According to Sawyer Merritt, Morgan Stanley's latest note emphasizes that Tesla's decision to remove safety drivers from its Austin autonomous vehicle fleet represents a pivotal milestone for AI-driven mobility. This move validates Tesla's vision-only approach to autonomous driving, relying solely on passive optical sensors and advanced machine learning algorithms, rather than traditional LiDAR or radar systems (source: Sawyer Merritt on Twitter). Morgan Stanley notes that scaling this technology could disrupt prevailing industry assumptions, accelerate adoption of AI-powered computer vision systems, and open up significant market opportunities for software-first, camera-based autonomous solutions. This breakthrough positions Tesla as a leader in vision-centric AI autonomy, prompting competitors and investors to reconsider the future landscape of AI mobility platforms.

According to Sawyer Merritt on Twitter, Morgan Stanley's latest note emphasizes that the automotive industry is approaching a major AI-driven inflection point, with Tesla maintaining a significant and growing lead in the race for autonomous vehicle technology. The report identifies three critical factors for success in developing autonomous vehicle capabilities: access to extensive data (from fleet and mileage), advanced compute infrastructure, and additional undisclosed elements. The analysis underscores that Tesla’s vast fleet data, proprietary compute solutions, and continuous AI advancements position it ahead of competitors, offering substantial business opportunities for AI-enabled mobility platforms and software services (Source: Sawyer Merritt on Twitter, December 15, 2025).