Business Model

Pricing

  • One-time Purchase: ~$15,000
  • Subscription: ~$199/month

Deferred Revenue

  • As of end 2022, Tesla had ~$2.9 billion in FSD-related deferred revenue
  • Q4 2022 recognized $324 million in FSD revenue

Robotaxi Plan

Tesla plans small-scale Robotaxi pilot in Austin, Texas in 2025.

Technology Comparison

DimensionTesla FSDWaymo/CruiseMobileye
SensorsVision-only (8 cameras)Multi-sensor fusionVision+LiDAR fusion
MapsNo HD mapsDepends on 3D mapsHybrid approach
DecisionEnd-to-end deep learningRule-based + formal verificationModular + rule-based
Business ModelB2C software directRobotaxi mobility serviceB2B tech supplier

Key Conclusions

  • Tesla leverages 4M vehicle fleet data network effect for rapid iteration
  • Vision-only approach costs low (~hundreds vs tens of thousands of dollars)
  • Waymo pursues “local extreme safety,” Tesla pursues “generalization capability”

Pros and Cons

Advantages:

  • Generalization
  • Iteration speed

Disadvantages:

  • Safety verification
  • Regulatory trust