Tesla (TSLA) Stock: The Self-Driving Update That Changes Everything for Investors

TLDR

• Tesla’s Full Self-Driving version 14 shows smoother operation and improved capability compared to earlier versions
• FSD version 14.1.7 traveled over 9,000 miles between critical disengagements according to crowdsourced data
• About 12% of U.S. Tesla fleet currently subscribes to FSD, generating revenue from hundreds of thousands of users
• Tesla started testing driverless Model Y robotaxis in Austin without human safety monitors on board
• Waymo currently performs 450,000 weekly driverless rides across five cities, expanding to 11 more by end of 2026

Tesla’s latest Full Self-Driving software update is drawing attention from investors as the company inches closer to autonomous driving capabilities. The release of FSD version 14 comes as Tesla begins testing completely driverless robotaxis in Austin, marking a turning point for the company’s autonomous vehicle ambitions.

Barron’s tested the new software in a Model Y around New York City. The system demonstrated cleaner execution and less jerky movements compared to previous versions. Passengers reportedly preferred the automated driving over human control. The car even handled snow conditions and airport runs without major issues.

Real-world performance data backs up the improvements. The crowdsourced tracking site teslafsdtracker.com reports FSD version 14.1.7 traveled more than 9,000 miles between critical disengagements. Critical disengagements refer to moments when the car does something potentially dangerous that requires driver intervention.

Tesla, Inc., TSLA

The system still requires human supervision at all times. Regulators haven’t approved eyes-off-road operation. The software faces ongoing scrutiny from federal and state authorities for violations involving lane markings and traffic signals.

Testing Without Safety Drivers

Tesla has begun operating Model Y robotaxis in Austin without human safety monitors inside. A video posted on X showed a black Model Y driving autonomously with no passengers. Elon Musk confirmed the testing on his social media platform.

The driverless tests represent a separate track from Tesla’s paying robotaxi service. Current robotaxis available to customers still include human supervisors. The company launched its paid robotaxi service in Austin in June with plans to expand to more cities in 2026.

Seven crash incidents involving Tesla’s supervised robotaxis were reported to NHTSA since the Austin service began. Multiple passenger videos online show instances of the vehicles breaking traffic rules. The removal of human safety drivers will test whether the FSD software can handle complex situations independently.

Market Competition Heats Up

Waymo operates at a larger scale with 450,000 weekly driverless rides across five cities. That number jumped 80% from 250,000 rides six months earlier. The Alphabet subsidiary plans to reach 11 additional U.S. cities by the end of 2026.

About 12% of the U.S. Tesla fleet pays for FSD subscription service. That translates to hundreds of thousands of subscribers generating recurring revenue. The current subscriber base alone doesn’t justify Tesla’s $1.5 trillion market valuation or its 200 times estimated 2026 earnings multiple.

Investors are betting on rapid expansion of Tesla’s robotaxi platform in 2026. The company’s stock valuation assumes AI-trained autonomous driving will unlock substantial earnings growth. Tesla stock was up 14% year to date heading into Monday trading.

Musk said during an xAI hackathon that unsupervised FSD is “pretty much solved” and currently going through validation. He predicted robotaxis without safety drivers in Austin within three weeks. Musk has acknowledged his tendency toward overoptimistic timelines in the past.

The robotaxi market could determine whether autonomous vehicles become profitable businesses or remain expensive research projects. Multiple companies are racing to develop autonomous technology for private vehicles and taxi services. Safety improvements remain the primary goal for all competitors.

Tesla reported the testing progress as FSD version 14 continues rolling out to more vehicles in its fleet.

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