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Elon Musk warns of price increase on Tesla self-driving when sitting at half a billion in unknown revenue



Elon Musk warns that Tesla is in the process of raising the price of its & # 39; Full Self-Driving & # 39; package as the company now sits at around half a billion in unknown revenue from the unpublished function.

There are many things about how Tesla approaches self-driving technology that makes it different from the rest of the automotive industry.

The automaker refuses to use lidar sensors and instead plans to rely mainly on computer technology when using cameras.

It also began installing needed hardware in all vehicles years ago when it believed that self-driving had largely become a software problem.

But most notably, Tesla began pre-selling a "Full Self-Driving" package in its vehicles years before it planned to make the technology available through the software.

It is a slightly daring move that has been criticized for various reasons.

Some say that it's confusing customers to think that Tesla cars are currently capable of self-driving, which is not the case.

Others have also criticized Tesla for frequently changing the price of the package up and down, even though they have not provided the features promised in the package.

Now Tesla has reverted to its original promise to gradually increase the price of the package as they release several features under it.

Musk said Tesla would raise the price after the release of the V1

0 software, and now the CEO confirmed that the price will increase by $ 1,000 by midnight on November 1:

With the $ 1000 increase, the package & # 39; Full Self-Driving & # 39; comes to cost $ 7,000.

These price hike notifications have been very successful in convincing Tesla owners to order the package.

Tesla cannot realize the revenue from the package because they have not provided full functions and CFO Zachary Kirkhorn said that Tesla currently has "$ 500 million to $ 600 million" in recognized revenue from the package.

With Smart Summon, Tesla began to release some features under & # 39; FSD & # 39; but Musk said it will not be "feature-complete" by the end of the year.

Electrek & # 39 ; s Take

It's hard to estimate how many went for it since the price changed so much. If I remember correctly, it was sold between $ 3,000 to $ 6,000.

I imagine the figure is between 100,000 and 130,000 Tesla owners.

Now I know that many people do not believe that Tesla can deliver a fully functional self-as soon as possible, but I think Tesla could generate revenue faster than people can believe. [19659003] That's why Elon called it "feature-complete."

As he explained under the Revenue, it doesn't mean that owners will be able to use it unattended, but if they still deliver it and people use it on the same way they use Autopilot today, Tesla could probably technically record revenue e.

What do you think? Let us know in the comments section below.

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