CEO Elon Musk says he is talking to a major automaker about licensing Tesla’s hardware and Full Self-Driving software. A “major automaker” is interested, Musk told investors on a call that branched into updates on the Cybertruck, robotaxis, AI, robots and bionic limbs.
“We are already in early discussions with a major OEM about using Tesla FSD,” Musk said during the second-quarter earnings call. “We’re not trying to keep this to ourselves. We’re more than happy to license it to others.” Tesla’s system is not the most advanced. Autopilot is a driver-assist system, similar to GM’s Super Cruise or Ford’s BlueCruise which allow hands-free driving including automated lane changes but the driver must be alert and ready to assume control at all times. Mercedes tops them with its certified Level 3 hands-free system that does not require the driver to be in command.
Musk: The Boy Who Cried FSD
When asked when there will be a non-beta version of FSD—something similar to Mercedes—Musk acknowledged his string of promises has yet to be realized and people have made fun of his optimism. “I know I am the boy who cried FSD.” Even still, Musk once again said he thinks FSD will perform better than a human driver by the end of this year. “I’ve been wrong in the past. I may be wrong this time,” he admitted.
There are no plans to drop the price of FSD as Musk says the $15,000 is not proving a deterrent and is a good deal because the value of autonomous vehicles will go up far more than the cost of the feature.
But, in a surprise move, Musk said he will allow transfer of FSD to a new car—calling it a one-time amnesty that he hopes will make people happy. Those who have bought FSD over the past seven years—and have never been able to use it—will be able to transfer the software package as part of the trade-in for a new car if they place their order before the end of September.
Robotaxis Right Around the Corner
Autonomy will drive volume to the next level with dedicated robotaxis on the way. And the way in which the self-driving vehicles will be manufactured will be equally revolutionary, Musk said. That could be because the line might be manned by the Optimus AI robots that are in active development. He lamented on the call that no one makes actuators for humanoid robots so Tesla is designing them and will produce them in bulk. The first robots with Tesla-designed actuators should be ready “November-ish,” he said, and will be tried first in Tesla plants. There could be some in factories next year.
FSD will soon be vastly—10 times—safer than human drivers, Musk said. He wants AI and Dojo (the $1 billion supercomputer Tesla is building) to provide a system that is 100 times better than a human.
Tesla Cybertruck Update
Musk joined the call from the Giga Texas plant in Austin that has produced the first Cybertruck on its production line, which Musk boasts is unique for being the only truck with four doors, a 6-foot bed, and fits in a 20-foot garage. Deliveries will start by year-end, but volume production will not happen until next year. He said he hopes production ramp-up is smooth, but with 10,000 unique parts and processes, the supply chain will determine that. The CEO said demand for the truck is “so off the hook you cannot see the hook.”
Six Million Dollar Man
In his wide-ranging call, Musk talked about combining a Neuralink brain implant with robotic limbs for amputees. “We believe we can give a cyborg body that is incredibly capable, six-million-dollar man in real life, but it won’t cost six million dollars. Sixteen-thousand-dollar man.”
Tesla Q2 Earnings
Tesla did report net income of $2.7 billion on $24.9 billion in revenue which is a 47 percent jump from a year ago. The automaker delivered almost 470,000 vehicles which is an 83 percent jump. Executives touted record sales and said the Model Y was the top-selling vehicle worldwide. But gross margins and operating profits fell with price slashing. And production will be less in the third quarter with shutdowns for plant upgrades, Musk said.
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