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Tesla's FSD Software Is Like A Series of Seven Call Options: As Each One Happens, Significant Value Is Unlocked

Tesla's FSD is like a series of seven call options - as each one happens over time, significant value will be unlocked.
Tesla's FSD Software Is Like A Series of Seven Call Options: As Each One Happens, Significant Value Is Unlocked

Tesla's FSD - Like a Series of Seven Call Options

In the world of technology, progression is the heartbeat of innovation and advancement.

Tesla's Full Self-Driving (FSD) system stands as a testament to this relentless pursuit of progress.

Despite the journey being more arduous and time-consuming than initially anticipated, Tesla has continued to evolve its FSD technology, inching closer to revolutionizing the automotive industry.

In fact, Elon Musk just recently Tweeted about the rapid pace of progress that is going to come for FSD, now that it is "nothing but nets."

Key Highlights

  • Tesla FSD has made significant strides, albeit slower than expected due to unforeseen challenges.
  • The essence of technological progression lies in perseverance and continuous improvement.
  • FSD represents a series of potential opportunities, akin to call options nearing their strike prices.
  • These opportunities, a total of seven, range from enhancing driving pleasure to redefining transportation services.

Understanding the Value of FSD

The Full Self-Driving suite is not just a technological marvel; it embodies a spectrum of potentialities that edge closer to realization with each developmental milestone.

Each of these potentialities can be likened to call options approaching their "in the money" status, signifying moments when the technology's promise becomes a tangible reality.

You May Also Like: Elon Musk Just Said, "Three Significant Improvements to FSD Will Roll Out Roughly Every Two Weeks. Should Be Really Shining Bright By Late April Or Early May"

The Strike Prices of FSD

Each of these are a progression of FSD, the first of which is already being unlocked with FSD version 12.3. As additional items are unlocked, the value increases. I also believe #2 on this list is happening now - lives are being saved.

  • Enhancing the Driving Experience: The initial milestone focuses on making driving more enjoyable and less exhausting, an appeal to those who cherish the journey as much as the destination.
  • Elevating Safety and Saving Lives: At its core, FSD aims to significantly reduce the risk of accidents, thereby saving lives and making roads safer for everyone.
  • Partial Attention Driving: Progressing further, FSD seeks to enable drivers to delegate more tasks to their vehicles, reducing the need for constant vigilance.
  • Full Attention Liberation: The ultimate vision of FSD is a car that requires no human attention, transforming the very essence of what it means to "drive."
  • Broadening the Horizon with Licensing: By licensing FSD technology to other automakers, Tesla envisions extending these benefits beyond its customer base, setting new industry standards.
  • Pioneering the Robotaxi Revolution: The development of an autonomous taxi service represents a paradigm shift, potentially obviating the need for personal vehicle ownership and significantly lowering transportation costs.
  • Laying the Groundwork for Future Services: Beyond immediate applications, FSD paves the way for a new era of autonomous transportation platforms, fostering innovative services yet to be imagined.

The Market Opportunity

Each developmental milestone of FSD not only enhances the system's capabilities, but also exponentially increases the market opportunity.

As Tesla FSD navigates through these milestones, it unlocks vast potential markets, significantly amplifying the value of its technological advancements.

Tesla's Full Self-Driving journey is a compelling narrative of technological perseverance and visionary ambition. With each step forward, Tesla not only advances its FSD technology but also reimagines the future of transportation.

The road ahead is filled with challenges, yet the potential rewards promise to redefine our relationship with automobiles and mobility at large.

Tesla's FSD opportunity is not just a one time thing that will happen overnight - it will be a series of incremental value adds over time.

For Further Reading: Wandering Pedestrian In the Middle of the Road, Successfully Navigated Around By Tesla FSD Version 12.3 - Showing Utmost Concern For The Safety Of Others

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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.

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Article Reference: Cern Basher

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