"I hesitate to say this but I think we'll do it this
year," said Tesla CEO Musk, speaking on a conference call. Musk has missed
his previous targets to achieve self-driving capability dating back years.
The test version of what Tesla calls Full Self-Driving (FSD)
software will be "two steps forward, one step back between releases,"
Musk said, "but the trend is very clearly towards full self driving,
towards full autonomy."
The technology as it stands now has drawn legal and
regulatory scrutiny following crashes. Tesla has said the technology does not
make the car autonomous, and requires driver supervision.
Tesla's financial chief Zachary Kirkhorn said its automotive
margin in the first quarter was hurt not only by price cuts, but also increased
deferred revenue for FSD software and that "this deferral should get
recognized once some of the software catches up."
Kirkhorn did not elaborate.
Guidehouse Insights analyst Sam Abuelsamid said Tesla is
making some changes to the car's hardware, which disables some FSD features on
newer vehicles temporarily.
Tesla sells FSD software as an option for as much as $15,000.
Late last year, Tesla removed ultrasonic sensors from Model
3 and Model Y cars, and said some features such as "smart summon" and
"autopark" would be temporarily unavailable.
"We do have this unique strategic advantage," Musk
said. "We are making a car that, if autonomy pans out, that asset will be
worth a hell of a lot more in the future than it is now."
Tesla reported a lower-than-expected quarterly margin on
Wednesday but Musk said he would prioritize sales growth over profits in a weak
economy. © Reuters