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Tesla’s in-house Full Self-Driving chip puts TSLA 4 years ahead of competition: analyst
Tesla’s decision to develop its Full Self-Driving (FSD) computer chip in-house has put it four years ahead of the competition, according to ARK Invest analyst James Wang.
Wang laid out the case for the all-electric car maker’s custom automotive-grade computer against the next-best options in the market, all Nvidia products, in an article on ARK Invest’s website. His stated goal in the piece was to clarify Tesla’s position and achievement with full self-driving in simple terms as well as explain why an off-the-shelf chip would not have accomplished the same feat.
Admittedly, Tesla’s Autonomy Day livestream debuting the arrival of its Full Self-Driving computer was chock full of very technical details that many outside the computer science world indicated were difficult to follow. Thus, Wang’s FSD simplification is helpful for gaining insight into Tesla’s autonomous driving progress in terms of the bigger industry picture.
In summary, by focusing only on what its particular needs were for its particular software demands, Tesla was was able to improve its chip’s performance efficiency to a level that has allowed it to “leapfrog” over competitors. Wang predicts that by 2021, Tesla will be ready to release its next generation FSD computer while its closest competitor in terms of optimal peak utilization is just coming to market.
Nvidia is a prominent and highly successful leader in computer chip design, and Tesla already uses its products for Hardware 2.5, the computer currently running the electric car maker’s Autopilot features. That said, the industry giant has three self-driving-focused chips in its lineup: Xavier (in production), Pegasus (readying for production) and Orin (still pending an official announcement).
Pegasus is a Level 5 self-driving computer, as is Tesla’s FSD; however, it has twice as many chips as FSD, consumes seven times more power than FSD, and is too big and expensive for the Model 3. Since Nvidia designs chips for a wide range of hardware manufacturers, much like the Windows and Android operating systems are designed to be flexible enough for different computer and smartphone hardware suites, their functionality cannot be overly streamlined for one system over another. In contrast, Tesla (like Apple hardware/software) can focus all of its autonomy efforts on its specific hardware and software needs, thus achieving a greater output than Nvidia’s product.

In a follow up to Tesla’s Autonomy Day presentation wherein FSD was compared to Nvidia’s Xavier computer, a chip designed for semi-autonomous driving only, the chip manufacturer published a company blog piece drawing attention to Pegasus’ capabilities as a better measure for analysis. As pointed out in Wang’s analysis, the FSD and Pegasus still do not achieve the same metrics, leaving Tesla well positioned amongst its self-driving computer peers. Despite the issue, though, Nvidia’s conclusion was a positive response to the car maker’s achievement: Tesla has raised the bar on self-driving and other car manufacturers need to get on board before falling too far behind.
During the Autonomy Day presentation, Tesla CEO Elon Musk crowned FSD as “objectively best in the world”, and James Wang’s analysis is yet another outline of why that is arguably the case. Tesla’s Full Self-Driving Computer (formerly known as Hardware 3) is currently being installed in all new production vehicles, and owners who purchased Full Self-Driving for a car produced in 2016 or later will receive a free upgrade to the FSD computer in the near future. Musk has further predicted that Tesla’s full self-driving software will be complete by the end of this year and fully operational by the second quarter of next year.
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Tesla is not sparing any expense in ensuring the Cybercab is safe
Images shared by the longtime watcher showed 16 Cybercab prototypes parked near Giga Texas’ dedicated crash test facility.
The Tesla Cybercab could very well be the safest taxi on the road when it is released and deployed for public use. This was, at least, hinted at by the intensive safety tests that Tesla seems to be putting the autonomous two-seater through at its Giga Texas crash test facility.
Intensive crash tests
As per recent images from longtime Giga Texas watcher and drone operator Joe Tegtmeyer, Tesla seems to be very busy crash testing Cybercab units. Images shared by the longtime watcher showed 16 Cybercab prototypes parked near Giga Texas’ dedicated crash test facility just before the holidays.
Tegtmeyer’s aerial photos showed the prototypes clustered outside the factory’s testing building. Some uncovered Cybercabs showed notable damage and one even had its airbags engaged. With Cybercab production expected to start in about 130 days, it appears that Tesla is very busy ensuring that its autonomous two-seater ends up becoming the safest taxi on public roads.
Prioritizing safety
With no human driver controls, the Cybercab demands exceptional active and passive safety systems to protect occupants in any scenario. Considering Tesla’s reputation, it is then understandable that the company seems to be sparing no expense in ensuring that the Cybercab is as safe as possible.
Tesla’s focus on safety was recently highlighted when the Cybertruck achieved a Top Safety Pick+ rating from the Insurance Institute for Highway Safety (IIHS). This was a notable victory for the Cybertruck as critics have long claimed that the vehicle will be one of, if not the, most unsafe truck on the road due to its appearance. The vehicle’s Top Safety Pick+ rating, if any, simply proved that Tesla never neglects to make its cars as safe as possible, and that definitely includes the Cybercab.
Elon Musk
Tesla’s Elon Musk gives timeframe for FSD’s release in UAE
Provided that Musk’s timeframe proves accurate, FSD would be able to start saturating the Middle East, starting with the UAE, next year.
Tesla CEO Elon Musk stated on Monday that Full Self-Driving (Supervised) could launch in the United Arab Emirates (UAE) as soon as January 2026.
Provided that Musk’s timeframe proves accurate, FSD would be able to start saturating the Middle East, starting with the UAE, next year.
Musk’s estimate
In a post on X, UAE-based political analyst Ahmed Sharif Al Amiri asked Musk when FSD would arrive in the country, quoting an earlier post where the CEO encouraged users to try out FSD for themselves. Musk responded directly to the analyst’s inquiry.
“Hopefully, next month,” Musk wrote. The exchange attracted a lot of attention, with numerous X users sharing their excitement at the idea of FSD being brought to a new country. FSD (Supervised), after all, would likely allow hands-off highway driving, urban navigation, and parking under driver oversight in traffic-heavy cities such as Dubai and Abu Dhabi.
Musk’s comments about FSD’s arrival in the UAE were posted following his visit to the Middle Eastern country. Over the weekend, images were shared online of Musk meeting with UAE Defense Minister, Deputy Prime Minister, and Dubai Crown Prince HH Sheikh Hamdan bin Mohammed. Musk also posted a supportive message about the country, posting “UAE rocks!” on X.
FSD recognition
FSD has been getting quite a lot of support from foreign media outlets. FSD (Supervised) earned high marks from Germany’s largest car magazine, Auto Bild, during a test in Berlin’s challenging urban environment. The demonstration highlighted the system’s ability to handle dense traffic, construction sites, pedestrian crossings, and narrow streets with smooth, confident decision-making.
Journalist Robin Hornig was particularly struck by FSD’s superior perception and tireless attention, stating: “Tesla FSD Supervised sees more than I do. It doesn’t get distracted and never gets tired. I like to think I’m a good driver, but I can’t match this system’s all-around vision. It’s at its best when both work together: my experience and the Tesla’s constant attention.” Only one intervention was needed when the system misread a route, showcasing its maturity while relying on vision-only sensors and over-the-air learning.
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Tesla quietly flexes FSD’s reliability amid Waymo blackout in San Francisco
“Tesla Robotaxis were unaffected by the SF power outage,” Musk wrote in his post.
Tesla highlighted its Full Self-Driving (Supervised) system’s robustness this week by sharing dashcam footage of a vehicle in FSD navigating pitch-black San Francisco streets during the city’s widespread power outage.
While Waymo’s robotaxis stalled and caused traffic jams, Tesla’s vision-only approach kept operating seamlessly without remote intervention. Elon Musk amplified the clip, highlighting the contrast between the two systems.
Tesla FSD handles total darkness
The @Tesla_AI account posted a video from a Model Y operating on FSD during San Francisco’s blackout. As could be seen in the video, streetlights, traffic signals, and surrounding illumination were completely out, but the vehicle drove confidently and cautiously, just like a proficient human driver.
Musk reposted the clip, adding context to reports of Waymo vehicles struggling in the same conditions. “Tesla Robotaxis were unaffected by the SF power outage,” Musk wrote in his post.
Musk and the Tesla AI team’s posts highlight the idea that FSD operates a lot like any experienced human driver. Since the system does not rely on a variety of sensors and a complicated symphony of factors, vehicles could technically navigate challenging circumstances as they emerge. This definitely seemed to be the case in San Francisco.
Waymo’s blackout struggles
Waymo faced scrutiny after multiple self-driving Jaguar I-PACE taxis stopped functioning during the blackout, blocking lanes, causing traffic jams, and requiring manual retrieval. Videos shared during the power outage showed fleets of Waymo vehicles just stopping in the middle of the road, seemingly confused about what to do when the lights go out.
In a comment, Waymo stated that its vehicles treat nonfunctional signals as four-way stops, but “the sheer scale of the outage led to instances where vehicles remained stationary longer than usual to confirm the state of the affected intersections. This contributed to traffic friction during the height of the congestion.”
A company spokesperson also shared some thoughts about the incidents. “Yesterday’s power outage was a widespread event that caused gridlock across San Francisco, with non-functioning traffic signals and transit disruptions. While the failure of the utility infrastructure was significant, we are committed to ensuring our technology adjusts to traffic flow during such events,” the Waymo spokesperson stated, adding that it is “focused on rapidly integrating the lessons learned from this event, and are committed to earning and maintaining the trust of the communities we serve every day.”