Elon Musk just emailed all Tesla employees at service centers to take new customers on test drives with FSD. This was a shock that nobody saw coming, and this also shows just how far FSD has come.
Elon Musk Shares Shocking Email
Elon Musk just sent a company-wide email to Tesla employees - particularly those at service centers for those employees who are giving people a delivery of their new Tesla vehicle. The email says this:
Going forward, it is mandatory in North America to install and activate FSD V12.3.1 and take customers on a short test ride before handing over the car.
Almost no one actually realizes how well (supervised) FSD actually works.
I know this will slow down the delivery process, but it is nonetheless a hard requirement.
Thanks,
Elon
This email shows Elon Musk's urgency in getting FSD in the hands of Tesla owners. It's a bit of a shock, and the reason is that nobody saw this coming. I didn't see this coming, and it looks like none of the other Tesla analysts or reporters did either.
Elon also said that this should be done for cars returning from service too!
Tesla's FSD has been getting a lot of attention and enthusiasm lately. The reason is that it is now smooth and hardly requires any intervention. It is STILL a driver assist software and requires paying attention at all times and being able to take over at any moment to correct any mistakes. Tesla's are not yet autonomous.
However, they certainly seemed to have taken a giant leap recently toward autonomy.
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Pros and Cons To This Move
There are pros and cons to this move by Elon Musk and Tesla. The pros to this move are that the take rate of Tesla's FSD are likely to increase with so many people being exposed to this ground-breaking technology. A customer who sees the Tesla driving itself without intervention is going to likely be impressed.
This increase in take rate will be interesting to watch. It seems about 10% or so of people are using FSD right now, either in a monthly subscription or paying outright for it. Will this increase to 20%, 30%, or more? We will have to see how Tesla reports in future quarters for this, since quarter 1 of 2024 is just about over.
Another pro of this is that Tesla is going to get more FSD data and more people are going to be using it in different parts of the country in North America. This is going to give Tesla more data to train its neural nets and as more people submit video data to Tesla whenever there is an intervention, the system will get better even faster.
However, one con to this decision is that it is definitely going to take more work for Tesla service center employees to do their job. Is Tesla going to have to hire more help to do what Elon Musk is asking here? It's quite possible.
An X user had an interesting idea, and that was for those who already use FSD to be able to take people on FSD test drives to show how FSD works. This seems like a good idea to me and if that person gets a referral, they should get free credits or get paid for their work - something like $500 for every FSD sign-up outright, or 10% of the $199 monthly fee every month for the sign-up they helped generate.
Let's see if Tesla creates some kind of profit sharing on FSD - I think giving people a share of the monthly profit, even if it's just $5 every month if they signed that person up, is a GREAT idea.
What other pros and cons do you see to this decision by Elon Musk?
For Further Reading: Elon Musk Gives Praise To His Team At Tesla - And Especially Those Working On the Production Line Or In Serivce
Did you Know: This Tesla was modified to have a gas engine and get an oil change!
What do you think about Elon Musk's email here? Is this a smart move on his part?
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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.
Image Credit/Article Reference: Colin
Of course this makes sense…
Of course this makes sense to get more vehicles with this option on the roads, then he can offer taxi services using the vehicles