Musk Issues 'Hard Requirement' To Demonstrate Tesla's Driver Assistance Software To Buyers, Even If Delivery Process Slows: 'This Is Very Important'
Portfolio Pulse from Chris Katje
Elon Musk has mandated a 'hard requirement' for Tesla staff to demonstrate the company's full self-driving (FSD) software to all new vehicle buyers in the U.S., even if it slows down the delivery process. This move aims to ensure customers are aware of the driver-assist features, which are seen as a key growth catalyst for Tesla. The demonstrations could paradoxically slow vehicle deliveries but are deemed crucial by Musk for showcasing FSD's capabilities.

March 25, 2024 | 8:45 pm
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Elon Musk's directive for Tesla to demonstrate its FSD software to new buyers could impact Tesla's stock in the short term by potentially slowing vehicle deliveries, despite aiming to enhance customer awareness and adoption of the FSD software.
While the requirement to demonstrate FSD software to all new buyers underlines Tesla's commitment to its driver-assist features and potential growth catalyst, it could paradoxically slow down the vehicle delivery process. This slowdown might impact Tesla's ability to achieve its delivery milestones in the short term, potentially affecting investor sentiment. However, the long-term benefits of increased FSD adoption and customer awareness could offset any temporary negative impacts on stock price, making the overall short-term impact neutral.
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