Tesla detailed its plans for driverless cars at its Autonomy Investor Day, which started 43 minutes late…or if you’re Elon Musk, right on time.
Tesla, but make it driverless
The big news: the Full Self-Driving computer, hardware that took three years to develop, fits behind a Tesla’s glove box, and holds two independent chips that exclusively run Tesla-encrypted software.
- Because if you want something done right, get Samsung to build it for you. Tesla (-3.85%) had previously tapped Nvidia’s computing skills but took issue with its long client list and “generalized solution.”
Musk called this new computer solution the “best chip in the world…by a huge margin” and said today’s Teslas have everything they need for self-driving—aside from the software, which Musk says will undergo a plug-and-play update to make new models fully driverless down the road.
While yesterday was all about looking ahead, Tesla will be forced by its close buddies at the SEC to look back when it reports quarterly results tomorrow afternoon—and they’re all but guaranteed to show a loss.
As the WSJ points out, this week goes to show you…
There are two types of Tesla investors
The believers consider Tesla more tech than car company. Yesterday they got another taste of the Tesla Network, Musk’s vision of a shared fleet of super-efficient driverless cars to roll out as soon as next year.
- ARK Investment says a successful Tesla Network could send the company’s stock to $4,000 per share in 2023. That’s appreciation of about 1,364%.
Then there are skeptics, who highlight severe operational hurdles that have plagued autonomous carmakers from Ford to Waymo. They say Autonomy Day is a tried-and-true play for Tesla, designed to ratchet up excitement ahead of bad news. Mainstay’s David Kudla to the Journal: “I’ve seen this movie before.”