Tesla might Launch a self-drive technology

Tesla, an electric vehicle giant is likely to launch self-driven technology this year according to Elon Musk.

Speaking on a conference call musk said, “I hesitate to say this but I think we’ll do it this year.” This comes after the company was facing margin pressure due to aggressive price cuts. Tesla hopes that self-driving technology will generate significant profits.

Musk went on to share, the test version of what Tesla calls Full Self-Driving (FSD) software will be “two steps forward, one step back between releases”, but the trend is very clearly towards full self-driving, towards full autonomy.”

Tesla said the technology requires the driver supervision. The technology has drawn legal and regulatory scrutiny following crashes.

According to Zachary Kirkhorn, Tesla’s financial chief, the first quarter automotive margin was burnt not only by price cuts but with increased deferred revenue for FSD software and that “this deferral should get recognised once some of the software catches up”.

Analyst Sam Abuelsamid of Guidehouse Insights said Tesla is making some changes to the car’s hardware, which disables some FSD features on newer vehicles temporarily.

Tesla sells FSD software as an option for as much as $15 000.

Tesla removed sensors from Model 3 and Model Y cars late last year. Tesla said “smart summon” and “auto park” features would be temporarily unavailable.

“We do have this unique strategic advantage,” Musk said. “We are making a car that, if autonomy pans out, that asset will be worth a hell of a lot more in the future than it is now.”