The report highlights Narayan’s coverage of the Consumer Cyclical sector with a focus on stocks such as Tesla, Ferrari, and the Mercedes-Benz Group. He has a success rate of 54.50% on his recommended stocks. Narayan’s report echoes points made by Tesla CEO Elon Musk regarding Full Self-Driving (FSD) systems. He notes that such systems could eventually be mandated by regulators as a life-saving tool, which is central to the investment thesis on the stock.
The report also includes some Tesla FSD capture in China, where it envisions several Level 2+ players, positioning Tesla as an industry standard for software. The report suggests that regulators may mandate Level 2+ as a life-saving tool and highlights the safety advantages of Tesla’s FSD system based on US accident data. The report also addresses concerns about potential piracy of the software by Chinese companies, emphasizing that FSD encompasses more than just software and includes millions of hours of driving data and algorithm training. It also discusses the possibility of Tesla licensing its software to other Original Equipment Manufacturers (OEMs) and the potential for rapid expansion of FSD in China.
Overall, the report outlines the potential impact and implications of Tesla’s FSD system, while also inviting contact for news tips.