Part 8/11:
Market Dynamics and Regulatory Risks
Tesla’s approach to FSD relies heavily on vision-based AI, using cameras and neural networks, contrasting with competitors incorporating lidar and radar. This vision-only approach has advantages but also carries risks—regulatory clampdowns, especially as authorities scrutinize autonomous features.
Third-party data suggest that consumer valuations of FSD features are modest, and regulatory hurdles might slow adoption or impose restrictions. Tesla's move to collect massive real-world data and its rapid iteration cycle suggest they could become long-term winners despite short-term uncertainties.
Strategic Moves and Industry Positioning
Tesla continues to innovate in various areas: