Tesla Motors (TSLA) – ‘AI Day II is already a win for Tesla’: How Musk, FSD and humanoid robot updates can silence critics
On September 30, 2022, Tesla Inc. TSLA will host its second annual AI Day. Managing Partner of Loup Ventures Gene Munster actions his take on what the event means for Tesla investors.
What happened: The second annual AI Day will showcase artificial intelligence, software and chip development and other technology advancements for the leader in electric vehicles.
Munster is excited about the event as he provides company and CEO updates Elon Musk.
“It serves a second purpose of outlining the company’s progress and its long-term vision on the subject,” Munster said.
Munster expects this year’s event to be similar to the first AI Day, with a focus on the humanoid robot Optimus and Tesla’s complete self-driving.
“AI Day II is already a win for Tesla. As investors, we believe AI Day will be a combination of hard-to-understand technical jargon and optimistic comments from Elon regarding FSD’s timing.
Related Link: Gene Munster’s Second Quarter Earnings Review With Benzinga, What Are His Favorite Tech Stocks For 2023?
Why it matters: Munster said some people, including Tesla investors, might feel like little was added to Tesla’s story at the event.
“This takeaway misses the point: autonomy is coming, and no other automaker has made more progress than Tesla in advancing its potential,” Munster said. “Eventually, Tesla will succeed and FSD will be delivered. And, once again, the company will be years ahead of its competitors.
Munster says Tier 5 FSD has been mentioned by Musk since 2018, but the technology currently costs $15,000 and is in the Tier 2-3 range. An update Tesla released recently provided improved functionality, according to Munster.
“We believe the latest updates underscore how even some of FSD’s basic driving behaviors still need to be refined.”
Munster said AI Day is a chance for Tesla to showcase use cases for FSD and how the technology is advancing to save lives, which could help naysayers who think it will never be approved by the legislators.
FSD critics cited by Munster include NHTSA, Ralph Nader and The Product of Dawn.
Along with the focus on FSD, Munster sees AI Day as a chance for Tesla to show off a working Optimus prototype, which Musk alluded to.
“While the odds of seeing a working prototype at the event are low, we consider Tesla to describe its long-term humanoid opportunity hurdles as time well spent given the size of its addressable market.”
Munster said the global market for physical labor is larger than that for U.S. manufacturing labor.
“It’s a huge market, even bigger than the $2.5 trillion in annual global car sales.”
While AI Day II could offer repeats of the first annual event, Munster shares why investors should be excited to get an update on FSD and Optimus’ progress and what it could mean for the future of the company.
TSLA Price Action: Tesla shares fell 2.51% to $270.21 on Friday.
Photo: created with an image of Steve Jurvetson on flickr