Tesla’s edge in self-driving technology

Tesla might have a head start in the race for self-driving cars, according to Bloomberg Intelligence analyst Steve Man. In a recent chat on “Bloomberg Tech” with hosts Caroline Hyde and Ed Ludlow, Man explained why Tesla could outpace competitors like Waymo. One big reason is Tesla’s massive fleet. With millions of vehicles already on the road, Tesla collects a huge amount of driving data.

This information helps improve its self-driving software, called Full Self-Driving (FSD). Waymo, on the other hand, has fewer cars, making it harder for them to gather as much data. Tesla’s approach is also simpler and cheaper. They rely on cameras instead of expensive radar or LIDAR systems that Waymo uses. This makes Tesla’s technology easier to scale up and install in more cars.

Plus, recent changes in China are a game-changer. The country now allows Tesla to export driving data, which could speed up improvements to their system. However, Tesla’s FSD is still a Level 2 system, meaning drivers must stay alert and ready to take control.

While it’s not fully autonomous yet, the data Tesla gathers gives it a strong foundation for future growth. Man believes this could help Tesla roll out robotaxis—self-driving taxis—faster than others. Still, challenges remain. Safety concerns and regulatory hurdles could slow things down. But with its data advantage and cost-effective tech, Tesla is in a solid position to lead the self-driving revolution.