Version 9 of the Tesla Autopilot feature can navigate a car through highway interchanges, off-ramps, lane changes, and exits.
Engineers added a feature called Navigate to Tesla Autopilot Version 9, a Tesla press release indicates. Tesla describes Navigate as “an active guidance feature for Enhanced Autopilot.”
Navigate will drive a vehicle from highway exit to exit, the press release claims. Thus, engineers designed Navigate i for truckers driving the Tesla Semi. If Navigate is for real, it could increase the value of the semi to long-haul truckers.
Unfortunately, the effect of Navigate and Autopilot Version 9 on insurance rates is unknown. However, I think Navigate will have little effect on insurance premiums until large numbers drivers adopt it.
Tesla Autopilot is not Full Autonomous Driving
However, drivers will still have to approve lane changes, The Verge reports. Thus, Version 9 of autopilot is not full autonomous driving.
The automaker reportedly released Tesla Autopilot Version 9 in mid-October. Instead of autonomous driving Tesla Motors (NASDAQ: TSLA) calls autopilot “an additional layer of safety that two eyes alone would not have.”
Despite that drivers will still have to pay attention to the road. Unfortunately, Tesla has not devised a means of getting stupid and careless drivers to pay attention to the road.
How Tesla Plans to make money from Self-Driving Cars
Autopilot Version 9 is only available to Tesla owners who ordered the Full Self-Driving Capability Package for $3,000 to $5,000, Electrek points out. Impressively that package will update itself like a smartphone – if you make the payments.
Consequently, Tesla Autopilot will generate float for the cash-strapped automaker. To explain, the Tesla Autopilot update gives drives a strong incentive to make payments every month.
To clarify, float is a stream of extra cash from installment payments like leases or car loans. Float is the major cash cow at American automakers like Ford (NYSE: F). For instance Ford recorded $36.34 billion in cash and short term investments on 30 September 2018.
Therefore, Elon Musk has figured out how to turn autonomous driving into a revenue stream. On the other hand, other auto drivers will quickly copy this business model.
Faster Tesla Autopilot coming in Six Months
Musk claims Tesla will release “the world’s most advanced computer for autonomous driving” in six months.
Moreover, Tesla is developing its own artificial intelligence (AI) chips to compete with those of NVIDIA (NASDAQ: NVDA), Electrek claims. Therefore, Tesla plans to enter the chip business.
In addition, Tesla hired one of the biggest chip architects in the business; Jim Keller, in 2018. Hence, Tesla’s value could increase because NVIDIA is one of the most profitable companies in Silicon Valley.
Incredibly, NVIDIA reported a gross profit of 63.24% on 31 July 2018. Musk hopes to replicate those profits by making his own chips.
Tesla Model Y Approved for production
Tesla Motors approved the Model Y for production, Musk claims. Tesla has reportedly scheduled the Model Y for release in 2020, GTM reports.
The Model Y will reportedly be the crossover version of the Model 3 economy car. If Musk his smart, he will scale back Model 3 production and concentrate on the Y. Tesla should focus on the Y because crossovers sell better than sedans in America.
Oracle (NYSE: ORC) CEO Larry Ellison claims Tesla is his second largest investment. However, Ellison did not reveal how much of Tesla he owns.
Tesla Energy is slowly falling behind the privately held Solarrun in the home solar power business, The New York Times claims. Musk claims slow development time for his solar roof tiles is delaying Tesla’s solar efforts.
Thus, Tesla is still all potential as an investment. Elon Musk has created an impressive company with interesting products that is not making money. Therefore, investors and speculators and speculators alike should stay as far away from Tesla Motors as possible.
Drivers, on the other hand, should look at Telsa’s vehicles. If they live up to the hype Tesla’s vehicles are some of most impressive on the road.