I didn’t say anything about them not having software revenue! Their software revenue is likely pretty significant!
Anyway not sure the specific quote you are referring to. I guess I’d be a bit surprised if it suggests FSD (the City Streets portion) is important in the foreseeable future. There is not any evidence that it is, and there is not a competitive market for any such feature at the moment.
Short term traders don’t care much about about FSD other than its headlines and their reactionary effects on other short term traders.
Long term investors see FSD the way they saw the first iPhone (which had no apps, barely any functionality, and was an expensive toy for tech-nerds).
The driving part of FSD sits on a MOUNTAIN of generalized AI infrastructure that is completely portable to other uses.
Tesla has mentioned this several times.
Killer advantages that have come out of the R&D that people buying FSD has paid for (all of which apply to generalized AI applications outside of a vehicle):
- NN architecture that can generate live 3D vector-map of the world (including printed detail) at decent framerate on a device low enough powered to walk around.
- The Data Cycle infrastructure that feeds new data to and trains these new NNs, which in itself in in its earliest incarnation is allowing insanely fast iteration on the NN system above. (This is the easiest one to sleep on, but the speed in which they replaced the object detection nets with the Occupancy net, AND the improvement in ability for this 1.0 version of the Occupancy net is incredible. And due to the Data Engine they’ve set up.)
- The worlds-first production NNPU, the Dojo v1.0 chip, which is already made for massive tiling and scaling (NN processing as a service will be a huge revenue generator, like Amazon’s various compute-as-service).
- A stable of most of the world’s newest and most of the best AI and NN engineers (and NNPU chip designers!). Remember that AI Day 1 was a hiring event. And their applications jumped insanely high. Tesla has a mega-size and mega-funded AI project and people wanting to work on AI are going there. This is the real reason Google and Apple dominated the past 20y. The engineers that were there and were paid to build cool stuff.
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And this is just the stuff we know about today! AI Day 2.0 is going to be so revealing.
Data will be this century’s oil.
AI will be this century’s microchip. It will change every industry top to bottom.
Tesla may be overvalued as a car company, but anybody thinking of them as a car company is going to get burned again and again.
Tesla is a tech company. They will be a Tech giant in a decade.
Tesla is Apple in 2006.