Tesla advances FSD to v12.5 with major update, aims for full autonomy by 2025
Investing.com - Tesla Inc (NASDAQ:TSLA) has made significant advancements with the introduction of Full Self-Driving (FSD) v12.5, according to analysts at Ark Invest.
Last week, Tesla rolled out this new version to a select group of customer vehicles, featuring a hands-free driving system powered by its latest Hardware 4 (HW4) inference chip, produced by Taiwan Semiconductor Manufacturing Company (TSMC).
This update, which boasts a fivefold increase in the parameter count compared to previous models, offers a dramatic enhancement in performance. Users have reported smooth, uninterrupted, and confident AI-controlled drives lasting 45 minutes or longer.
Ark's research indicates that the upcoming update, FSD v12.5.X, is set to bring even more substantial improvements. It will combine the highway and city driving software into a single, end-to-end solution.
Tesla aims to reduce the intervention rate—the frequency at which drivers need to manually take control—before officially launching its robotaxi network.
During last week’s earnings call, Elon Musk emphasized Tesla's strategy to globalize its autonomous driving technology. The company plans to seek regulatory approval to deploy FSD in regions such as Europe, China, and other countries.
Musk expressed confidence that full autonomy could be achieved by late 2024, with a high probability by 2025. Concurrently, Ark's updated valuation model for Tesla anticipates that 2025 will most likely be the year when Tesla launches its robotaxi service.
However, their conservative estimates suggest a roughly 40% chance of this milestone slipping into 2026. Ark remains keen on monitoring FSD’s progression towards full autonomy.
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