Michael Wayland, an auto reporter for CNBC, tested Tesla, Inc. (NASDAQ:TSLA)’s FSD (Supervised) and Rivian Automotive, Inc. (NASDAQ:RIVN)’s new Autonomy+ hands-free driving systems over hundreds of miles. It was revealed that Rivian has surpassed legacy rivals like GM’s Super Cruise but still trails Tesla specifically on non-highway and point-to-point driving.
Why This Matters
Rivian Automotive, Inc. (NASDAQ:RIVN) is racing to catch Tesla’s self-driving lead while adding safety guardrails Tesla doesn’t use. Is Rivian’s more cautious, sensor-heavy approach the smarter long-term bet, or does Tesla’s head start on real-world driving give it an edge that’s hard to close?
Tesla Leverages FSD Lead amid Real-World Mastery
Tesla, Inc. (NASDAQ:TSLA)’s FSD handled every traffic signal, interchange, and exit ramp CNBC’s Michael Wayland encountered over nearly 200 miles of rural and city driving, plus roundabouts and complex construction zones, largely without intervention. Tesla’s own in-car Grok AI told its system “is widely rated as the top advanced driver assistance system in 2026” by sources like Motor Trend. Tesla already monetizes the capability at $99 a month, well ahead of where rivals are today.
Still, Tesla, Inc. (NASDAQ:TSLA)’s Full Self-Driving remains under regulatory scrutiny, with the National Highway Traffic Safety Administration escalating a probe this year after several crashes. It included one fatal incident in which the system reportedly failed to warn drivers about reduced-visibility conditions. Tesla’s camera-only, “vision-based” setup has drawn criticism for lacking the redundancy that radar and lidar provide.
Rivian’s Low-Cost Autonomy Platform Expands Software Upside. Still Lacks Tesla’s Point-to-Point Capabilities
Rivian Automotive, Inc. (NASDAQ:RIVN)’s Autonomy+ has already surpassed legacy competitors like GM’s Super Cruise, and Piper Sandler analyst Alexander Potter upgraded the stock last month, saying he favors “self-reliant” automakers “building next-gen machines using in-house expertise.” Rivian’s system costs less than Tesla, Inc. (NASDAQ:TSLA)’s, at $49.99 a month or a $2,500 lifetime purchase. The company plans to add lidar on its upcoming R2, which autonomy chief James Philbin said could help Rivian “even exceed the Tesla system.”
Rivian Automotive, Inc. (NASDAQ:RIVN)’s system still can’t act on traffic lights or stop signs, only alerting drivers rather than controlling the car. It can’t change lanes on its own yet. Point-to-point driving, where Tesla, Inc. (NASDAQ:TSLA) already operates, is something Rivian expects to deliver only “later this year,” leaving Tesla with a real, demonstrated lead for now.
Insider Monkey’s Hedge Fund Data
Tesla, Inc. (NASDAQ:TSLA) was held by 123 hedge funds as of Q1 2026, down from 137. Rivian Automotive, Inc. (NASDAQ:RIVN) was held by 45, unchanged. Ford, also racing to build competing systems, was held by 50 hedge funds, and General Motors by 77.
Conclusion
Rivian Automotive, Inc. (NASDAQ:RIVN) has definitely improved, but Tesla is still better at the hardest part of self-driving: city streets.
Overall, hedge funds favor Tesla, Inc. (NASDAQ:TSLA) over Rivian.
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Disclosure: None. This article is originally published at Insider Monkey.
