Morgan Stanley is pushing back on the idea that Nvidia’s latest autonomous driving tools meaningfully threaten Tesla’s lead in self-driving technology.
Nvidia helps, but it is still a follower path
In a research note, the bank said Nvidia’s $NVDA ( ▼ 2.15% ) autonomous stack may help traditional automakers accelerate development, but it does not close the gap with Tesla $TSLA ( ▲ 1.02% ) , which it believes remains far ahead of the field.
Analyst Andrew Percoco described Nvidia’s platform as a “capital-efficient on-ramp” for automakers looking to improve autonomy without building everything in-house. That said, he argued this still puts them on a faster-follower strategy rather than in a leadership position.
Why Tesla keeps its lead
Percoco said Tesla is “years ahead of competitors” due to its massive data advantage and vertically integrated approach. Tesla collects real-world driving data at a scale rivals cannot match, giving it a structural edge that software partnerships alone cannot replicate.
That view echoes comments from Tesla CEO Elon Musk following Nvidia’s CES announcements.
“This is maybe a competitive pressure on Tesla in 5 or 6 years, but probably longer,” Musk wrote on X.
For now, Morgan Stanley’s takeaway is clear. Nvidia may lower the barrier to entry for autonomy, but Tesla still sets the pace.