Tesla Bull Adam Jonas Says Elon Musk's EV Giant Has "Solved" Autonomous Driving, Predicts $1.2 Billion Annual FSD Revenue

Morgan Stanley analyst and Tesla Inc. bull Adam Jonas says that Elon Musk's EV giant has solved autonomous driving.

In a new investor note released by Jonas, he claimed that the automaker had "solved" autonomous driving enough to "pull the safety driver at scale in major metros," Jonas said in the note. The analyst also said that the only thing stopping the automaker from pulling the onboard safety operators from its Robotaxis is Tesla's "own abundance of caution."

"Our understanding is that there is no other explicit regulatory approval required to pull drivers in Texas," Jonas said. The analyst wrote that Tesla's total number of active vehicles (parc) around the world would be 8 million by the end of 2025.

Jonas predicted that 12% FSD penetration among customers at $99/month could translate to "approx $300mm of quarterly FSD revenue or $1.2bn annualized FSD revenue at a year-end exit rate," Jonas said, reiterating his bullish stance on the automaker.

The note comes following Tesla's third-quarter earnings call, where Musk predicted that the company would be removing the onboard safety driver from its Robotaxis in Austin by the end of the year. However, the billionaire backtracked on the goal of serving over half the U.S. population with Tesla robotaxis, now maintaining that Tesla would expand the service in up to 10 major cities.

It's worth noting that Tesla's Full Self-Driving (FSD) is currently being investigated by NHTSA after the agency said it received reports of various traffic violations and multiple accidents involving Tesla vehicles on FSD or Autopilot.

Meanwhile, Future Fund LLC's managing director, Gary Black, said that Tesla sales would see a surge if the automaker can solve autonomous driving. The comments coincided with Tesla Model Y claiming the best-selling car title in Europe during September.

Meanwhile, Wedbush Securities' investor Dan Ives reiterated his bullish views on Tesla, predicting that the EV giant's Robotaxi is the "biggest competitive threat" to Uber Technologies.

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