Tesla’s self-driving tech is probably worthless on resale

Tesla self-driving tech

Short-seller Jim Chanos believes that Tesla’s self-driving technology holds little value in the resale market. Despite Elon Musk’s promise of self-driving Teslas by the end of the year, Chanos remains skeptical. He tweeted that the “Full Self Driving” package’s current value is likely close to zero in the retail market, and it depreciates faster than the vehicle itself. The FSD kit costs $15,000, and around 100,000 buyers have added the feature. 

Musk has long emphasized Tesla’s goal of achieving level 5 autonomy, but Chanos has been critical of the FSD tech and Tesla’s overall performance. Despite Chanos’s doubts, Tesla’s stock has seen a significant surge in 2023, although it currently trades below its 2021 peak. The market remains excited about Tesla’s potential in the AI industry, and pasting level 5 autonomy has contributed to the company’s $869 billion market cap.

Chanos, known for his successful short bets on companies like Enron and Wirecard, has repeatedly voiced concerns about Tesla’s FSD technology. He questions the value proposition for buyers and warns of the potential for obsolete technology in the future. While Tesla has continued to perform well in the stock market, Chanos remains unconvinced about the long-term prospects of its self-driving tech.

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