Elon Musk said on Wednesday that electric vehicle (EV) giant Tesla 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.
Tesla CEO Elon Musk and his security detail depart the company’s local office in Washington, U.S. January 27, 2023. REUTERS/Jonathan Ernstlikely 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.
The test version of what Tesla calls Full Self-Driving software will be "two steps forward, one step back between releases," Musk said, "but the trend is very clearly towards full self driving, towards full autonomy." Tesla's financial chief Zachary Kirkhorn said its automotive margin in the first quarter was hurt not only by price cuts, but also increased deferred revenue for FSD software and that "this deferral should get recognized once some of the software catches up."Guidehouse Insights analyst Sam Abuelsamid said Tesla is making some changes to the car's hardware, which disables some FSD features on newer vehicles temporarily.
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