Just days after praising improvements to Tesla Inc. (TSLA)'s Full Self-Driving technology, investor Ross Gerber is now highlighting what he sees as a fundamental problem with the system. The issue? Maps.
The Mapping Problem
Gerber, co-founder of investment firm Gerber Kawasaki, took to X on Monday to outline his concerns. "Tesla FSD only works as well as the maps it uses," he wrote, adding that this has become something that "needs to be addressed."
It's a straightforward observation with significant implications. Self-driving systems are only as good as their understanding of the world around them, and if your maps are off, even sophisticated AI can struggle.
Tesla's Approach Versus Waymo's Strategy
To illustrate the point, Gerber reposted a comparison from Grok, the AI model developed by Elon Musk's xAI, which analyzed how Tesla's mapping stacks up against Alphabet Inc. (GOOGL) (GOOG)'s Waymo.
According to Grok, Tesla "uses crowd-sourced data from its vehicle fleet to generate and update maps dynamically for FSD," while Waymo takes a different route with "high-definition maps created via LiDAR and sensors."
Each approach has its tradeoffs. Waymo's method delivers superior accuracy, which makes sense when you're building detailed maps with specialized hardware. Tesla's crowd-sourced strategy, on the other hand, enables "wider potential deployment" since it leverages data from millions of vehicles already on the road.
Recent Praise Meets Persistent Questions
Gerber's mapping concerns come shortly after he commended Tesla's latest FSD updates, which showed meaningful improvements over earlier versions. But praise doesn't mean the technology is ready for prime time.
Beyond mapping, Gerber raised another critical question: when will Tesla accept liability for FSD and remove responsibility from the driver? Such a move "would be a major admission of progress" from the electric vehicle maker, he noted. "Tesla taking the risk changes it to a level 3 or above system," Gerber explained, while acknowledging that FSD currently operates at Level 2 autonomy, which requires constant driver supervision.
European Expansion Amid Sales Struggles
Meanwhile, Tesla is pushing forward with its European FSD rollout. The company is offering free Supervised FSD rides to customers across Germany, France, Italy and other countries ahead of the technology's planned deployment in the region next year.
The timing is interesting given Tesla's current sales performance in Europe. The EV giant reported just 6,964 new registrations in the European market during October, representing a steep 48.5% year-over-year decline from the same period last year.
Whether improved autonomous driving features can help reverse that trend remains to be seen, but Tesla clearly believes the technology could be a differentiator in competitive European markets.
Price Action
TSLA slipped 0.01% to $430.14 at market close, further declining 0.36% to $428.60 in after-hours trading.