Tesla's Full Self-Driving System Faces Safety Concerns: Audio Detection for Emergency Vehicles

Tesla Inc. (TSLA) is currently under scrutiny for a significant safety concern regarding its Full Self-Driving (FSD) system, particularly its ability to detect emergency vehicles. This issue was highlighted by prominent investor Ross Gerber, who is also the CEO of Gerber Kawasaki Wealth and Investment Management.

What Happened: In a statement posted on X, Gerber noted that while the latest version of FSD, 13.2.2, has made strides compared to its predecessors, it still does not achieve complete autonomy. One major limitation he pointed out is the system's reliance primarily on visual inputs. To address this, Tesla is reportedly developing audio detection technology that would enable the vehicle to recognize the sounds of approaching emergency vehicles.

“Tesla is now working on adding audio capabilities so it can detect when an emergency vehicle is nearby. Humans use more than one sense to drive,” Gerber stated, stressing the importance of enhancing multi-sensory detection in autonomous driving technology.

Despite improvements in FSD 13.2.2 over version 12, it does not reach the anticipated level 5 autonomy. Gerber's remarks specifically indicated the necessity for Tesla to prioritize this critical safety issue. As he expressed, "this is a critical safety issue that Tesla needs to address!"

This development in audio detection comes as Tesla is continuously pushing to expand its FSD functionalities. Earlier in December, the company began the rollout of FSD version 13, which Elon Musk, Tesla’s CEO, claimed would enable drivers to travel five to ten times more autonomously before needing to intervene.

Gerber, a proud owner of the new Cybertruck, also observed that the FSD performance in this latest model seems to lag behind other Tesla vehicles. However, he commended Tesla’s software capabilities overall, asserting they remain significantly better than what competitors offer. He did acknowledge the progress made by rivals such as Rivian Automotive Inc. (RIVN).

Furthermore, Tesla has enhanced its infotainment system and is now offering a trial of SiriusXM services to Cybertruck owners. "Tesla's software is remarkably superior to that of any other vehicle, although Rivian is also making good improvements," Gerber commented.

Market Impact: Gerber's comments come amidst a bullish period for Tesla, with the company's stock recently exceeding the $420 mark. Analysts from Morgan Stanley have named Tesla as their top stock pick for 2025, citing advancements in autonomy and robotics as key factors for this recommendation.

Tesla also has plans to launch a ride-hailing service in Texas and California next year, which is dependent on securing regulatory approvals. Initial stages of this service may still require human drivers to comply with state regulations.

Price Action: On Tuesday, Tesla's stock closed at $462.25, reflecting a 7.35% increase for the day, with an additional rise of 0.64% during after-hours trading. So far this year, TSLA shares have surged by approximately 86.08%, as per data from Benzinga Pro.

According to consensus analysis from 33 analysts, Tesla holds an average price target of $280.41, with estimates ranging from a high of $515 to a low of $24.86. Recently, ratings from firms such as Baird, Mizuho, and Goldman Sachs suggest an average price of $446.67, implying a slight downside potential.

Tesla, Safety, FSD