Nasdaq Blog: Tesla Is The World’s Top High-Growth AI Stock

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In an article for the Nasdaq blog, Eric Cuka of The Motley Fool shared some thoughts on Tesla and his opinion that Tesla is the top high-growth AI (artificial intelligence) company in the world. Eric also added more thoughts in his video below. I’m going to quickly recap the video and blog, which you can also read here, and add in some thoughts of my own.

Tesla – World’s Top High-Growth AI Stock

Cuka pointed out what many forget about Tesla and focused on the company’s technological benefits. One key thing that Tesla does is crowdsource its data from both vehicles and drivers by using internal and external sensors and cameras. Cuka noted that Tesla has also started leveraging the interior camera above the rearview mirror in Models 3 and Y to make sure drivers are paying attention while using Autopilot.

This last bit of information is something that I think will help Tesla overcome the challenges of driver misuse.

The 3 Types Of AI Tesla Has

Cuka explained that Tesla has three types of AI and addressed them in the video. In a nutshell, these three types of AI are:

• Collect data that generates detailed maps which measure traffic speed, identify hazards, and more.
• Machine learning in the cloud provides over-the-air updates to Tesla’s entire fleet with the above detailed maps. At the individual car level, edge computing is leveraged for real-time decisions.
• Another level of AI enables vehicles to create other networks with other nearby Tesla vehicles to share insights and local information.

The third point, Cuka noted, is almost like a local area network (LAN) where the cars around you in the neighborhood can share data.

“So if there’s construction or traffic speed is slow or something like that, it actually can share from a nearby vehicle to your vehicle to help improve your overall experience.”

He added that although most of the details are secret and that it makes sense for Tesla to keep its intellectual data to itself, he knows that Tesla’s current AI is driven by a partnership with Nvidia.

Cuka, like Elon Musk, sees Tesla as an AI company above all else.

“I agree with Tesla’s CEO, Elon Musk: Artificial intelligence will be the key to Tesla’s future success, and it will be known as an AI company. …

“Tesla is the number one artificial intelligence company in my opinion in the world.”

He pointed out that many people know about the vehicle data but don’t really know about the driver data, such as hand placement and the overall operation of the vehicle.

“It uses internal sensors — sensors within the car — as well as external sensors outside of the car. And these sensors measure information about the driver.”

Cuka also analyzed a study from McKinsey and Co. that estimated that the total addressable market (TAM) for vehicle analytics will be worth $750 billion per year by 2030.

“So, $750 billion dollars total addressable market just for the data, the analytics — the total addressable market. That’s a massive amount of money and a lot of people might not understand how important this is and maybe just how far ahead of the pack Tesla is in this game.”

Tesla’s Advantage

Cuka noted that while Tesla is taking data collection and analytics very seriously, the competition isn’t anywhere near Tesla right now.

“This is something that’s really significant to note as a potential investor and I think it’s something that’s probably just overlooked or maybe misunderstood by most people.”

He added that, while researching, he was curious to know just how many miles Tesla has of driving data. Although the exact number isn’t known, Cuka pulled up a report from Bloomberg that stated Tesla has amassed 1.3 billion miles in data thanks to its Autopilot-equipped vehicles. He also pulled up one of the articles that I’d written about Tesla’s safety data — that it has logged just one crash per 4.41 million miles traveled on Autopilot.

“I think it’s safe to say that autonomous vehicles are the future. I think most people would agree. I think the problem is when people don’t understand it and they can compare all EVs as the same. So you say, ‘there’s a lot of competition from these other EVs.’

“Well, there might be electric vehicles, but do they have the ability to be fully autonomous? I’m not saying Tesla’s the only one, but when you look at their AI and the data they have, they’re way ahead of their competition, and I think that’s an important thing to understand. That competitive advantage is going to be significant when you think about that first-mover advantage.

“They’re light years ahead of the competition, so not all EVs are created equal and you have to make sure you understand that when you’re making those comparisons.”

Cuka also spoke about FSD (Full Self Driving) and other aspects of Tesla AI. You can watch his full video here.

Final Thoughts

I really find it interesting that Cuka found out that Tesla vehicles can communicate with other vehicles. I haven’t heard much about that. I do think he is actually pretty correct in his thoughts about Tesla being the world’s top high-growth AI stock. I attended AI Day in person, and since I have no background in AI, it was a pretty mind-numbing experience, but I saw many passionate AI-focused people there and the experience is one that sent me on a learning journey.

Many people think Tesla is just a luxury car company that sells pricey EVs or has an eccentric CEO who likes memes and 42069 jokes, but it’s so much more than that. The future is definitely interesting.

Related story: How Tesla AI Day Leads To Asteroid-Mining Robots