The Impact of DeepSeek on Tesla: The Company Could Benefit from DeepSeek’s Low-Cost AI Models, Analysts Say
Analysts at Piper Sandler dismissed worries about DeepSeek’s AI developments’ possible effects on Tesla, saying that, at worst, they would have no effect. According to a research note by Piper Sandler, Tesla may gain from DeepSeek’s capacity to create high-performing AI models at a cheaper cost. The company also stressed that DeepSeek‘s artificial intelligence strategy differs significantly from Tesla’s.
As a consumer of GPUs (a spender of capex), Tesla may actually benefit from this trend. Tesla is pursuing a different kind of artificial intelligence (Elon calls it ‘real world A.I.’). Instead of using the Internet as a trove of Test-Based data to train Chatbots, Tesla is using Vehicles as a trove of Camera-Based data to train Robots,
the analysts
Tesla’s Camera-Based FSD Strategy Keeps Rivals 5-10 Years Behind, Analysts Say
Tesla’s fleet of cars designed to gather data for Full Self-Driving (FSD) technology is reportedly its competitive advantage. To match Tesla‘s data collection capabilities, rivals would need comparable production systems and labor skills, Piper Sandler noted.
In this regard, we think Chinese auto companies are laggards. Xiaomi’s CEO has stated his company is perhaps 5-10 years behind Tesla,
the analysts
Tesla’s distinct concentration on camera-based data and its established edge in FSD development, according to the business, position the company to maintain its leadership position in its niche. In addition, Piper Sandler kept its $500 price target and overweight rating on Tesla stock.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment