- Tesla remains at Level 2 supervised autonomy while some competitors have reached Level 3.
- Gavin Baker argues that Tesla’s scale of real-world driving data and customer-subsidized compute give it an advantage in AI efficiency and costs.
- Elon Musk confirmed development of a new AI training system, “Cortex 2”, aimed at supporting the company’s robotics program.
- Musk claims unsupervised Full Self-Driving is only “a few months away,” though FSD is currently classified as Level 2.
- Retail sentiment on Tesla’s stock appears neutral, with minimal gains seen in 2025 so far.
Tesla is facing renewed scrutiny over its progress in Full Self-Driving (FSD) technology after remaining at Level 2 supervised autonomy. The discussion was reignited after noted short seller Jim Chanos questioned why Tesla has not advanced beyond Level 2, especially as competitors such as Mercedes have obtained limited Level 3 certification for their own autonomous systems. According to Chanos in recent posts, Tesla began FSD development in 2014, yet still shares the Level 2 status with other industry offerings like GM’s Super Cruise and Ford’s BlueCruise.
Investment manager Gavin Baker countered Chanos’s view, stating in comments that Tesla’s extensive real-world data, gathered continuously from its vehicle fleet, provides a significant cost benefit over rivals that rely more on synthetic datasets. Baker argued that by using customers’ cars to run in-vehicle inference, Tesla cuts data center needs and capital spending, streamlining the AI training process. He described the company’s GPU clusters as highly efficient and indicated that these resources remain unmatched by most competitors.
Commenting on the exchange, Elon Musk endorsed Baker’s assessment. Musk added in his reply that the company’s robotics program, including the humanoid robot “Optimus”, is guiding the development of a new AI training system known as Cortex 2. He noted that this training approach will cater specifically to robotics, rather than just FSD.
At a recent shareholder meeting, Musk stated the company is “a few months away” from providing unsupervised Full Self-Driving capability, shifting Tesla’s own target for achieving higher levels of autonomy into 2026. Musk also announced plans to let drivers “text and drive” using supervised FSD in the near future, while not commenting on compliance with laws against phone use behind the wheel.
Currently, Tesla’s FSD remains classified at Level 2, with hands-off pilot programs confined to internal, controlled environments. Stock market data indicates that sentiment around Tesla stock is neutral, with the company’s share price rising just 0.1% in 2025, making it one of the weaker performers among major U.S. technology firms.
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