Tesla, under the leadership of Elon Musk, has announced a one-month trial of its Full Self-Driving (FSD) technology for both new and existing customers in the United States. This move comes amid pressure on the company’s sales and margins due to price competition and weakening demand. FSD is an optional feature priced at $12,000 that allows vehicles to navigate city streets, although Tesla emphasizes that its driver-assist systems such as Autopilot and FSD still require active driver supervision and do not make the vehicles autonomous.
In recent years, Elon Musk has faced challenges in delivering on his promise of achieving full autonomy for Tesla vehicles. The company’s driver-assist software is currently under regulatory scrutiny regarding safety and marketing practices. To address this issue, Musk has mandated that Tesla staff provide demonstrations of FSD to new buyers and owners of serviced vehicles. According to two emails authenticated by a Tesla source, this move will be implemented starting this week for all US cars with the capability for FSD.
Tesla’s margins have been impacted by a price war with competitors that began over a year ago. In January, Tesla warned of slower sales growth this year as it focuses on producing its next-generation EV, codenamed “Redwood.” The company is also facing increased regulatory scrutiny of its self-driving systems and other areas in the US and some European countries. In December, Tesla recalled nearly all of its 2 million vehicles on US roads to implement new safety measures. Despite these challenges, Tesla continues to innovate and push the boundaries of what is possible with electric vehicles and self-driving technology.
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