Tesla(US:TSLA) The Motley Foolยท2025-05-02 18:25Core Insights - Investors are increasingly interested in companies developing unsupervised full self-driving (FSD) technology, which could lead to a significant new industry [1] - Early entrants in the autonomous vehicle market, such as Pony AI and Tesla, are vying for market share and first-mover advantages [2] Tesla - Tesla's FSD technology is a major part of its high valuation, with the company having tested over 50,000 driverless miles [5] - The company reported first-quarter deliveries of 337,000, the lowest since 2022, which has raised concerns among investors [3] - Tesla's CFO stated that FSD technology is "safer than a human driver," and Musk is optimistic about its availability for personal use by the end of the year [6] - Wall Street analysts are divided on Tesla's stock, with 16 recommending a buy, 10 a hold, and 11 a sell, indicating mixed sentiments [7] - The average price target suggests a potential downside of about 3% from current levels [7] - The current valuation of Tesla is 135 times forward earnings, leading to skepticism about the sustainability of its hype [8] Pony AI - Pony AI has emerged as a significant challenger in the autonomous driving space, with a market cap of over $3 billion, and its stock has more than doubled since late April [9] - The company showcased its seventh-generation FSD system at the Shanghai Auto Show, which impressed investors and management claims it is much safer than human drivers [10] - Pony AI's CEO highlighted the company's advantage over competitors like Waymo due to better integration of technology and the ability to build its FSD system 70% cheaper [11] - A new partnership with Tencent will help accelerate Pony AI's path to commercialization, leveraging Tencent's WeChat and mapping technology [12] - Analysts have issued positive ratings for Pony AI, suggesting that its stock could double from current levels, indicating strong potential for growth [13][14]