Tesla's Response to Full Self-Driving Safety Concerns

Tesla Inc. (TSLA) faces scrutiny regarding a "critical safety issue" related to its Full Self-Driving (FSD) system's capability to detect emergency vehicles. This concern was raised by investor Ross Gerber, who serves as the CEO of Gerber Kawasaki Wealth and Investment Management.

Improving Detection Capabilities: According to Gerber's comments shared on social media, the latest update—FSD version 13.2.2—shows advancements compared to earlier versions but still does not achieve full autonomy. He highlighted that Tesla is currently working on integrating audio detection features that would help the FSD system recognize approaching emergency vehicles, addressing one of its significant limitations as it primarily relies on visual input.

“Tesla is now working on adding hearing capabilities so it can be aware of emergency vehicles nearby. Humans utilize multiple senses when driving,” Gerber emphasized, underscoring the necessity for robust multi-sensory systems in autonomous vehicles.

While FSD 13.2.2 has made notable improvements from version 12, it still has not reached Level 5 autonomy. Gerber reiterated that this issue is crucial for enhancing safety and that Tesla must prioritize this development.

Ongoing Improvements: Tesla is actively refining its FSD functionality. Earlier in December, the company began rolling out FSD version 13, which Elon Musk, Tesla's CEO, claims will significantly enhance the vehicle's autonomous driving capability, allowing it to travel five to ten times more miles before human intervention is necessary.

Gerber, who also owns a Tesla Cybertruck, noted that the FSD performance in this latest model seems to lag behind that of previous Tesla vehicles. Nevertheless, he commended Tesla's software capabilities, stating that they are "amazingly better than any other vehicle" while acknowledging the strides made by competitors like Rivian Automotive Inc. (RIVN).

Furthermore, Gerber appreciates Tesla's consistent enhancements to its infotainment features, including the recent addition of a complimentary trial for SiriusXM in his Cybertruck, expressing satisfaction with the return of favorite channels.

Market Performance: These developments occur alongside Tesla's robust stock performance, which recently exceeded the notable $420 mark. Analysts from Morgan Stanley have identified Tesla as their leading stock pick for 2025, attributing this choice to the company's ongoing progress in autonomy and robotics.

Looking ahead, Tesla plans to introduce a ride-hailing service in Texas and California in the coming year, conditional on regulatory approvals. Initial operations may still require human drivers to comply with state regulations.

Stock Update: As of the latest trading session, Tesla's stock closed at $462.25, marking a 7.35% increase for the day, and saw additional gains of 0.64% in after-hours trading. Year-to-date, Tesla's stock has surged by 86.08% according to market data.

Analysts have set a consensus price target of $280.41 for Tesla, with estimates ranging from a low of $24.86 to a high of $515, suggesting potential fluctuations in stock value.

Disclaimer: This content is intended for informational purposes only and does not constitute investment advice.

Tesla, FSD, Safety