Sunday, April 14, 2024

Tesla Opens Supervised FSD to Reviews on One Month-Free Trial, Musk Says Its Like Magic


Analysts perceive the significant recurring revenue generated by the widespread adoption of Tesla’s Full Self-Driving (FSD) software as a positive factor for the company’s financial performance. They anticipate that this trend will not only bolster sales but also contribute to both the top and bottom lines, with CANACCORD analysts suggesting it could drive future penetration gains.

Recently, Tesla’s CEO Elon Musk and company executives provided insights into the software as it transitions from beta-testing to a supervised version, offering a month-long free trial in the United States. Positive feedback from trial users, shared by Tesla influencer Sawyer Merritt, garnered attention, with Musk himself endorsing the software’s capabilities as “like magic.” Additionally, Airbnb co-founder Joe Gebbia, who also sits on Tesla’s board, expressed admiration for the latest version of FSD, characterizing it as a mind-blowing experience.

This shift towards revenue from ancillary sources and businesses is crucial for Tesla amidst challenges in volume growth. Analysts believe that the high-margin recurring revenue from increased FSD adoption will positively impact Tesla’s financial performance. Canaccord Genuity analyst George Gianarikas emphasized the significance of Tesla’s approach in offering vehicles with software upgradability, seeing it as a potential catalyst for future market penetration.

However, some skeptics question the technology’s autonomy level relative to its cost, expressing dissatisfaction with its performance. Regulatory bodies also remain cautious about embracing fully autonomous driving technology.

Despite the optimism surrounding FSD, Tesla‘s stock ended Thursday’s trading session down, according to available sources.

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