Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Bangkok Post
Bangkok Post
Technology

Tesla likely to launch full self-drive technology this year

A Tesla supercharger station at the CentralWorld shopping complex in Bangkok. (Photo: Somchai Poomlard)

SAN FRANCISCO: 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.

"I hesitate to say this, but I think we'll do it this year," said Tesla CEO Musk, speaking on a conference. Musk has missed his previous targets to achieve self-driving capability dating back years.

The test version of what Tesla calls Full Self-Driving (FSD) 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."

The technology as it stands now has drawn legal and regulatory scrutiny following crashes. Tesla has said the technology does not make the car autonomous and requires driver supervision.

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 recognised once some of the software catches up."

Kirkhorn did not elaborate.

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.

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

Late last year, Tesla removed ultrasonic sensors from Model 3 and Model Y cars and said some features such as "smart summon" and "autopark" 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."

Tesla reported a lower-than-expected quarterly margin on Wednesday, but Musk said he would prioritise sales growth over profits in a weak economy.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.