stifel forecasts a significant increase in adoption rates for Tesla's Full Self-Driving (FSD) suite. As more people experience the advanced driver assistance system, they
are expected to become more comfortable utilizing and paying for it. FSD, a Level 2 ADAS, offers a range of advanced driving techniques and is continually improving as Tesla collects data from its fleet.
Why It's Important?
The anticipated increase in FSD adoption rates is crucial for Tesla's growth and innovation in autonomous driving technology. As more drivers become comfortable with the system, Tesla can expand its market share and enhance its offerings. The adoption of FSD also aligns with CEO Elon Musk's compensation package, which requires ten million active subscriptions.
What's Next?
Tesla aims to increase the percentage of its fleet using FSD, currently at 12%, to meet strategic goals and improve customer experience. The company will continue to refine the system, making it more appealing to potential users and expanding its capabilities.
