Tesla Announces Ability to Transfer FSD; Must Take Delivery in Q3 [Full List of Requirements]
During a significant earnings announcement in the second quarter, Tesla revealed impressive numbers with a revenue of $24.9 billion and a net income of $2.7 billion, greatly exceeding what Wall Street had predicted. However, what took many off guard was the unexpected decision by the company to offer customers a special chance to transfer their Full Self-Driving (FSD) package within the next three months.
This subject has been a persistent concern for Tesla and Elon Musk over the years, and with good reason. The cost of Full Self-Driving (FSD) has significantly increased. Consequently, individuals who were fortunate enough to obtain this technology at a surprisingly low price of $5,000 would now have to pay three times that amount if they wished to upgrade their Tesla. In May, the company took to Twitter to solicit suggestions for enhancement. The option to transfer FSD to another vehicle ranked high on the list.
During the recent earnings call, another query regarding FSD transferability came up. Musk disclosed that, due to customer request, Tesla will now allow a single transfer of FSD during the Q3 period. This offering gives current Tesla owners the chance to switch to a new Tesla model without having to buy the expensive FSD package again, which is priced at $15,000 in the United States.
Tesla Suggests Possible FSD Licensing Deal
During the same financial briefing, Musk hinted at an upcoming revolutionary endeavor. He divulged initial discussions concerning the licensing of Tesla's FSD technology to a prominent car manufacturer, while refraining from providing further details.
This possible partnership highlights Tesla's distinct position in the self-driving car industry. Musk stressed the vital importance of Tesla's extensive road information, collected from its Autopilot and Dojo initiatives, in achieving success. This priceless collection of data, unrivaled by any rival, supports Tesla's speedy advancements in artificial intelligence (AI) and its dominant position in the field.
Tesla's Earnings Call: Listen Now
You have the opportunity to tune in to a recording of Tesla's earnings call right here.
Expectations For FSD Transfers
The announcement that Tesla will now allow transfers of its Full Self-Driving (FSD) package during the third quarter is predicted to lead to a surge in sales for the company. Historically, Tesla owners have been hesitant to upgrade their vehicles due to the exorbitant price of the FSD package and the fact that it couldn't be transferred to a new vehicle. These factors made it financially unappealing to invest in such upgrades. However, this groundbreaking decision, along with Tesla's ongoing monthly subscription service for FSD in the United States, is projected to greatly improve Tesla's attractiveness in the market and boost its profitability throughout Q3.
During the Q2 earnings call, Tesla announced a remarkable achievement: cars equipped with FSD beta have traveled over 300 million miles. This milestone holds great importance, not just because of the sheer magnitude of the distance covered, but also because it means that a vast amount of data has been gathered to train Tesla's autonomous systems. This data will contribute to enhancing the safety and efficiency of FSD.
FSD Transfer Requirements
According to a Twitter user named @Kdahlenburg, Tesla has recently shared the guidelines for transferring FSD (Full Self-Driving) to a different vehicle.
The necessary conditions are as follows:
We're excited to let you know that as a valued Tesla owner with Full Self Driving capability, you might qualify for our ongoing transfer program. We value your ongoing support and commitment to eco-friendly transportation.
Offer: Obtain complete autonomous driving features on any brand-new Tesla car shipped between July 20, 2023, and September 30, 2023, by relinquishing the full self-driving capability on your existing Tesla vehicle. This is contingent upon the terms and conditions mentioned below. Tesla cannot ensure delivery by the program's conclusion date.
To qualify for this program, you must:
To enjoy the benefits of this offer, you must possess a Tesla vehicle that is both legally registered and fully equipped with Full Self Driving capability when you receive your new Tesla. It is important to note that the vehicle should not be undergoing a cancellation or buyback process. Please take note that in the EMEA region, individuals who have an Operational Lease with Lease and Fleet Management companies provided by a third party are not eligible, unless they acquire ownership of the vehicle from the leasing company beforehand.
Receive your brand-new Tesla car with a title from July 20, 2023 to September 30, 2023.
3. Embrace the relinquishment of the Full Self Driving capability on your existing Tesla car.
If you prefer, you have the option to trade in your existing Tesla vehicle directly with Tesla when you buy a new Tesla. Tesla will remove the Full Self Driving feature from your current Tesla up to a week before your planned delivery date for the new Tesla. During this procedure, your current vehicle will automatically restart for a brief period after being parked.
The Full Self Driving feature has a one-time transfer limit, meaning it cannot be transferred to another vehicle or individual, even if the vehicle is privately sold. This offer cannot be used or combined with any other promotion, and it cannot be exchanged for cash.
Tesla has the authority to alter, amend, or end this promotion at any given moment without any prior notification.
Once you receive your new Tesla vehicle or if we remove Full Self Driving capability from your current vehicle, you cannot undo the loss of this feature. It stays irreversible, even if you decide to cancel or reverse your purchase post-delivery.
7. Second-hand automobiles and vehicles utilized for business endeavors do not qualify for this program.
Tesla has the right to take away the Full Self Driving feature from your new car if it believes in good faith that you have violated any of these conditions or provided false information regarding Full Self Driving in your existing vehicle.
This promotion cannot be used retrospectively once the new Tesla car has been delivered.
Please carefully review the terms and conditions provided above. Upon signing this legally binding acceptance letter, you confirm your comprehension and consent to the terms and conditions stated above.
In order to take up this opportunity, kindly fill in the details provided below, put your signature, and send back this letter to your Tesla Sales Advisor prior to receiving your brand-new Tesla vehicle. The Vehicle Identification Number (VIN) of your Tesla vehicle that has relinquished the Full Self Driving capability is: ...
Getting A New Tesla?
Take advantage of our referral code (nuno84363) to contribute to our website. Customers purchasing the Model 3 and Model Y will receive a discount of $500, along with a complimentary three-month subscription to Full Self-Driving (FSD) feature. Similarly, buyers of the Model S and Model X will enjoy a discount of $1,000, as well as three months of FSD without any charge.
Tesla Shares Cybertruck Updates And Strong Q2 Results
During the Q2 2023 Earnings Call, Tesla provided thrilling advancements on the eagerly awaited Cybertruck and unveiled impressive financial results.
The chief executive officer, Elon Musk, mentioned a variety of changes to the car's intended setups and pricing strategies in order to achieve the perfect balance, which he humorously referred to as 'Goldilocks'. The aim was to create a vehicle that was not excessively large or small, but just perfect. Tesla proudly claims that this is the initial truck design known to us that will offer four doors and a six-foot bed, all while easily fitting into a standard 20-foot garage.
Cybertruck Set To Revolutionize EV Market
The Cybertruck is presently going through global trials to acquire final certification and validation. Its distinct design and revolutionary characteristics, encompassing a length shorter than 19 feet, have generated an extraordinary reaction, resulting in more than a million pre-orders following its announcement. Nevertheless, Tesla has maintained an air of mystery by divulging minimal information regarding the ultimate price and specific configuration of the vehicle.
An unveiled image implied the integration of a structural battery pack with 4680 cells, a fact that Tesla has not officially verified. If proven accurate, this would enhance the futuristic attractiveness of the Cybertruck, potentially revolutionizing the electric vehicle sector. Tesla has indicated that production of Cybertrucks is scheduled to commence in 2023, with a subsequent increase in 2024.
Tesla's Strong Finances Despite Big Projects
In terms of finances, Tesla achieved impressive results in vehicle production and distribution, manufacturing a staggering 479,700 automobiles while delivering 466,140 within the quarter. Surpassing the predictions of analysts, the company's second-quarter revenue amounted to $24.93 billion, demonstrating a remarkable year-on-year expansion of 47%.
In spite of these encouraging statistics, Tesla recorded a small decline in operating income compared to the previous year, amounting to $2.4 billion. This drop was linked to a decrease in the Average Selling Price resulting from a combination of product mix and pricing factors. Furthermore, expenses associated with the expansion of 4680 cell production and heightened operating costs related to projects such as the Cybertruck and advancements in artificial intelligence contributed to the overall decrease.
Nevertheless, the financial resources of the company kept expanding, concluding the quarter with a total of $23.1 billion in funds, which consisted of cash, assets that can be easily converted to cash, and investments. This represented a rise of $700 million attributed to the surplus cash generated of $1 billion. However, the repayment of debts partially balanced out these financial endeavors.
The recent Q2 2023 Earnings Call by Tesla showcased a promising outlook for the company's future. The captivating appeal of the Cybertruck, combined with Tesla's strong financial achievements, indicates that the company is prepared to challenge the existing limits of the electric vehicle industry. With preparations underway for the production of the Cybertruck, the whole world anticipates a groundbreaking advancement in the realm of electric vehicles.
Tesla Partners With Samsung For New Self-driving Chips
According to reports, Tesla plans to team up with Samsung Electronics, a prominent worldwide producer of memory chips. This alliance has the intention of producing Tesla's upcoming FSD chips, which are key elements in the future development of Tesla's self-driving technology.
Using Samsung's state-of-the-art 4-nanometer node technology, these FSD chips will act as the core brain for Tesla's upcoming Hardware 5.0 computers. According to reports from the Korea Economic Daily, insiders suggest that Tesla's daring plan includes manufacturing these groundbreaking systems on a large scale in about three to four years.
Tesla's decision to join forces with Samsung represents a departure from its previous alliance with Taiwan Semiconductor Manufacturing Co. (TSMC). Currently, Tesla is reportedly considering the option of teaming up with both Samsung and TSMC or completely switching to Samsung alone for the extensive manufacturing of these crucial fifth-generation automotive chips.
Tech Alliances: Musk And Lee Meet
The blog section could be rewritten as follows: The major shift in strategy began with a significant encounter in May 2023, where Tesla's Chief Executive Officer, Elon Musk, and the head of Samsung Group, Lee Jay-yong, held a vital meeting. The main focus of their discussion revolved around strengthening and broadening the technological partnership between their companies. Internationally, Lee is often referred to as Jay Y. Lee, and during this crucial meeting, he put forward a number of attractive propositions, including favorable pricing in the contractual agreements.
Samsung has a past of providing Tesla with previous models of FSD chips. These chips have played a crucial role in Tesla's cars. However, Tesla decided to choose TSMC over Samsung initially for the production of the next-generation FSD chips. People speculate that Samsung has better manufacturing efficiency at the advanced 4 nm process.
Nevertheless, according to insiders in the field, Samsung has made remarkable progress in improving its manufacturing efficiency, reaching a level that is nearly comparable to that of TSMC.
Growing Auto Chip Demand And Market Influence
The worldwide car chip industry is set to undergo remarkable expansion in the upcoming years. It is projected to almost double its current value of $76 billion this year and reach an astonishing $143 billion by 2029. This anticipated surge can be credited to the rising need for cutting-edge automotive chips, driven by the widespread embrace of autonomous vehicles and in-car entertainment systems by car manufacturers across the globe.
Tesla's latest hardware 4.0 is currently in its early stages of usefulness; in reality, it hasn't been installed in all Tesla vehicles yet. Nonetheless, the field of technology is ever-changing, and as Tesla engineers complete the development of one hardware component, they swiftly move on to the next breakthrough.
As Tesla reaches the pinnacle of complete autonomous driving, the advancement of both hardware and software will persevere. The constant objective lies in enabling a more secure, speedy, and resourceful driving experience.
