Elon Musk, the CEO of Tesla, has made it mandatory for employees in North America to install and activate the company’s Full Self-Driving (FSD) system, version 12.3.1, and demonstrate it to customers before completing vehicle deliveries. Despite the potential slowdown in the delivery process, Musk believes it is necessary for customers to experience how well the FSD system actually works. While all Tesla vehicles come equipped with the standard Autopilot driver assistance system, the FSD option is available for an additional cost of $199 per month for most customers in North America. However, it is important to note that Tesla’s FSD system does not turn cars into fully autonomous vehicles, and drivers must remain attentive and ready to take control of the vehicle at all times.
Tesla owners who opt for the FSD package also have the opportunity to access the FSD Beta system, which allows them to test and provide feedback on new driver assistance features on public roads. The company has faced pressure from the National Highway Traffic Safety Administration to improve the safety of its Autopilot, FSD, and FSD Beta systems, leading to voluntary recalls in recent years. Despite these efforts, Tesla has not yet developed fully autonomous vehicles and stresses the importance of driver attentiveness and readiness while using their FSD technology. Tesla did not immediately respond to a request for comment on Musk’s new requirement for employees.
In addition to the FSD installation requirement, Tesla has issued a memo to its staff asking for volunteers to sign up for additional shifts to facilitate vehicle deliveries in the last days of the quarter. Salaried employees are asked to help with delivery tasks, but they do not receive extra pay for these efforts. Hourly employees, on the other hand, are eligible for additional compensation by billing their hours to a sales and delivery cost center. The company is seeking employee support to ensure a smooth delivery process and avoid a potential drop in year-over-year deliveries for the first quarter.
Tesla is currently facing challenges in the market, with its stock price falling approximately 30% this year. Analysts predict that the company may report a decline in deliveries for the first quarter compared to the same period last year. Independent researcher “Troy Teslike” forecasts that Tesla will deliver around 407,000 vehicles in the first quarter, down from 422,875 deliveries in the previous year. The company’s shares closed at $172.63 on Monday, reflecting investor concerns about its delivery numbers and overall performance in the market. Despite these challenges, Tesla continues to focus on improving its technology and expanding its customer base in the electric vehicle market.
Overall, Elon Musk’s decision to require employees to install and demonstrate the FSD system to customers before vehicle deliveries reflects Tesla’s commitment to showcasing its latest driver assistance technology. With ongoing pressure to improve the safety and reliability of Autopilot, FSD, and FSD Beta systems, Tesla is working to address regulatory concerns and enhance the user experience for its customers. By encouraging employee involvement in the delivery process and seeking additional support in the last days of the quarter, Tesla aims to maintain its position as a leading player in the electric vehicle industry. However, challenges in the market and uncertainties about delivery numbers may impact the company’s performance in the near future.
