Tesla’s Self-Driving Feature Trial Offer, Prediction of Net Income Up 21%

Tesla’s decision to offer new electric vehicle buyers the opportunity to experience its advanced driving assistance technology, FSD (Full Self-Driving), is receiving positive reviews.

As the proportion of FSD subscribers continues to increase, it can significantly contribute to Tesla’s revenue and net profit growth.

According to the investment journal The Street on the 28th, Elon Musk’s decision to mandate the explanation and trial period of Tesla’s FSD function is crucial from a long-term strategic perspective.

Musk recently emailed internal staff to announce that he would introduce a procedure related to the FSD software for all customers purchasing a new Tesla vehicle in North America.

Previously optional features that could only be purchased separately will now be installed in all vehicles. This will be followed by a one-month free trial period, and consumers will be required to listen to an explanation related to this.

Musk acknowledged that this procedure could slow down vehicle delivery speed but showed a firm attitude that it is a system that must be introduced.

Gene Munster, a researcher at investment firm Deepwater Asset Management, concluded that Musk’s decision led to a rise in Tesla’s stock price.

Tesla’s stock price rose nearly 5% in one day on the 26th when the news of the mandatory installation of FSD was announced. The stock price also rose 1.22% compared to the previous day on the 27th.

Munster said, “Elon Musk’s decision is evidence that the automobile market is shifting towards electric and autonomous vehicles,” he expects the number of Tesla FSD subscribers to increase significantly.

Currently, only 5% of Tesla vehicle buyers use the FSD service, but this number could increase to 20% by 2026.

Munster predicts that the increase in FSD subscribers will contribute $1.1 billion to Tesla’s revenue and $1 billion to net profit by 2026.

Considering the growth trend of the subscription service market, he also suggested that the expansion of FSD sales could increase Tesla’s net profit by 15% in 2027 and 21% in 2028.

FSD is a partial autonomous driving technology that allows Tesla vehicles to recognize the surrounding environment and objects through AI technology and to drive or stop accordingly.