Tesla ‘lost confidence’ in auto driving after lowering self-driving revenue forecast?

One analyst noted that Tesla’s forecast for Autopilot revenue appears to have slipped. Tesla said in a filing last week that it expects to generate $962 million in deferred revenue this year, some of which is related to fully autonomous driving (FSD). FSD is a suite of self-driving features sold by Tesla that still requires attentive human driver intervention.

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Piper Sandler analyst Alexander Potter said the figure was lower than Tesla’s $1.39 billion forecasts three months ago and also compared with CEO Elon Musk’s January 2019 estimate. The remarks on the earnings call on the 26th did not match.

Musk said last month that Tesla believes FSD will gradually become its most important source of profit and reiterated its previous prediction that widespread FSD adoption would lead to one of the largest increases in asset value in history.

“Margins will rise when FSD’s revenue is released, but Tesla may have lost confidence in its expectations,” Porter wrote in a note Sunday, though he raised Tesla’s Target price, “Musk is optimistic about FSD prospects in 2022, but don’t get too excited just yet.”

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