Although Musk didn’t offer any rationale for the switch, his compensation is partly dependent on growing the business. Reaching 10 million active FSD subscriptions is among the targets Tesla must hit for the CEO to earn additional shares under the pay package shareholders approved in November. Achieving a series of market capitalisation and operational milestones could net him around US$1 trillion worth of stock.
Tesla hasn’t disclosed how many of its customers have bought or are paying monthly subscriptions for FSD. Musk acknowledged challenges with the product early last year when he was asked if the company would need to retrofit older vehicles equipped with less capable computing systems.
“The honest answer is that we’re going to have to,” Musk said during an earnings call. “That’s going to be painful and difficult but we’ll get it done. Now I’m kind of glad that not that many people bought the FSD package.”
FSD also has been a target of criticism over how Tesla has marketed the system and whether it’s safe to use. Allegations that the company is misleading Californians by exaggerating the automated-driving capabilities of its vehicles could lead to the state suspending the company’s sales licence for 30 days early this year.
See also: Nvidia debuts new AI tools for autonomous vehicles, robots
Tesla fell well behind China’s BYD Co in global battery-electric vehicle deliveries last year. In the midst of back-to-back annual sales declines, Musk has placed greater emphasis on initiatives including FSD, robotaxis and humanoid robots.
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