Part 5/8:
The discussion then delves into the potential risks unleashed by regulatory scrutiny, particularly concerning Tesla's Full Self-Driving (FSD) technology. Should regulatory authorities shift perspectives, particularly around camera technology versus Lidar requirements for robotaxis, Levy signals that this could trigger additional volatility. History has shown that Tesla navigated previous regulatory challenges, but the ongoing concerns about safety incidents could fuel investor apprehension, influencing share prices significantly.
Levy elucidates that while Tesla's stock might have preempted concerns regarding this regulatory environment, investors remain wary of the overall success of Autonomous Vehicles (AVs) given the competitive landscape involving companies like Waymo.