Another Missed Prediction: Musk Admits Teslas Need Full-Self Driving Upgrades

Tesla CEO Elon Musk has acknowledged that existing customers will require hardware upgrades for their vehicles to support the company's Full Self-Driving (FSD) system, contrary to previous assurances that only software updates would be necessary. This revelation came during a conference call discussing Tesla's recent financial performance, which highlighted a 71% drop in quarterly profits. Despite the downturn, Tesla anticipates a return to growth in 2025, driven by more affordable electric vehicle models. Musk also announced plans to deploy unsupervised FSD as a paid service in Austin, Texas by June, although investor skepticism persists due to past unfulfilled promises.
Beyond the technical challenges of FSD, Tesla faces broader difficulties, including declining sales in key European markets and reputational damage linked to Musk's controversial political behavior. Tesla's reliance on an AI-first strategy without LIDAR technology has drawn criticism, as most other autonomous systems incorporate LIDAR for enhanced safety. Additionally, geopolitical factors, such as competition from Chinese EV manufacturers and tariffs from the Trump era, present further hurdles. Nonetheless, Tesla remains optimistic about its future prospects despite these challenges.
RATING
The article provides a mostly accurate and timely analysis of Tesla's challenges and developments related to its Full Self-Driving system. It effectively uses credible sources, such as Elon Musk's statements, to support its claims, though some areas could benefit from additional sourcing and corroboration. The story is balanced, offering both critical perspectives and Tesla's official statements, but slightly leans towards highlighting the company's struggles and controversies.
The article addresses topics of significant public interest and has the potential to influence public opinion and consumer decisions. However, it could improve in areas such as transparency and clarity, particularly regarding the technical aspects of the FSD system and the specific reasons for Tesla's profit decline. Overall, the article is engaging and relevant, with the potential to provoke debate and spark meaningful discussion among readers.
RATING DETAILS
The story accurately presents several key facts, such as the need for hardware upgrades for Tesla's Full Self-Driving (FSD) system, which Elon Musk confirmed in a conference call. The article's claim about Tesla's profit decline from $15 billion in 2023 to $7.2 billion in 2024 is supported by the earnings report, showing a significant drop in net income. Additionally, the story correctly reports Tesla's statement about Autopilot's performance and the planned launch of unsupervised FSD in Austin, Texas.
However, some areas require further verification, such as the specifics of the hardware upgrades and the exact nature of the free upgrades for customers. The article also mentions Tesla's sales decline in the UK and other markets, attributing it to Elon Musk's controversial behavior, which needs more detailed evidence to confirm causation. Overall, the story is mostly accurate but could benefit from additional sourcing and corroboration on some claims.
The article presents a balanced view by including both Tesla's official statements and criticisms from investors and analysts. It highlights Elon Musk's admissions about the need for hardware upgrades and his history of overpromising, providing a critical perspective on Tesla's claims. The inclusion of investor Ross Gerber's skepticism adds to the balance.
However, the article leans slightly towards a critical tone, focusing on Tesla's challenges and missed promises. While it does mention Tesla's future growth prospects, the emphasis is more on the company's struggles and controversies. A more balanced article might include additional perspectives from Tesla supporters or experts who could provide a more favorable view of the company's innovations and potential.
The article is generally clear and well-structured, with a logical flow of information. It effectively uses direct quotes from Elon Musk and other sources to illustrate key points, making it easier for readers to follow the narrative.
However, some sections could benefit from clearer explanations, particularly the technical aspects of the FSD system and the hardware upgrades. Simplifying these details or providing additional context could improve comprehension for readers who may not be familiar with the intricacies of autonomous vehicle technology. Additionally, reducing the use of jargon and ensuring consistent terminology would further enhance clarity.
The article cites Elon Musk's statements from a conference call and includes perspectives from investors and analysts, suggesting a reliance on credible sources. The use of direct quotes from Musk and references to Tesla's official presentations lend authority to the reporting.
However, the article could improve by providing more detailed attribution for some claims, such as the specific sources for Tesla's sales figures and the impact of Musk's behavior on the company's sales. Including a broader range of sources, such as industry experts or independent analysts, could enhance the story's credibility and provide a more comprehensive view.
The article provides some context for its claims, such as Musk's history of ambitious promises and the challenges Tesla faces with its FSD system. It also explains the need for hardware upgrades and the potential implications for Tesla and its customers.
However, the article lacks transparency in certain areas, such as the methodology behind the reported sales figures and the specific reasons for Tesla's profit decline. Greater transparency about the sources and evidence behind these claims would help readers better understand the basis for the article's assertions. Additionally, disclosing any potential conflicts of interest, such as relationships between the publication and Tesla or its competitors, would enhance transparency.
Sources
- https://cnevpost.com/2025/01/30/tesla-q4-2024-earnings/
- https://beamstart.com/news/another-missed-prediction-musk-admits-173877312221
- https://www.arenaev.com/teslas_hw3_to_hw4_upgrade__yet_another_roadblock_on_the_neverending_path_to_full_selfdriving-news-4378.php
- https://www.cbsnews.com/news/teslas-earnings-q4-fall-short-2025/
- https://www.investopedia.com/tesla-earnings-q4-fy2024-elon-musk-conference-call-fsd-8780773
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