This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) stock dips about 1% on early Monday after renewed debates over semi-autonomous driving and trade policy uncertainties.
The focus is on Level 3 systems, which allow drivers to look away in limited conditions but require timely control handoff. Industry experts, including former Waymo CEO John Krafcik and Bosch North America president Paul Thomas, have questioned whether these systems are practical or cost-effective.
Tesla’s Full Self-Driving system remains Level 2, requiring drivers to stay attentive. The company has begun a limited robotaxi service and aims to expand operations to select U.S. cities in the first half of 2026, competing with Alphabet-owned Waymo.
The broader auto market is watching closely as traditional automakers and Chinese EV makers incorporate advanced driver-assist features.
Regulatory caution, high development costs, and potential safety setbacks may affect how quickly Tesla’s autonomous ambitions scale and how economically viable the service becomes.