‘Investors Need More Proof of Real Autonomy,’ Says MS as Tesla’s FSD Nears 10B Miles
perigon
Last updated: April 14, 2026
Tesla's Full Self-Driving (FSD) system is nearing 10 billion miles driven globally. Despite this milestone, Morgan Stanley analyst Andrew Percoco has expressed concerns regarding the system's progress and future market adoption. The firm has lowered its earnings per share (EPS) estimates for Tesla for the upcoming years.
- Tesla's FSD system is rapidly approaching 10 billion miles of real-world usage, a significant marker of its development and deployment.
- Morgan Stanley analyst Andrew Percoco has lowered his earnings per share (EPS) estimates for Tesla for both 2025 and 2026.
- This downward revision in EPS forecasts suggests a more cautious outlook on Tesla's financial performance, potentially linked to the FSD system's rollout and market acceptance.
- Percoco also noted that the market is anticipating future price cuts for Tesla's vehicles, indicating a potential pricing strategy adjustment.
- The analyst maintains an "equal-weight" rating on Tesla's stock, reflecting a balanced view of its investment potential.
- Furthermore, Percoco highlighted that Tesla's autonomous driving technology is not the sole factor driving its valuation, suggesting other aspects of the company's business are also considered.
- The anticipation of further price reductions by the market underscores ongoing competitive pressures and evolving consumer demand dynamics in the electric vehicle sector.
