A Morgan Stanley analyst has released a research report sharing their experience using Tesla Motors' (TSLA.US) FSD (Full Self-Driving system) on a round trip of approximately 1,400 kilometers between Westchester County, New York and Franklin County, Michigan.
The analyst noted that over 99% of the 1,400-kilometer journey was completed by the FSD system in their Tesla Model Y. During nearly 12 hours of driving, they did not need to touch the steering wheel or press any pedals. The analyst described this experience as transformative for travel methods, stating that the impact can only be truly understood through personal experience. While eye-tracking monitoring ensured they remained focused on the road ahead, the stress level was significantly reduced.
The FSD system did not encounter any mistakes or dangerous situations that the analyst could recall. In their experience, FSD performed very safely and confidently on highways. The analyst added that they cannot imagine purchasing any electric vehicle in the future without FSD or similar advanced ADAS features. They characterized this as game-changing technology that completely transformed their perspective on long-distance travel.
Additionally, during this journey, the Supercharger network experience was extremely convenient. Charging stations were strategically located near toll highways or major roads, all in safe areas with abundant amenities, rest areas, and dining options surrounding them.
The analyst stated that once accustomed to FSD, it becomes difficult to return to driving without it. They believe FSD functionality will eventually become standard in all Tesla Motors vehicles (and all automobiles) - similar to airbags - with the cost incorporated into the overall vehicle price.
The analyst maintains an "Overweight" rating on Tesla Motors stock with a target price of $410. The components of this target price include: core automotive business at $76, network services at $159 (assuming 65% penetration rate by 2040 with $200 average revenue per user), mobility business at $90, energy business at $68, and Tesla Motors as a third-party supplier at $17.