The dream of a truly self-driving car has animated the auto industry for years, and Tesla’s CEO has been one of its loudest proponents. But the company has yet to deliver on the promises of robotaxis dominating the roads.
Tesla offers a system it calls Full Self-Driving that, contrary to its name, merely assists human drivers who are fully responsible for operating the vehicle and must keep their hands on the wheels and eyes on the road.
The company charges customers $15,000 for the optional system and defers some of that revenue because it’s not a finished product. It will not be until the feature lives up to its billing — something Musk claims may happen this year.
“Elon Musk dipped into the well and recycled prior comments around FSD being complete by year-end, demand outstripping supply and vehicles being an appreciating asset over time as full self-driving becomes a reality,” Jeffrey Osborne, a Cowen & Co. analyst, said in a note recapping the Tesla CEO’s comments. “We question all of these assumptions.”
Tesla has begun to recognize some of its deferred revenue, including $324 million in the fourth quarter of last year — by far the most ever.
But even with that bigger-than-usual haul, the automaker has been recognizing less deferred revenue than it’s forecast in regulatory filings. At $639 million, its projection for 2023 is the lowest in almost four years.
Tesla did not say in its earnings release or investors call last week how much deferred revenue it recognized in the first quarter. The figure should show up in its 10-Q filing due in the coming days.