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FSD is incredible, but Tesla has a huge flaw with autonomy that cannot be overcome.

tesla (TSLA -6.08%) We’re rapidly improving FSD, and users are excited about version 12 of our software, which was built from the ground up with artificial intelligence. But Tesla may have a big problem.

In this video, Travis Hoium shows how Tesla’s business model may not be suitable for autonomous driving as competitors scale completely different and disruptive models.

*The stock price used is based on the closing price on April 1, 2024. The video was released on April 2, 2024.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an Alphabet executive, is a member of The Motley Fool’s board of directors. Travis Hoium works at Alphabet, Apple, and General Motors. The Motley Fool holds positions in and recommends Alphabet, Amazon, Apple, Microsoft, Tesla, and Uber Technologies. The Motley Fool recommends General Motors and the following options: Buy General Motors’ January 2025 $25 call, buy Microsoft’s January 2026 $395 call, and short Microsoft’s January 2026 $405 call. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may receive compensation for promoting its services. If you choose to subscribe through our links, we may earn additional revenue that supports our channel. Their opinions remain their own and are not influenced by The Motley Fool.

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