Tesla Crashes Significantly Lower Than National Average: Chamath Palihapitiya Weighs In On Why It's The Ideal Choice For Teenage Drivers

Social Capital CEO Chamath Palihapitiya believes Tesla Inc. TSLA is one of the safest car choices for parents with teenage drivers.

What Happened: "My 16yo is in the process of getting his drivers license. CA requires someone under 18yo to get 50 hours of driving experience before they can take their drivers exam," the investor said, quoting a post on social media platform X on Monday that showcased Tesla's crashes per million miles data.

According to the chart, Tesla vehicles recorded just 0.15 crashes per million miles, compared to 1.16 for Alphabet Inc.’s GOOGL GOOG Waymo and 3.90 for the U.S. average.

Palihapitiya noted that while he doesn't allow his son to drive with any driver-assist features yet, he plans to make him try Tesla's Full Self-Driving (FSD) once he's licensed. "As soon as he gets his license he MUST drive our Model Y with FSD on," Palihapitiya said.

Palihapitiya made a case for the FSD technology, citing the data. "Obviously safety isn't guaranteed," the investor said. He then said that it was "foolish" to review this data and wonder why parents should opt for anything other than a Tesla for their teenager to drive.

Why It Matters: The investor's comments come in as Elon Musk's EV giant will roll out its robotaxi service in Austin on June 22. The company's FSD technology is a crucial aspect of its robotaxi ambitions.

Speaking of which, the National Highway Traffic Safety Administration, or NHTSA, recently announced exemptions from the safety regulations for autonomous vehicles, which can pave the way for Tesla to develop its Cybercab at a much quicker pace.

Still, the technology isn't flawless. A recent incident involving a Model 3 reportedly using FSD saw the car stuck on train tracks and hit by a train. The driver escaped unharmed, but the event highlights ongoing risks.

Tesla scores well on Momentum, Quality and Growth metrics, but offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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