Ford Motor Co. F CEO Jim Farley voiced skepticism about Tesla Inc.'s TSLA autonomous driving strategy, underscoring the necessity of consumer trust and prudence.
What Happened: During the Aspen Ideas Festival, Farley emphasized the potential of laser sensor systems, such as those employed by Alphabet Inc.'s GOOG GOOGL Waymo, according to Fortune.
In a conversation with Walter Isaacson, Farley compared the systems of Waymo and Tesla, expressing a preference for Waymo’s approach.
"When you have a brand like Ford, when there's a new technology, you have to be really careful," he said.
Farley highlighted the critical role of LiDAR, a technology used by companies like Waymo in self-driving vehicles. Farley stated, "We really believe that LiDAR is mission critical."
He acknowledged the advancements of both companies but emphasized Ford’s belief in the importance of LiDAR, noting its capability to detect obstacles that cameras might overlook.
"We decided, as a company, that a cooler problem than full autonomy in an urban setting was high speed, eyes off. Push a button and read a book in your car," Farley said.
Tesla, which employs a camera-only strategy for autonomous driving, recently introduced a robotaxi service in Austin.
This approach has faced scrutiny within the industry, although Elon Musk argues it is cost-effective. Meanwhile, Ford plans to collaborate with self-driving software firms as technology progresses, focusing on its “BlueCruise” Level 2 system.
Why It Matters: Ford’s decision to prioritize LiDAR technology over Tesla’s camera-only approach highlights a significant divergence in strategies within the autonomous vehicle industry. Tesla’s production costs for vehicles are reportedly just “1/7” of Waymo’s, and this cost efficiency allows Tesla to deploy more vehicles on the road, potentially accelerating its path to full autonomy.
Furthermore, Tesla’s robotaxi service, which recently launched in Austin, is considered to have a major advantage over competitors like Waymo and Zoox. Gary Black of The Future Fund LLC highlighted that every Tesla robotaxi is factory-ready, giving it a significant edge in the market.
Despite the differing approaches, Tesla’s safety record is noteworthy. Social Capital CEO Chamath Palihapitiya pointed out that Tesla’s crash rates are significantly lower than the national average, making it an ideal choice for teenage drivers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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