- Elon Musk said on Wednesday that electric vehicle (EV) giant Tesla (TSLA.O) likely will launch full self-drive technology this year and generate significant profits that offset some of the margin pressure it’s facing due to aggressive price cuts.
Elon Musk, the CEO of Tesla, announced on Wednesday that the electric vehicle company is likely to launch its full self-driving technology later this year. Musk stated that the new software, known as Full Self-Driving (FSD), will undergo a gradual release with “two steps forward, one step back between releases,” but is ultimately headed towards full autonomy. Despite previous missed targets, Musk expressed confidence that Tesla will achieve the capability this year.
“I hesitate to say this but I think we’ll do it this year,”
said Tesla CEO Musk, speaking on a conference call
Tesla has faced regulatory and legal scrutiny over its self-driving technology, with critics arguing that it requires driver supervision. However, Musk emphasized that Tesla’s self-driving technology is not intended to make the car fully autonomous, but rather to assist the driver. The FSD software is sold as an option for up to $15,000.
Tesla’s financial chief, Zachary Kirkhorn, attributed the company’s lower-than-expected quarterly margin to price cuts and increased deferred revenue for FSD software. He stated that this deferral will be recognized once the software catches up. Tesla is also reportedly making changes to the car’s hardware, which temporarily disables some FSD features on newer models.
Despite these challenges, Musk expressed confidence in Tesla’s unique strategic advantage, stating that the company’s cars will be worth “a hell of a lot more in the future” if autonomy pans out. Musk also indicated that he prioritizes sales growth over profits in a weak economy.
