According to Sawyer Merritt citing Morgan Stanley’s Adam Jonas, Tesla’s autonomous vehicle technology is considered sufficiently advanced to remove safety drivers at scale in major metropolitan areas, particularly in Texas, where no additional regulatory approval is required (source: Sawyer Merritt, Twitter, Oct 27, 2025). Tesla’s reliance on a passive optical-only AV system, rejecting radar and LIDAR, challenges established robotaxi industry norms, potentially accelerating AI-driven mobility solutions. With 8 million vehicles and 12% FSD penetration, Tesla could achieve $1.2 billion in annualized Full Self-Driving (FSD) revenue with high margins, indicating significant recurring business potential and positioning Tesla as a leading player in the AI-powered mobility sector (source: Sawyer Merritt, Twitter, Oct 27, 2025).