Tesla’s Full Self-Driving Gains Traction
Billionaire investor Ron Baron claims now is the right time to buy Tesla (NASDAQ: TSLA) stock, emphasizing the adoption of Full Self-Driving (FSD) technology as a key driver. During the second quarter, Tesla reported 1.48 million active FSD subscriptions, a 56% increase year over year, and noted that over 55% of new deliveries in North America feature the activated subscription.
Baron and fellow investor Stanley Druckenmiller are focusing their interest on FSD rather than Tesla’s future projects like Robotaxi and Optimus robots. While FSD represents a rapid-growth, high-margin business for Tesla, the Robotaxi initiative still operates on a limited scale, and Optimus has yet to materialize as a commercial product.
Despite the positive outlook for FSD, Baron acknowledges Tesla’s stock may still be expensive compared to traditional auto manufacturers like General Motors and Ford. However, the push for FSD suggests Tesla is transitioning towards a more platform-oriented business model that could redefine its valuation metrics.
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