Amid Tesla’s turbulent upheaval and adversity, the company’s chief executive, Elon Musk, is trying to bring renewed enthusiasm among its investors. According to Electrek, he reportedly said that people who believe in the value of Tesla’s Full Self-Driving (FSD) technology are smart. The Tesla CEO has been making comments lately that most people don’t understand, know or realize what the car company is doing and how amazing it is on Twitter. So did his latest comments on the fourth-quarter 2022 earnings call with investors.
Musk has previously said that when the company finally delivers on its self-driving promise, the electric automaker will unlock tens of thousands of dollars in value per Tesla vehicle. FSD will be able to turn Tesla cars into robot taxis. However, the electric car company also missed the timetable in this case, in the way it overpromised and underdelivered. Therefore, Musk has not mentioned FSD for a long time. For now, however, he’s mostly focused on commenting on improvements to the Tesla FSD Beta, without providing a delivery timeline.
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Talking about the added value of FSD, Musk said that FSD will have huge upside potential and can increase the value of Tesla vehicles. “I think one of the things that some of these smart retail investors understand but I think a lot of others probably don’t understand is that every time we sell a car, it has the ability, you just upload the software, and you can do it all. Self-driving and fully self-driving is obviously getting better very quickly. So that’s actually a huge upside potential because all of these cars, with a few exceptions, only a small percentage of cars that don’t have Hardware 3, which means there are millions of cars that are fully A self-driving car can basically be sold for a 100% gross margin. Its value grows as its autonomous capabilities grow. Then, when it becomes fully autonomous, the value of the fleet increases. This may be the largest in history asset value growth. Yes,” he told the financial conference.
First published date: January 30, 2023 at 10:57 am IST