Tesla's AI Trainers Reportedly Distrust Its Own Full Self-Driving Technology (TSLA)

The people responsible for training Tesla's (NASDAQ: TSLA) artificial intelligence systems do not trust the Full Self-Driving technology they are building, according to accounts from ten former Tesla employees cited by Reuters. The report cuts directly at the credibility of a technology that CEO Elon Musk has positioned as the central justification for Tesla's roughly $1.5 trillion valuation — approximately five times that of any other automaker, according to the same reporting.

What Former Employees Said

• Ten former Tesla employees were interviewed, all of whom expressed distrust in the Full Self-Driving system, according to the Reuters report.
• Musk has publicly stated that FSD will soon transform every Tesla on the road into a driverless vehicle, per the report.
• The $1.5 trillion valuation cited in the report is attributed directly to investor belief in the FSD promise, according to Reuters sourcing.
• Tesla has held a dedicated robotaxi event at which Musk reiterated the autonomous driving vision, per the report.

Why It Matters

Full Self-Driving is not a peripheral product for Tesla — according to Reuters, it is the primary reason investors assign Tesla a valuation far exceeding traditional automakers. If the engineers and AI trainers closest to the system harbor doubts about its readiness, that raises substantive questions about the timeline Musk has communicated publicly.

The disconnect between internal skepticism and external promotional messaging is particularly consequential given the scale of expectations baked into Tesla's market positioning. Reuters notes that the gap between what Musk promises and what employees believe the technology can currently deliver is the core tension the report surfaces.

Wall Street View

Wall Street's consensus on Tesla as of May 1, 2026 sits at 20 Buy ratings and 9 Strong Buy ratings, against 24 Hold, 7 Sell, and 1 Strong Sell — a broadly constructive but divided picture. The Hold count increased from 21 in April to 24 in May, suggesting some analysts have grown more cautious even before this report emerged. With a forward P/E of 175.5x (TTM — may not reflect latest quarter), the stock carries valuation that leaves limited room for credibility erosion around its most important growth narrative.

Investor Takeaway

The Reuters account, sourced from ten former employees, represents a direct challenge to the autonomous driving story that underpins much of Tesla's premium valuation. Tesla was last trading at $440.36 on Thursday, May 28, reflecting a gain of $6.77 on the session, but the internal credibility questions raised in this report are likely to attract sustained scrutiny from analysts and institutional investors alike. Whether Tesla responds with additional technical disclosures or a public rebuttal will be closely watched.