Musk Issues 'Hard Requirement' To Demonstrate Tesla's Driver Assistance Software To Buyers, Even If Delivery Process Slows: 'This Is Very Important'

Zinger Key Points
  • An internal memo shows how important FSD could be for Tesla.
  • The new mandatory demonstrations could slow the delivery process of Tesla vehicles.

Self-driving features from electric vehicle company Tesla Inc TSLA have been said to be a future catalyst for growth, but have also led to controversy and lawsuits.

Tesla CEO Elon Musk is taking another step towards adoption of the driver-assist features, making sure all new vehicle buyers are aware of the tools.

What Happened: Musk recently said that Tesla's full self-driving (FSD) software "should be really shining bright" by late April or May. It appears that Musk is ready to make sure everyone knows.

A memo from Musk to Tesla staff reveals a "hard requirement" that new vehicle purchases need to have a demonstration of driver-assist features for consumers who buy Tesla vehicles in the United States.

Tesla staff will install and demonstrate the features, according to a memo reported by Bloomberg.

Along with showing off the features, Musk said that Tesla employees should also take purchasers on a "short test ride" to demonstrate features in real-time.

Related Link: Tesla Q4 Earnings Highlights: Revenue Miss, EPS Miss, Model Y A Global Bestseller, Next-Gen Vehicle Update And More

Why It's Important: FSD remains a key catalyst for Tesla and some analysts see the revenue potential from software as a determining growth factor for the company. Musk has also highlighted the importance of FSD for the company.

Demonstrating the potential for software features to enhance sales of FSD and add-ons might, paradoxically, decelerate the vehicle delivery process, impacting Tesla’s ability to achieve its milestones. Customers usually purchase FSD for a one-time fee of $12,000 or a monthly subscription of $200.

"I know this will slow down the delivery process, but it is nonetheless a hard requirement," Musk said. "This is very important."

The demonstrations could help Tesla users see how well FSD works, which Musk said in the memo.

"Almost no one actually realizes how well (supervised) FSD actually works."

TSLA Price Action: Tesla shares were up 1% to $172.63 on Monday versus a 52-week trading range of $152.37 to $299.29.

Read Next: Here’s How Many Vehicles Tesla Has Delivered, Produced In Each Quarter Since 2019

Image created using artificial intelligence with Midjourney.

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Posted In: NewsTop StoriesTechautonomous vehiclesElectric Vehicle Stockselectric vehiclesElon MuskFSDFull Self-DrivingmobilityStories That MatterTesla FSD
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