Tesla FSD Technology Reaches Inflection Point, Analyst Predicts

New Street Research analyst Pierre Ferragu believes Tesla's Full Self-Driving (FSD) technology could be reaching an inflection point, where its value becomes more apparent to investors. Ferragu made this prediction in a post on X, comparing the company's FSD opportunity to Apple's iPhone.

He argued that investors continue to view Tesla primarily as an automaker, but as consumers begin to see its cars as AI-powered transportation platforms, the addressable market could expand significantly. In other words, a Tesla is not just a car, it's a tool that gets you to work peacefully every morning.

Ferragu cited Tesla's better-than-expected second-quarter deliveries as an early sign of this potential shift. He added that giving investors '2 more quarters' would allow them to see where this trend is heading.

Tesla recently rolled out its robotaxi service in Miami, and RBC Capital has identified the company's robotaxi business as its biggest long-term growth opportunity, with a total addressable market of $4.2 trillion. RBC estimates that Tesla could create significant shareholder value even if it captures only a small share of this market.