GLJ Research founder Gordon Johnson has slammed Elon Musk-led Tesla Inc.‘s (NASDAQ:TSLA) lack of progress in its self-driving efforts, questioning the company’s valuation.
Self-Driving Makes Up 80-90% Of Tesla’s Valuation
In a post on the social media platform X on Sunday, Johnson slammed Tesla. “The $TSLA brass is admitting, in broad daylight, FSD is far from ready,” he said in the post, questioning why the comments from the automaker’s first quarter 2026 earnings call weren’t a “bigger story” in the media.
“That's 80-90% of $TSLA's valuation evaporating in plain sight,” he said, referring to Musk’s comments at the earnings call via a screenshot alongside the post.
Cybercab Production Boost
Amid the criticism of its self-driving efforts, Tesla announced that the company’s Cybercab had kicked off production, with a video shared by Musk showing a Cybercab driving itself around Tesla’s Gigafactory in Texas without any occupants present in the vehicle.
Elon Musk Confirms HW3 Setback
Musk confirmed last week that Tesla vehicles equipped with Hardware 3 (HW3) chips wouldn’t be able to achieve Unsupervised Full Self-Driving (FSD). He then shared that the automaker could offer owners a chance to upgrade their chips and camera hardware or offer discounted trade-ins for their vehicles.
The automaker reported its first-quarter earnings after the market closed on Wednesday, recording a Q1 2026 revenue of $22.71 billion, which showcased a 16% YoY jump. The figure also beat analyst revenue consensus of $22.39 billion. Tesla reported earnings per share of 41 cents, which exceeded market estimates of 37 cents per share.
According to Benzinga Edge Rankings, Tesla offers satisfactory Momentum, but poor Value. It also fails to provide a favorable price trend in the Long term.
Price Action: TSLA surged 0.23% to $377.16 during the after-hours trading session on Friday.
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