I Speculated That Stanley Druckenmiller's Tesla Buy Was About FSD. Billionaire Investor Ron Baron Just Confirmed My Thesis.

Prominent investors including Ron Baron and Stanley Druckenmiller are increasingly focusing on Tesla's Full Self-Driving (FSD) technology rather than its longer-term humanoid robotics or robotaxi initiatives as the primary catalyst for the stock. Baron recently stated on CNBC that investors should buy Tesla shares today, pointing to the rapid adoption of FSD software subscriptions over unproven projects like Optimus. This mirrors broader institutional interest shifting toward immediately monetizable, high-margin software services. Tesla's underlying metrics demonstrate tangible traction in this software-first pivot. In the second quarter, Tesla recorded 1.48 million active FSD subscriptions, representing a 56% surge year over year. Furthermore, more than 55% of new deliveries across North America now come with FSD activated, driving a 50% year-over-year expansion in Tesla's services revenue to $4.6 billion. While Tesla trades at premium valuation multiples relative to traditional automakers like Ford and General Motors, bulls argue that expanding recurring software subscriptions changes its fundamental profile into a platform business. If adoption sustains its compounding growth, recurring FSD revenues could provide durable cash flows independent of short-term vehicle delivery cycles.