Tesla is considering offering their full self-driving technology for free or at cost to other automakers, potentially dominating the market and facing competition from other companies like Nvidia
Questions to inspire discussion
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What is Tesla considering offering to other automakers?
—Tesla is considering offering their full self-driving technology for free or at cost to other automakers.
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What is the potential impact of Tesla's offer to other automakers?
—The potential impact is sparking debate among investors about Tesla's competitive advantage in self-driving technology.
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What is Tesla's plan for every car they make?
—Tesla plans to make every car self-driving and electric, and they plan to license the technology to other car companies.
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What is the potential revenue model for Tesla's Full Self-Driving (FSD)?
—The potential revenue model involves customers paying for the service, with both the OEM and Tesla making money.
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What are the potential challenges for Tesla's FSD business model?
—Potential challenges include government intervention, monopoly issues, and other companies solving the problem anyway.
Key Insights
- 🚗 Elon Musk's idea that every car should be self-driving and electric, with the potential for Tesla to be the overwhelming benefactor as robot cars eat into the auto market, is a bold and controversial vision.
- 🚗 Partnering with other automakers to gather more data could solidify Tesla's lead in the self-driving market, making it difficult for other players to compete.
- 💰 The economics of robo taxis for Tesla are so lucrative, with potential earnings of $100,000 per year per car in perpetuity.
- 🚗 The speaker's shift from not using FSD to not wanting to drive without it highlights the potential impact of Tesla's Full Self Driving technology on everyday driving.
- 📈 FSD has no current or foreseeable competition and has a ton of pricing power in the mid to long term, making it crucial to get as many people in and raise the price later.
- 🚗 "This is a function that is unavailable on any other vehicle on the road anywhere in the world."
- 🚗 Giving away FSD for a lower cost could result in widespread adoption and make it a game over for competitors.
- 💰 Tesla executives are considering a new FSD business model that would not charge the OEM, potentially disrupting the industry.
#Tesla
X Mentions: @herbertong @TeslaLarry @HabitatsDigital
Clips
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00:00 🚗 Tesla may offer their full self-driving technology for free or at cost to other automakers, sparking debate about their competitive advantage, and they plan to make every car self-driving and electric while potentially licensing the technology to other companies.
- Tesla may partner with other automakers by offering their full self-driving technology for free or at cost, sparking debate among investors about Tesla's competitive advantage in self-driving technology.
- Elon Musk discussed the future of full self-driving technology and the challenges of traveling with a Cybertruck.
- Tesla will make every car self-driving and electric, and they plan to license the technology to other car companies, potentially allowing them to integrate it for free or at cost.
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03:35 💡 Tesla's FSD business model involves customers paying for the service, with potential for $100,000 per year per car as robot taxis, but investors believe Tesla should not withhold licensing from other car companies to avoid government intervention and monopoly issues.
- Tesla's FSD business model involves customers paying for the service, with both the OEM and Tesla making money, and the company's investment in R&D and data collection solidifying its lead in the self-driving market.
- Investors believe Tesla should not withhold licensing from other car companies as it could lead to government intervention, monopoly issues, and other companies solving the problem anyway.
- Software business is not a monopoly and Tesla can earn money by licensing out its self-driving technology to other companies.
- The business model for Tesla's Full Self-Driving (FSD) is highly lucrative, with potential for $100,000 per year per car in perpetuity as robot taxis, but the speaker does not believe in building monopolies as the government will likely step in.
- The speaker discusses the lack of availability and control in the business model.
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09:35 🚗 Tesla may start licensing its full self-driving technology this year, and is considering dropping their rule-based model in favor of an end-to-end neural network solution.
- Humanity will not pay high taxes for self-driving cars, so Tesla needs to be generous in sharing the wealth, and there may be potential partnerships in the works.
- Tesla is close to solving full self-driving and may start licensing it this year.
- The speaker has been testing full self driving for years and now feels it is safer and wants to use it all the time, and believes there will be a licensing announcement this year.
- Tesla's self-driving technology is a battleground of ideas, with different approaches being debated.
- FSD is pivoting to end-to-end neural network, with Tesla being the only company using camera-based Vision only and end-to-end, while others are still using liar-based or testing Vision only.
- Tesla executives are considering dropping their rule-based model in favor of an end-to-end neural network solution.
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16:01 🚗 Tesla executives reveal challenges with FSD, including the need for data processing, neural networks, and access to high-quality data for software development.
- Competitors, including Tesla, have opportunities to improve but the problem lies in the psychological notion that more sensors and hardware are necessary for advancement.
- The challenge with Full Self-Driving (FSD) is the processing of data from multiple sensors, and the question is whether any company can successfully gather and process enough data to achieve FSD.
- Tesla's rapid rate of improvement and lack of constraints in processing power will likely lead to the transition to neural networks, with Nvidia expected to make moves in the next six months to a year.
- Tesla is facing challenges with third-party agreements for data ownership and hardware decisions, including the realization that lidar is not the right hardware, and the importance of data access.
- Data volume and quality are important, but the type and accessibility of data are often overlooked and crucial for software development.
- Tesla has nine cameras per car, while most existing fleets on the road have one to two of different quality, and accessing the right type of data, achieving sufficient volume and quality, and removing 300,000 lines of code are major hurdles for potential competitors.
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22:17 🚗 Tesla's Full Self-Driving business model relies on partnerships with companies like Ford, BYD, Volkswagen, and Hyundai, while Chinese EV makers struggle to compete without licensing technology from Tesla.
- Tesla's approach to autonomous driving sidelines existing fleets and creates obstacles for third party providers, while BYD stands out as a potential player and natural partner for Tesla.
- Tesla executives believe that partnerships with companies like Ford, Byd, Volkswagen, and Hyundai are crucial for expanding their Full Self-Driving business model.
- Tesla's partnership with China has been incredibly successful, and if other companies like Ford and BYD don't jump on board with self-driving technology, they will be left behind in the electric vehicle market.
- Chinese EV makers are trying to catch up to Tesla's FSD, but they lack the necessary technology and data, making it difficult for them to compete without licensing it from Tesla.
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27:23 🚗 Tesla's FSD free trial could increase earnings per share, prioritizing adoption over pricing and aiming for a more flexible pricing model to attract more customers.
- Tesla's free trial of FSD across all fleets could potentially increase earnings per share by 10% and 6% for existing and new vehicles, respectively.
- Tesla prioritizes adoption rate over pricing for Full Self-Driving, aiming to attract as many customers as possible before raising prices in the future.
- FSD pricing has been too high and unforgiving, with the ability to transfer it on sale being limited, and the speaker believes that the pricing is not fair or reasonable.
- Tesla executives believe that a more flexible pricing model for Full Self-Driving will lead to higher adoption rates, and they are focused on long-term goals rather than short-term earnings.
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31:39 💣 Tesla executives reveal plans to use FSD data for advertising and pitching, highlighting the cost-effectiveness and real-world application of the technology.
- Global usage of the product requires a more forgiving and liberal approach, with the goal of getting it out as much as possible.
- The current version of FSD is an incredible selling tool for new Teslas and could be used to improve demand for Teslas as an incentive to buy, as it is unavailable on any other vehicle in the world.
- Tesla executives are planning to use Full Self-Driving (FSD) data for advertising and pitching, which could justify the massive GPU spending for large scale AI applications.
- Tesla is spending a lot of money on FSD without a revenue model, while the cost of inference on FSD is negligible.
- Tesla executives discuss the economic benefits of getting FSD into the hands of millions of car owners and highlight the cost-effectiveness and real-world application of the technology.
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37:15 💥 Tesla executives consider licensing FSD to other car manufacturers, potentially dominating the market but facing competition from companies like Nvidia.
- Tesla executives discussed the new FSD business model, favoring licensing it to other car manufacturers, with a prediction of Ford, BYD, Volkswagen, and Hyundai Kia being potential adopters.
- Tesla has the opportunity to dominate the market with their FSD business model, but other companies like Nvidia could also compete if they adopt a similar approach.
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Duration 0:40:15
Publication Date: 2024-04-07T13:37:56Z
WatchUrl: https://www.youtube.com/watch?v=0w1anlBaFmg
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