Tesla's FSD Revenue and Future Ride-Hailing Plans

Tesla's FSD technology faces challenges despite revenue growth, while Musk pushes for federal regulations to ease deployment.

### Tesla's FSD Revenue and Future Prospects in Ride-Hailing
* 🚗 Tesla recognized over **$300 million in FSD revenues** during the last quarter, driven by the release of FSD on the Cybertruck, indicating **successful revenue recognition for technology already delivered**.
* 🔍 Despite the impressive revenue figures, there are still significant concerns regarding the functionality of FSD, as it **cannot operate without a driver**, which remains a **critical issue for Tesla**.
* 📊 The latest version of FSD, 12.5, has shown some improvements in driving feel but continues to exhibit problems like **rolling through stop signs**, highlighting the need for **further enhancements**.
* 🏛 Elon Musk's comments about seeking federal regulations for autonomous technology suggest a **desire for streamlined approval processes**, which could benefit Tesla's **operational efficiency**.
* 📈 The potential for Tesla to launch a ride-hailing service in Texas and California next year indicates a **shift towards monetizing their technology**, although it is noted that ride-hailing and full autonomy are **distinct concepts**.
* 💰 The company plans a capital expenditure of **$11 billion**, slightly up from the previous estimate of **$10 billion**, which aligns with their ongoing investments in **technology and infrastructure**.
* 🖥 A significant portion of Tesla's investment is expected to go towards **NVIDIA chips**, emphasizing the reliance on **external technology for training capabilities** in the near term.
* 🔗 Overall, while FSD presents challenges, its integration with future ride-hailing services could lead to **substantial earnings growth for Tesla**, provided regulatory hurdles are cleared.

Truist's Stein: Tesla FSD Is Amazing Tech But Has Failures

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Tesla's FSD Revenue and Ongoing Challenges

Tesla recognized over $300 million in FSD revenues, mainly from the Cybertruck's sales.

While the technology is impressive, it still requires a driver and has known failure modes.

5, has shown some improvements in driving feel but continues to exhibit minor driving infractions.

Elon Musk's Role in Regulating Driverless Car Technology

Elon Musk is focused on improving Tesla's driverless car technology and is seeking regulatory approval for its deployment.

He expressed interest in working on federal-level rules for autonomous technology, aiming to simplify the regulatory process.

Musk's comments on ride-hailing services in Texas and California indicate Tesla's future expansion into this market, raising questions about the transition from consumer cars to a proprietary ride-hailing service.

The Distinction Between Ride-Hailing Services and Full Autonomy

Ride-hailing services and full autonomy are separate concepts, with the former potentially launching without FSD.

The two services are complementary and could drive significant earnings growth for the company.

The decision to implement ride-hailing and the need for driverless operation are interconnected but not perfectly linked.

The business's CapEx spend has increased from $10 billion to $11 billion, with a similar number projected for next year.

Nvidia is highlighted as the biggest winner from this investment, with Musk emphasizing their spending on hopper generation chips.

The training capability for the business will primarily come from Nvidia's investment, rather than their internal D1 chip or dojo computer, for at least the next year.