Elon Drops MASSIVE Robotaxi Update

Robotaxi Service

🚗 Q: When will Tesla's robotaxi service become open access?
A: Tesla's robotaxi service will be open access next month, allowing more vehicles to join the network.

🏙️ Q: How advanced is the Austin robotaxi bill compared to the public version?
A: The Austin robotaxi bill is 6 months more advanced than what's available to the general public, substantially reducing the need for driver attention.

💰 Q: How does Tesla's robotaxi pricing compare to competitors?
A: Tesla's robotaxi service is cheaper than Uber, Whimo, and Lyft, with a $3.84 ride for a 1.36 mile route.

Software Updates

🔄 Q: What improvements will the FSE 14 software update bring?
A: The FSE 14 update in 6 weeks will have a 10x higher parameter count and many other improvements, reducing nagging of drivers.

🛣️ Q: How has the FSE roadtrip log performed?
A: The FSE roadtrip log by James Dalma has been driving all over the US on FSE forever, with no interventions.

Business Strategy

📊 Q: What is Tesla's approach to robotaxi pricing?
A: Tesla's pricing aims to achieve break-even and peak volume at scale, despite negative launch economics for a while.

📈 Q: How do Tesla's ride-hail economics compare to competitors?
A: Tesla's system design and total unit economics will persist as a significant gap between Tesla and competitors.

Regulatory Developments

📋 Q: What new regulations apply to Tesla's robotaxi service in Texas?
A: Texas has new state laws adding additional permitting, oversight, and requirements for operators with autonomous vehicles.

Vehicle Production

🏭 Q: What new Tesla model has entered mass production in China?
A: The Model Y L has entered mass production in China, with showcases in stores.

💻 Q: What improvements are coming to Model S and X displays?
A: The software update for Model S and X with AMD will have a game engine level that will eventually replace the current cartoon-like display.

Cost Reduction

💰 Q: How is Tesla reducing costs for lower-priced vehicles?
A: Tesla is implementing new motors, battery packs, and inverters, which could be a several thousand dollar cost reduction.

AI Chip Development

🧠 Q: What is Tesla's focus in AI chip development?
A: Elon Musk is focusing on AI6 chips for both inference and training.

⏳ Q: When will Tesla's AI6 chips be implemented?
A: AI6 chips will be running for 2-3 years starting in 2027-2028.

🔧 Q: How does Tesla's vertical integration benefit AI development?
A: Tesla's vertical integration of silicon engineering, vehicle engineering, and AI development provides a unique advantage in developing inference solutions for physical real-world AI.

Market Insights

📊 Q: What did Nvidia's CTO say about the inference market?
A: Jensen Hong stated that inference is an installed base problem, with Nvidia's accelerated computing platform being everywhere.

Safety and Implementation

🛡️ Q: What is Tesla's approach to safety in robotaxi development?
A: Tesla uses a data-driven approach with safety drivers in place until the probability of serious incidents is significantly lower than human driving.

🚦 Q: When will Tesla remove safety drivers from robotaxis?
A: Tesla will only remove safety drivers when the error rate is low enough compared to human driving.

Autonomous Driving Advancements

1. 🚗 Tesla's FSE 14 release, coming in 6 weeks, will feature a 10x higher parameter count and reduced user nagging after confirming real-world safety.
2. 🤖 AI6 breakthroughs and additional Tesla AI advancements will substantially reduce driver attention requirements in the Austin robo taxi, which is 6 months ahead of public versions.
3. 🌟 User James Douma reported a perfect FSD roadtrip log across the US with zero interventions, showcasing the system's reliability.

Robo Taxi Service

1. 🚕 Tesla has secured a ride share permit for its robo taxi service under new regulations, likely limiting liability through a new LLC company.
2. 🔓 Elon Musk announced that Tesla's robo taxi will be open access next month, significantly increasing vehicle availability for the service.
3. 💰  Tesla's launch economics for the robo taxi network are expected to be initially negative, with pricing set for long-term profitability at scale.

Vehicle Economics and Strategy

1. 💲 Tesla is developing a reduced cost vehicle to address the $7,500 tax credit expiration, potentially including a compact Model Y version.
2. 📉 The company's interest rate buying down has been costing $5,000-$7,000 per vehicle, but expected rate decreases will alleviate this expense.
3. 🏷️ FSD 14 on lower-cost vehicles will provide a value proposition for insurance and FSD, potentially reducing prices or allowing bundling while maintaining margins.

AI and Chip Development

1. 🧠 Tesla is merging inference and training capabilities in the AI6 chip, set to be their new market focus according to Jensen Wong.
2. 🔄  The company's inference solution roadmap spans 5+ years, with AI4 through 2026, AI5 starting 2026, and AI6 in 2027-2028.
3. 🏭 Tesla's vertically integrated silicon engineering, vehicle engineering, and AI assets provide a unique advantage over competitors like Nvidia.

Market Positioning

1. 🥇  Tesla's inference solution leads the industry, with their cars and robots featuring inference strips, giving them an edge in self-driving and robotics.
2. 🚘 The company's lead in self-driving cars with their inference solution and Optimus is underreported in the industry.
3. 🌐 Tesla's silicon engineering, vehicle engineering, and AI assets are vertically integrated, creating a sustainable competitive advantage.

Future Developments

1. 🔮 The convergence of Dojo training and inference for sole purpose of training in AI6 will further reduce the need for driver attention in complex situations.
2. 📊 Tesla's ride hail economics are influenced by market conditions like Super Bowl events, but current poorly designed systems and negative launch economics create a gap with competitors.
3. 🛠️  The company is working on cost reduction strategies for the base Model Y, including parts, consumables, and weight optimization to address potential demand concerns.

• 00:00 🚗 Elon Musk announces Tesla's Robotaxi service updates: FSD 14 release in 6 weeks, open access next month, and plans to merge software development for a more advanced model.
  • Elon Musk announces several major updates on Tesla's robo taxi service, including FSE 14 release in six weeks, open access for robo taxi next month, secured ride share permit, and increased delivery wait times for new Teslas.
  • Elon Musk announced that a new Full Self-Driving (FSD) update, FSD 14, will be released in six weeks with a 10x higher parameter count, improved performance, and fewer nags, and also confirmed that the Robotaxi service will soon be open to all users.
  • Tesla plans to merge their robotaxi software development branches, combining the Austin and Bay Area versions, into a single, more advanced model with a higher parameter count by the end of the year.
  • Elon Musk announces a major update to Tesla's autonomous driving, enabling smoother, more natural, and humanlike responses by increasing the parameter count, blending computer reliability with human-like driving experience.
  • Tesla plans to launch Robotaxi open access in Austin with around 100 cars, likely ramping up the fleet gradually over time, using data to inform the expansion.
  • Tesla is well-positioned to scale a robotaxi network with its existing assets, including factories, charging network, and service centers, and is making rapid progress with updates to its app and insurance offerings.
• 07:49 🤖 Elon Musk announces a major Robotaxi software update to reduce driver attention needs, with Austin and Bay Area testing data to inform expansion.
  • Elon Musk announces a major software update next month that will substantially reduce driver attention needs, with a more advanced build already used in Austin robotaxis.
  • The safety model needs to be smart enough to avoid high-risk situations, such as complex intersections and heavy weather, either autonomously or with remote driver oversight.
  • Tesla determines the number of vehicles to deploy based on software error rates and prioritizes safety-critical errors to gradually reduce interventions.
  • Robotaxi will accumulate miles and data in Bay Area and Austin, with a data-driven solution that is not permanent, expected to expand once results are favorable.
  • Tesla's approach to launching a safety-critical product, such as Robotaxi, involves accumulating positive sentiment, being cautious with safety drivers, and only removing them when the probability of serious incidents is significantly lower than human driving.
• 12:27 🚗 Elon Musk announces Robotaxi software is progressing well, with Tesla's data-driven approach and competitive pricing strategy set to disrupt the market with a significantly cheaper alternative to Uber and Lyft.
  • Tesla's data-driven approach and Elon Musk's announcement indicate that the Robotaxi software is progressing well and likely to move forward with improvements.
  • Tesla's Robo Taxi is significantly cheaper than Uber and Lyft, with a $3.84 fare for a 1.36 mile route compared to 3-10 times more for competitors.
  • Tesla's pricing strategy, including potential initial losses, is set with a reason, and the key to success lies in scaling profitably, time to break even, and time to volume.
  • Tesla sets Robotaxi pricing to achieve profitability at scale, considering lifetime economics and market drivers like demand fluctuations.
  • Tesla's system design gives it a significant and persistent gap in performance and economics compared to competitors in the robotaxi market.
  • There are a few more things to cover.
• 18:27 🚗 Elon announces Tesla's robotaxi service is moving forward with securing licenses and regulatory approvals, while also updating on production, demand, and future vehicle plans.
  • Tesla secured a ride-share license in Texas and established a separate LLC, Tesla Roboaxi LLC, as a transportation network, to operate its robo-taxi service under new state regulations.
  • Let Tesla get permitted and pass regulatory requirements for their robotaxi service without pressure, allowing them to ensure safety and obtain necessary approvals.
  • Elon advises letting robotaxis scale up naturally, prioritizing not harming anyone and providing a great service at a low cost, trusting the team to make data-driven decisions.
  • Tesla warns that delivery wait times are now 4-6 weeks due to high demand, and buyers must receive their vehicle by September 30th to qualify for a $7,500 tax credit.
  • Model Y Long Range has entered mass production in China, and a software update for Model S and X hints at a future game engine-level graphics upgrade.
  • Tesla is working on a reduced-cost vehicle, likely including a compact Model Y and/or a cost-reduced base Model Y, possibly with less visible changes to consumers.
• 24:33 🤖 Elon Musk shares updates on Tesla's cost reduction, FSD, and AI chips, and addresses the end of the $7,500 credit, emphasizing the company's preparedness for changes.
  • Tesla is engineering new components, such as electric motors and battery packs, at a lower cost without compromising performance, potentially leading to a several thousand dollar cost reduction per vehicle.
  • Tesla's upcoming lower-cost vehicles and anticipated interest rate cuts will offset the loss of the $7,500 credit, making their vehicles more affordable.
  • Tesla has multiple strategies, including FSD and insurance, to mitigate demand loss when the $7,500 credit ends, and may not be significantly impacted by its removal.
  • Elon Musk explains that Tesla is winding down its Dojo efforts to focus on using Nvidia, AMD, and Samsung chips, which may not be a significant blow to the company as its bullcase is rooted in Full Self-Driving (FSD).
  • Elon Musk shut down Dojo and shifted focus to AI6, a more advanced chip that will handle both training and inference, after realizing all paths converged to this technology.
  • Elon Musk's comments on free speech platform X should not be restricted, allowing people to voice their opinions.
• 31:51 🤖 Elon Musk is strategically planning Tesla's AI infrastructure, potentially simplifying and cutting costs on Dojo chip to focus on inference chips for robotaxi and other AI applications.
  • When making decisions, it's crucial to deal with sunk costs and be able to fail quickly, realizing when an investment isn't working.
  • Elon Musk is strategically planning Tesla's AI compute infrastructure, considering factors like Nvidia hardware, network readiness, and cost structure to potentially converge Dojo with AI6.
  • Companies making complex hardware often cancel projects, and good companies like Tesla make quick decisions to cut off costs and take risks to push boundaries.
  • Elon Musk's focus on inference chips, such as AI5 and AI6, for both training and real-world performance may make the Dojo chip redundant, with benefits in reduced complexity and cost.
  • Nvidia's GPUs currently power 100% of the world's AI inference, with most user engagement with platforms occurring during inference, not training.
  • Inference in AI is a challenging problem, particularly in achieving high response times and scaling to a large installed base of users.
• 39:59 🤖 Tesla is leading in self-driving cars and robotics with its custom silicon and vertically integrated engineering, poised for massive growth in AI inference.
  • Nvidia's accelerated computing platform is ubiquitous, allowing AI applications to run everywhere and have a greater impact.
  • Tesla's inference market, driven by its vast installed base of cars and robots, is poised to grow by a billion times, dwarfing the training market.
  • Multiple things can be true about Tesla's Dojo investment, including that it had sunk costs, a small percentage of training expenditure, and didn't necessarily "flop".
  • Tesla has set up its inference solution, led by Elon and the silicon team, to lead in self-driving cars and robotics for the next five plus years with a planned progression from AI4 to AI6.
  • Tesla is uniquely positioned for real-world AI inference, particularly in self-driving cars, due to its vertically integrated engineering and custom silicon, giving it an advantage over competitors who rely on Nvidia.
  • Tesla's approach to autonomy differs from competitors like Nvidia, who will be just one of many vendors providing solutions, whereas Tesla has been working on its own solution for 5 years.
• 45:28 🤖 Elon Musk shifts AI focus from Dojo to A5 and A6 for future convergence of inference and training.
  • Elon Musk is making a significant bet on the future convergence of inference and training in AI, focusing on A5 and A6 over Dojo.
  • Elon Musk expresses gratitude to community members, including Phil Belle and Jeff, and promotes their social media accounts and a Tesla investor resource website, herbertong.com.

WatchUrl: https://www.youtube.com/watch?v=MyPDYjHOOWQ