Analyst Argues Tesla Is Closer Than Many Investors Believe
Tesla (NASDAQ:TSLA) has effectively reached a major milestone in autonomous driving, according to Piper Sandler analyst Alexander Potter, who believes the company has solved many of the challenges that have long stood in the way of fully self-driving vehicles.
In a research note, Potter laid out several reasons supporting his view that Tesla’s Full Self-Driving technology has achieved Level 4 autonomy across most driving scenarios, despite continued skepticism from some investors.
The analyst noted that comparisons with Waymo often dominate discussions with clients, particularly because of Waymo’s larger robotaxi deployment. He also acknowledged that the absence of a common industry standard for safety data makes it difficult to judge competing systems objectively.
Nonetheless, Piper Sandler maintained its Overweight recommendation and reiterated that Tesla has “solved the self driving puzzle.”
Corporate Actions Suggest Growing Confidence
Among the indicators cited by Potter was Tesla’s decision to provide insurance incentives tied to FSD usage.
The analyst views this as a meaningful signal that Tesla is comfortable with the technology’s safety profile and expected performance.
Another factor was the launch of Cybercab production. Manufacturing of the autonomous vehicle, which has neither steering wheel nor pedals, began in April and is already producing hundreds of units each week.
Piper Sandler estimates that the related production facilities could cost “several hundred million USD (if not $1B+),” suggesting a substantial commitment to the programme.
FSD Adoption Appears to Be Broadening
Potter also pointed to Tesla’s decision to disclose subscription figures for FSD during the first quarter of 2026.
According to the analyst, this suggests that “FSD is ready for dissemination beyond early adopters.”
Tesla’s robotaxi programme is also expanding rapidly. The service now operates throughout the Austin metropolitan area, including interstate routes, and management is targeting launches in seven additional cities by the first half of 2026.
First-Hand Experience Supports the Investment Case
Beyond operational metrics, Potter referenced his own use of Tesla’s autonomous driving software.
He said a Tesla vehicle transported him from Missoula to Minneapolis during April with very little need for driver intervention.
Summarising the experience, Potter wrote: “There’s no substitute for personal experience.”
More about Tesla
Tesla develops electric vehicles, autonomous driving software, energy storage systems and renewable energy technologies. The company views artificial intelligence and self-driving transportation as central pillars of its future growth strategy and continues to invest heavily in expanding both its autonomous vehicle capabilities and robotaxi network.
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