Tesla Analyst Says Current FSD Version Cannot Enable Autonomous Driving: But Retail’s Unmoved

Piper Sandler analyst Alexander Potter believes that the current version of Tesla Inc.’s (TSLA) full self-driving (FSD) driver assistance software cannot support truly autonomous vehicles.

However, the analyst kept an ‘Overweight’ rating on the shares with a $400 price target, as per TheFly. Tesla’s FSD is the largest contributor to Piper Sandler’s price target.

Following an investor call with Elias Martinez, creator of the FSD Community Tracker, Piper noted that it has been over four months since Tesla unveiled the latest version 13 of its FSD software. Since then, no major updates have been released, it added.

However, the analyst believes Tesla was likely focused on ensuring a safe launch for Robotaxis in Austin during this period.

Tesla is eyeing a pilot launch of its robotaxis in Austin by June. The company will initially deploy its Model Y SUVs equipped with FSD as Robotaxis until later, when it starts production of its dedicated robotaxi product called Cybercab, which has no pedals and only two seats. Cybercab is expected to go into production only in 2026.

Tesla CEO Elon Musk said last month during the first quarter earnings call that the company is still considering the number of vehicles to deploy in Austin. “...maybe 10 or 20 vehicles on day one,” Musk said.

The Tesla CEO added that the company intends to deploy Robotaxis in other cities in the U.S. by the end of the year. However, the FSD software has yet to enable autonomous driving and requires active supervision.

On Stocktwits, retail sentiment around Tesla stock remained unmoved within the ‘extremely bullish’ territory while message volume remained at ‘low’ levels.

TSLA stock has been down by about 28% this year but has been up by over 48% over the past 12 months.

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