Billionaire investors Stanley Druckenmiller and Ron Baron emphasize Tesla's Full Self-Driving (FSD) technology as a key component of the company's investment potential.
Druckenmiller's recent purchase of Tesla call options was previously linked to FSD value, though it was not explicitly confirmed. Ron Baron publicly presented a similar investment thesis, centering his outlook on Tesla around FSD.
Tesla's FSD business has measurable adoption. In the second quarter, Tesla reported 1.48 million active FSD subscriptions, a 56% year-over-year increase. Additionally, over 55% of new North American deliveries included the subscription feature in approved markets, indicating strong customer uptake.
Baron expressed skepticism about Tesla's humanoid robot ambitions, stating he was "not giving a lot to the robots" and describing them as "dystopian." This contrasts with Elon Musk's view of Optimus as a potential major product, though Optimus remains non-commercial and dependent on future progress.
The Robotaxi project is also in early stages, with paid Robotaxi miles still limited and some vehicles requiring human supervision due to regulatory and safety concerns. In contrast, FSD already has paying users, growing adoption, and recurring revenue.
Overall, FSD stands out as the most tangible element of Tesla's current investment story compared to Robotaxi or Optimus, which face ongoing development and regulatory hurdles. This makes FSD's adoption and revenue potential a central focus for investors like Baron and possibly Druckenmiller.
