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Tesla (NASDAQ:TSLA) surges into the lead as the U.S. race for autonomous dominance heats up, with Morgan Stanley (MS) naming Tesla the best?positioned contender against China's tech juggernauts.
Analyst Adam Jonas points out that while China's factories can churn out more drones in a day than the U.S. manages in a year, Tesla holds unique strengths across six pillarsdata, robotics, energy, AI, manufacturing and even spacethat could help it close the embodied?AI gap.
Recent regulatory shifts from the U.S. Department of Transportation and NHTSA now let companies request waivers on certain safety rules, opening the door for faster self?driving deployments.
That matters for Tesla: it already has 7 million cars on the roaddata?rich platforms for AI trainingand is on track for more than 100 million by 2035. When its unsupervised robotaxi fleet debuts in Austin by late June, it could mark a crucial proof point, especially under Texas's more permissive rules.
Jonas and his team highlight that Tesla's Full Self?Driving beta has already logged billions of miles, tuning neural networks in real timean edge Chinese rivals like DeepSeek and Baidu EVs can't match without similar scale.
Tesla's battery lead also feeds into autonomy: energy?dense packs power both cars and the Dojo supercomputer ecosystem, accelerating AI training speeds. Investors should care because autonomous tech promises a multitrillion?dollar market, and the first movers could lock in network effects that cement their dominance.
Tesla's ability to blend hardware, software and charging infrastructure gives it a near?insurmountable moatif June's robotaxi rollout impresses, TSLA could outflank both legacy automakers and deep?pocketed Chinese startups.
With Tesla's Q2 earnings set for late July, shareholders will watch not just margins but any updates on robotaxi progress and regulatory feedbackbecause in this tight tech standoff with China, momentum this summer could set the pace for years to come.
This article first appeared on GuruFocus.