Tesla CEO Elon Musk has publicly admitted that the company’s Full Self-Driving (FSD) technology is not yet ready for public use, despite customers having paid for the upgrade. This revelation came during a recent conference call where Musk discussed the company’s financial results and future plans for self-driving capabilities.
Key Takeaways
- Musk confirmed that the FSD technology is not ready for release.
- Customers have paid up to $12,000 for the FSD package.
- Tesla plans to upgrade vehicles to the newer Hardware 4 to achieve true self-driving capabilities.
- The company faces backlash from customers and potential financial implications.
- Tesla’s first-quarter deliveries fell short of expectations, marking a significant decline.
Background on Full Self-Driving Technology
Since 2016, Tesla has marketed its vehicles as equipped with the necessary hardware for FSD features. This marketing strategy significantly boosted sales of the FSD package, which can cost buyers as much as $12,000. However, Musk’s recent admission has raised concerns among customers who feel misled about the capabilities of their vehicles.
Hardware Upgrades and Customer Backlash
During the conference call, Musk stated that to achieve true self-driving capabilities, Tesla would need to upgrade the existing Hardware 3 computer in many vehicles. This announcement has led to backlash from customers who have already invested in the FSD package, prompting Tesla to cover the costs of upgrading affected vehicles to the newer Hardware 4. Analysts estimate that this move could cost the company hundreds of millions of dollars.
Legal Challenges and Market Pressures
Tesla has faced lawsuits in the past for false advertising, particularly during transitions between hardware versions. The company previously offered free upgrades to some customers affected by these changes. As competition in the electric vehicle market intensifies, Tesla is also dealing with significant pressures, including a decline in sales and stock prices.
Financial Performance and Future Outlook
In the first quarter of 2025, Tesla delivered 336,681 vehicles, which is 50,000 fewer than the previous year, resulting in a 13% sales decline. This marks the largest delivery decline in the company’s history, coinciding with lower sales in Europe and increased competition from Chinese manufacturers.
Musk acknowledged the challenges, stating, "We are not going to look at these numbers with rose-colored glasses… they were a disaster on every metric." Despite the setbacks, he remains optimistic about the long-term prospects for Tesla, suggesting that the current stock price may present a buying opportunity for investors.
Conclusion
Elon Musk’s admission regarding the readiness of Tesla’s Full Self-Driving technology has sparked significant discussion among customers and investors alike. As the company navigates these challenges, the future of its self-driving capabilities remains uncertain, with many eagerly awaiting further developments in this critical area of innovation.
Sources
- [Tesla CEO Elon Musk Admits Full Self-Driving Technology Isn’t Ready Even After Customers Paid For The Upgrade
- AfroTech](https://afrotech.com/elon-musk-admits-tesla-full-self-driving-not-ready), AfroTech.
