Tesla’s Full Self-Driving Technology Puts European Automakers in a Bind

Tesla’s Full Self-Driving (FSD) v12 is a game-changer in autonomous vehicle technology. Unlike previous FSD technologies that relied on numerous sensors and pre-set algorithms, FSD v12 uses a neural network and data from just eight onboard cameras to allow the car to learn and adapt to various road situations autonomously. With the Tesla Model Y already being the best-selling car globally, the FSD technology is set to solidify Tesla’s position as a leader in the industry.

This has raised concerns among European automakers like BMW, who argue that the transition to electric vehicles (EVs) is happening too quickly. While the transition is necessary for climate change, it puts European manufacturers at a disadvantage as they try to manage both EVs and internal combustion engine (ICE) vehicles. BMW’s chief, Oliver Zipse, warns that the EU’s plans to ban ICE vehicles will result in the car market being dominated by non-European manufacturers.

According to a report by Sam Butler-Sloss, EVs could make up as much as 86% of global car sales within seven years. This rapid shift in the market poses a significant challenge for incumbent manufacturers who are now playing catch-up in software development, powertrain technology, supply chains, and EV manufacturing expertise. Tesla, along with China, has gained a substantial market share by leveraging economies of scale and pioneering network effects in the automobile sector.

The value of the auto industry in the future will be defined by the sophisticated software that governs these vehicles, such as Tesla’s FSD. Tesla’s CEO, Elon Musk, has stated that the long-term value of the company will come from AI and robots in both vehicles and humanoid forms. Financial analysts at Morgan Stanley have set a bullish share price target for Tesla, reflecting the potential of its AI technology.

– Exponential View
– Masterworks

– Full Self-Driving (FSD): Tesla’s autonomous driving technology that enables a vehicle to navigate and adapt to various road situations without human intervention.
– EVs: Electric Vehicles, which run on electric motors and rechargeable batteries instead of internal combustion engines.
– ICE: Internal Combustion Engine, which runs on gasoline or diesel fuel and produces exhaust gases.