Tesla Announces Ability to Transfer FSD; Must Take Delivery in Q3 [Full List of Requirements]
During an important financial update in the second quarter, Tesla announced impressive earnings of $24.9 billion and a net profit of $2.7 billion, exceeding expectations from financial experts. However, what really caught people off guard was Tesla's decision to provide a unique chance for customers to transfer their Full Self-Driving (FSD) package within the upcoming three months.
This subject has been a persistent issue for Tesla and Elon Musk over the years, and rightfully received attention. The cost of Full Self-Driving (FSD) has risen dramatically. As a result, those who were fortunate enough to acquire this technology at a low price of $5,000 in the early stages would now have to pay three times that amount if they wished to upgrade their Tesla. In May, the company reached out on Twitter requesting suggestions for enhancements, and the ability to transfer FSD was a popular demand.
During the recent earnings call, yet again the issue of FSD transferability was brought up. Musk disclosed that, in order to meet the demands of customers, Tesla would allow a one-time transfer of FSD for the entirety of the third quarter. This chance would enable current Tesla owners to switch to a new Tesla model without having to buy the expensive FSD package again, which has a price tag of $15,000 in the United States.
Tesla Hints At FSD Partnership
During the same financial discussion, Musk hinted at another innovative venture coming soon. He shared initial discussions about the possibility of granting another prominent car manufacturer a license to use Tesla's FSD technology, while refraining from providing any detailed information.
This potential partnership highlights how Tesla stands out in the self-driving car industry. Musk emphasized the important role of Tesla's vast amount of road data, which they collected from their Autopilot and Dojo projects, in their achievements. This exceptional collection of data, which no other competitor has, supports Tesla's quick advancements in AI technology and their prominent position in the field.
Tesla's Earnings Call: Tune In
You have the opportunity to tune in to a recording of Tesla's earnings call right here.
Expectations For FSD Transfers
The prediction of permitting FSD transfers in the third quarter is expected to result in a boost in Tesla's sales. Historically, Tesla owners have been hesitant to upgrade their vehicles due to the expensive FSD package and the fact that it couldn't be transferred to a new car, making these upgrades financially unappealing. This never-before-seen allowance, together with Tesla's current FSD monthly subscription option in the United States, is anticipated to greatly improve Tesla's attractiveness in the market and its profitability during the third quarter.
During the Q2 earnings call, Tesla revealed a remarkable achievement: cars installed with FSD beta have covered over 300 million miles. This accomplishment holds great importance as it not only showcases the vastness of the distance covered but also signifies a valuable collection of data that aids in enhancing the safety and efficiency of FSD through training Tesla's autonomous systems.
FSD Transfer Criteria
Tesla has recently shared the criteria for transferring FSD to a different vehicle, as per a tweet from the user @Kdahlenburg on Twitter.
Please find the list of qualifications and prerequisites outlined below:
We are excited to let you know that as a committed Tesla owner who has invested in Full Self Driving technology, you might qualify for our ongoing transfer initiative. We value your unwavering support and commitment towards eco-friendly transportation.
Offer: Get Full Self Driving functionality on any brand-new Tesla vehicle shipped from July 20, 2023, to September 30, 2023, by surrendering the Full Self Driving feature on your current Tesla vehicle. Please refer to the following terms and conditions. Tesla cannot ensure delivery by the program's conclusion.
To qualify for this program, you must: - Meet the required criteria, - Fulfill the specified conditions, - Satisfy the necessary prerequisites, - Comply with the prerequisites stated, - Meet the prescribed qualifications, - Abide by the specified eligibility requirements, - Fulfill the designated eligibility standards, - Meet the defined program criteria, - Successfully meet the program's eligibility criteria, - Fulfill the program's specified eligibility conditions.
To qualify for this offer, you must own a Tesla car that is registered under your name and has Full Self Driving capability when you receive your new Tesla vehicle. The car should not have any pending requests for cancellation or buyback. Please note that this offer is not available for customers in Europe, the Middle East, and Africa who have an Operational Lease with third-party Lease and Fleet Management companies, unless they first buy the car from the leasing company.
Receive your brand-new Tesla car with a title during the period from July 20, 2023 to September 30, 2023.
3. Embrace the surrendering of the Full Self Driving capability on your existing Tesla vehicle.
On the other hand, you have the option to trade in your existing Tesla car directly with Tesla when you buy a new Tesla. Tesla will deactivate Full Self Driving capability in your current Tesla vehicle up to a week prior to the scheduled delivery day of your new Tesla. Throughout this procedure, your current vehicle will automatically restart for a brief period after being parked.
The Full Self Driving feature is a one-time transfer only and cannot be passed on to another vehicle or person, even in the case of a private sale. This offer cannot be used with any other special offers and cannot be exchanged for money.
Tesla has the authority to alter, adjust, or end this offer at any given moment without providing any advance warning.
Once you receive your new Tesla or if we remove Full Self Driving from your current vehicle, you cannot get it back. This rule still applies even if you decide to cancel or reverse your purchase after receiving the vehicle.
7. Second-hand automobiles and vehicles utilized for business purposes are not qualified for this program.
Tesla has the right to take away the Full Self Driving feature from your brand-new car if, in their honest opinion, they find that you have violated any of these conditions or provided false information about Full Self Driving in your existing vehicle.
9. This deal cannot be used retrospectively once the new Tesla car has been delivered.
Please carefully review the terms and conditions mentioned above. By signing this mandatory acceptance letter, you confirm that you comprehend and consent to the terms and conditions stated earlier.
In order to avail of this opportunity, kindly fill in the details provided below, put your signature, and send back this letter to your designated Tesla Sales Representative prior to the delivery of your brand new Tesla vehicle. Please provide the Vehicle Identification Number (VIN) of the Tesla vehicle equipped with the relinquished Full Self Driving capability: ...
Getting A New Tesla?
Take advantage of our referral code (nuno84363) to assist in promoting our website. Customers purchasing Model 3 and Model Y can avail a $500 discount along with a 3-month complimentary Full Self-Driving (FSD) package, whereas Model S and Model X purchasers can enjoy a $1,000 discount and 3 months of FSD for free.
Tesla Imparts Cybertruck Updates & Strong Q2 Earnings
During the second quarter of 2023, Tesla provided enthusiastic information about its much-awaited Cybertruck and unveiled impressive financial results in its earnings call.
The CEO of Tesla, Elon Musk, announced several changes to the car's suggested setups and pricing models in order to achieve the perfect balance, similar to the story of Goldilocks. The goal was to design a vehicle that is not excessively large or small, but just the right size. Tesla claims that this will be the initial truck with four doors and a six-foot bed that can easily fit into a standard 20-foot garage.
Cybertruck Set To Revolutionize EV Market
The Cybertruck is currently being tested worldwide to ensure it meets the necessary criteria and is officially approved. Its one-of-a-kind appearance and innovative characteristics, such as being less than 19 feet long, have generated an incredible reaction, resulting in over a million pre-orders since its introduction. Nevertheless, Tesla has maintained an air of mystery by disclosing limited details regarding the vehicle's ultimate price and specific configuration.
An image that was made public hinted at the presence of a structural battery pack equipped with 4680 cells, an aspect that Tesla has not officially verified. If this turns out to be true, it would enhance the Cybertruck's unique attractiveness, potentially revolutionizing the electric vehicle sector. Tesla has mentioned that production of Cybertrucks will commence in 2023, and production rates will increase in 2024.
Tesla's Strong Finances Despite Big Projects
In terms of finances, Tesla announced impressive results for the production and distribution of their vehicles. They manufactured 479,700 vehicles and successfully delivered 466,140 during the quarter. Additionally, the company achieved a Q2 revenue of $24.93 billion, demonstrating a remarkable 47% growth compared to the previous year, surpassing the forecasts of analysts who anticipated $24.32 billion.
In spite of these encouraging numbers, Tesla disclosed a small decline in operating income compared to the previous year, amounting to $2.4 billion. This decrease can be attributed to a lower Average Selling Price resulting from a combination of product assortment and pricing factors, expenses incurred during the scaling up of 4680 cell production, and heightened operating costs related to projects such as the Cybertruck and advancements in artificial intelligence.
Nevertheless, the financial assets of the company continued to expand, concluding the quarter with a total of $23.1 billion in funds, including cash, equivalents, and investments. This represented a growth of $700 million, mainly fueled by the positive free cash flow of $1 billion. Nevertheless, other financial endeavors, such as debt repayments, partially countered this growth.
Tesla's second quarter earnings call in 2023 provided an optimistic outlook for the company's future. The appeal of the Cybertruck and strong financial results indicate that Tesla is prepared to advance the electric vehicle industry to new heights. With preparations underway for the production of the Cybertruck, the world eagerly anticipates a groundbreaking advancement in the realm of electric vehicles.
Tesla Teams Up With Samsung For New Self-driving Chips
According to reports, Tesla is said to be teaming up with Samsung Electronics, the prominent worldwide memory chip producer. This alliance seeks to produce Tesla's upcoming FSD chips, essential elements in the next stage of Tesla's self-driving technology.
By employing Samsung's state-of-the-art 4-nanometer node technology, these FSD chips will function as the core brainpower for Tesla's upcoming Hardware 5.0 computers. According to the Korea Economic Daily, sources indicate that Tesla's daring plan entails manufacturing these groundbreaking systems on a large scale in around three to four years.
Tesla's decision to team up with Samsung signifies a departure from its previous alliance with Taiwan Semiconductor Manufacturing Co. (TSMC). Currently, Tesla is reportedly considering the option of joining hands with both Samsung and TSMC, or exclusively shifting to Samsung, in order to facilitate the extensive manufacturing of these crucial fifth-gen car chips.
Building Strong Tech Partnerships: Musk-Lee Conclave
This significant shift in strategy began with a crucial gathering in May 2023, where Tesla's top executive, Elon Musk, and the head of Samsung Group, Lee Jay-yong, came together. The main focus of their conversation was to strengthen and broaden the technological collaboration between their two companies. In the global business sphere, Lee is also known as Jay Y. Lee, and during this crucial meeting, he put forth several appealing proposals, including favorable rates for contracts.
Samsung has a track record of providing Tesla with previous generations of FSD chips, which have played a crucial role in Tesla's vehicles. However, despite this existing partnership, Tesla opted for TSMC instead of Samsung for the production of the next-generation FSD chips. It is believed that TSMC offers better manufacturing yields using the latest 4 nm process.
Nevertheless, people with inside knowledge of the industry have recently stated that Samsung has made substantial progress in improving its production efficiency. As a result, they claim that Samsung's production yield is now almost equal to that of TSMC.
Auto Chips: Increasing Market Demand
The worldwide auto chip industry is poised to undergo significant expansion in the upcoming years. It is predicted to witness a near twofold increase from its estimated value of $76 billion this year to an astonishing $143 billion by 2029. This anticipated surge can be attributed to the growing requirement for cutting-edge auto chips, which is being driven by the widespread acceptance of self-driving and in-car entertainment systems by car manufacturers worldwide.
Tesla's hardware 4.0 is just starting its journey of being useful, and it's currently not accessible in all Tesla vehicles. Nevertheless, technology is always progressing, and while Tesla engineers finalize the creation of one hardware component, they promptly embark on crafting the next innovative breakthrough.
The hardware and software advancements will persist, even in the wake of Tesla achieving complete autonomy. The objective will consistently be to enhance driving safety, speed, and efficiency.
