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Tesla is facing more competition of late with the likes of General Motors looking to take a bigger piece of the electric vehicle (EV) pie. Nonetheless, Tesla CEO Elon Musk is cool as a cucumber and is in no rush to release the latest technology update that customers are anxiously awaiting until it’s ready.
According to Musk in a tweet, Tesla was planning to introduce the latest full self-driving (FSD) software update on Saturday for eligible drivers based on their safety records. The update, which is called FSD Beta 10.2, was supposed to go to approximately 1,000 Tesla drivers with “perfect 100/100 safety scores,” according to Musk, who added that the number of drivers with a perfect safety score is on the rise.
Tesla drivers who enrolled in a “beta button” program were monitored for their driving habits over the course of a week. The software contributes to Tesla’s subscription revenue, costing U.S. drivers $10,000 in a lump-sum payment or $199 per month.
Over the weekend, however, Musk informed Tesla owners that the software update had been delayed due to “a few last-minute safety concerns.” As a result, the release was pushed back until Monday evening. Musk apologized for the postponement.
If the implementation of FSD Beta 10.2 goes well, Tesla will introduce the latest version to drivers with safety scores of less than 100. The rollout will be commensurate with the number of satellites that Tesla has launched.
Tesla shares fell 1% on Friday to $785. Gary Black, managing partner at registered investment advisor, The Future Fund, says Tesla is cheap at these levels. Black points out that TSLA shares are trading 80x 2022 EPS with volume growth of 78% and 66% in 2021 and 2022, respectively.
Black has a price target on Tesla’s stock of $1,100 in the next six to 12 months amid a number of catalysts.
Hands on the Wheel
Safety regulators are not thrilled about Tesla’s new self-driving feature, even though it does not enable autonomous driving. It does include an option for “autosteer on city streets” in addition to similar capabilities on the highway.