Tesla Reports Lower than Expected Figures Yet Offers Intriguing Prospects

Tesla Reports Lower than Expected Figures Yet Offers Intriguing Prospects

Tesla's Autonomous Driving Strategy Faces Industry Debate

Tesla, the electric vehicle (EV) giant led by Elon Musk, is pushing ahead with its ambitious plans for self-driving cars, betting on a camera-based system that eschews lidar lasers. This decision, however, has sparked debate within the industry, with some experts questioning the safety and robustness of Tesla's approach.

The auto business is currently challenging for Tesla, with its aging model lineup. The Models Y and 3 account for the majority of sales. Despite this, RBC Capital Markets analyst Tom Narayan maintains an "Outperform" rating for Tesla, with a price target of $319.

Tesla's Robotaxi, which uses eight cameras to provide 360° visual data, relies solely on cameras and artificial intelligence (AI), deliberately avoiding lidar. Musk argues that a camera-based system aligns better with how humans drive, as the road system is designed for intelligence, biological neural nets, and eyes.

However, many competitors like Waymo use lidar and radar as complementary sensor systems. Ford CEO Jim Farley publicly supports this approach, stating that lidar provides a safety net in conditions where cameras may fail, such as heavy rain or low light. Ford’s endorsement of lidar underscores industry concerns about relying solely on cameras.

Primary concerns about Tesla’s camera-only autonomous driving include phantom braking, limited perception in challenging conditions, and safety and consumer trust. Tesla's Full Self-Driving (FSD) software continues to advance, but it has been documented to cause unnecessary sudden braking, a phenomenon known as phantom braking.

In contrast, cameras may be "blinded" by poor weather or lighting, where lidar can still reliably detect obstacles. Critics argue that a lack of sensor redundancy could impact the reliability and public acceptance of Tesla’s system compared to lidar-integrated models.

Despite these concerns, Tesla's FSD software outperforms some competitors in independent tests, even without lidar. Tesla is also rapidly expanding its Robotaxi service geography, signaling strong confidence in its vision-based approach.

In other news, Tesla's revenue fell by 12% to around $22.5 billion in the last quarter. Deliveries of electric vehicles declined by 13.5% to 384,122 vehicles. Tesla missed analysts' expectations in the last quarter, but the adjusted gross margin for Tesla was better than anticipated by the market.

Tesla launched its first Robotaxi service in Austin's downtown with a "handful" of cars and selected Tesla customers. Musk thinks Tesla could offer autonomous rides for half of the U.S. population by the end of the year, pending regulatory approval.

However, Tesla faces intense competition from other manufacturers, particularly Chinese brands outside the US market. In Europe, there have been significant sales declines for months. Tesla may not be able to meet demand for cars by the end of September.

Analysts at UBS maintain a "Sell" rating for Tesla with a price target of $215. Among electric vehicle manufacturers, DER AKTIONÄR continues to favor BYD and Xiaomi.

In summary, Tesla is committed to replacing lidar with cameras complemented by AI, betting on human-like visual perception for autonomy. However, industry experts and rivals emphasize lidar’s benefits for improving safety and robustness, highlighting ongoing debates about the best technology mix for fully autonomous driving.

*References*

1. Tesla's Autopilot under investigation by U.S. traffic safety agency
2. Tesla's Robotaxi uses eight cameras to provide 360° visual data
3. Tesla's self-driving cars could be a game changer, but there are risks
4. Ford CEO Jim Farley endorses lidar for autonomous driving
5. Tesla's Full Self-Driving software outperforms some competitors in independent tests
6. Tesla's decision to eschew lidar for its autonomous driving system, as showcased in their Robotaxi, has instigated a significant debate within the technology and finance sectors regarding the best approach for autonomous driving.
7. Despite the debate, Tesla has continued to invest in business strategies that emphasize camera-based systems and artificial intelligence, arguing that these align better with human driving styles.
8. Meanwhile, competitors in the sports and business world, such as Waymo and Ford, are adopting a complementary sensor system that includes lidar and radar to enhance safety and reliable obstacle detection, particularly in adverse weather conditions.

Read also: