Tesla, Inc. TSLA CEO Elon Musk has placed high hopes on its Full Self-Driving (FSD) software. However, the electric vehicle giant’s autonomous driving technology continues to be controversial. On Thursday, a tech entrepreneur made some shocking claims that further clouded the outlook for the technology.
Red Flags: Dustin Moskovitz, co-founder of Facebook (now Meta), expressed strong concerns about Tesla in a post on Meta’s Threads messaging app. He compared Tesla’s situation to the infamous collapse of energy company Enron, stating, “I know I sound crazy to most people who don’t follow $TSLA closely but at this point it really needs to be said. This is Enron now, folks.”
Enron executives systematically inflated their company’s financial performance for years, hiding billions in debt through a web of complex financial instruments. It eventually came crashing down, leading to one of the biggest corporate scandals in U.S. history.
Moskovitz, who also serves as CEO of work-management platform Asana, suggested that Tesla could face legal repercussions. “People are going to jail at the end,” he warned.
See Also: Everything You Need To Know About Tesla Stock
Skeletons In The Closet? Moskovitz accused Tesla of presenting misleading data about FSD capabilities. “The data doesn’t say what they claim it says, even when they make it up,” he stated. He further alleged that Tesla has “committed consumer fraud on a massive scale” through misrepresentations about FSD, vehicle ranges, and potentially even odometer readings.
There have been social media reports of Tesla vehicles displaying inaccurate odometer readings, potentially affecting range calculations. Moskovitz shared a social media post from a user who claimed a 20% discrepancy between their Tesla Model Y’s odometer and a Lexus RZ.
Tesla, however, has not responded to any of these allegations.
Questionable FSD Progress: To support his claims of fraudulent data, Moskovitz shared a Bloomberg chart on Tesla’s software sales revenue. “Tesla makes up more in revenue straight from their imagination every single quarter than my company does selling actual products in a year,” he quipped.
Moskovitz also questioned the recent update to Tesla’s FSD progress graph. He pointed out that Tesla AI celebrated achieving 1 billion FSD miles on April 3, shortly after the free FSD trial began on March 25.
“The new graph is humorously ambiguous wrt dates. Is ‘March 2024’ the 1st? The 31st? Why is the inflection *after* the 1B miles milestone in the new graph?” Moskowitz said. “I guess trying to avoid the obvious conclusion the inflection comes from the trial rollout.”
Tesla’s FSD: A Risky Gamble? The success of FSD is crucial for Tesla, as it forms the foundation of its planned robotaxi service. The company is scheduled to unveil its robotaxi program in August. However, concerns persist regarding the technology’s level of autonomy, safety, and regulatory approval.
While some analysts believe FSD could become a significant revenue driver for Tesla due to its recurring revenue model, they acknowledge it’s a long-term play. This adds pressure, especially with Tesla’s core electric vehicle business facing industry-wide challenges.
Tesla’s stock had been on a downward trend since the second half of 2023 but has shown some recovery since its first-quarter earnings announcement. The company’s confirmation of a low-cost model launch has offered investors a glimmer of hope.
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