In a tweet over the weekend, Elon Musk announced plans to roll out the FSD beta software to a new batch of 100,000 customers. And by unlocking a lot of deferred revenue, Tesla’s earnings outlook for the second quarter of 2022 is looking brighter.
It is reported that the 10.12.2 version of the FSD Beta software brings a smoother cross-routing control experience, especially long left sections, and can operate on roads that lack preset map data.
Apparently, Tesla is still trying to get close to its plans to “volume production” its self-driving fleet in 2024. Tesla Chief Financial Officer Zachary Kirkhorn explained: After the company receives the FSD payment, it immediately recognizes about 50% of the revenue for the current quarter, and the rest is treated as deferred revenue.
A significant portion of this deferred revenue was also confirmed as Tesla rolled out the FSD Beta software to a new batch of 100,000 customers, boosting the electric vehicle giant’s upcoming fiscal 2022 quarter. Revenue expectations.
To put it conservatively, Tesla is expected to recognize around $300 million in deferred revenue—provided the company receives at least $3,000 from each FSD-eligible customer.
Even so, affected by many factors, it is still quite difficult for the outside world to accurately estimate this part of the income. First, Tesla priced the Autopilot ADAS FSD feature at $8,000 in 2016.
Since January 2022, the feature will be available for a one-time payment of $12,000, and customers will be able to subscribe to experience FSD for $199 a month.
These factors confuse the exact amount of payments and subscriptions and the timing of deferred revenue recognition, not to mention Tesla being fairly proactive in recognizing incremental deferred revenue through the volume and utility of OTA update pushes.
Tesla had $1.594 billion in deferred revenue on its balance sheet as of March 31, 2022. And in February 2022, the company announced that it would recognize $962 million in deferred revenue this year (down from a previous estimate of $1.39 billion).
However, combined with Elon Musk’s latest tweet, Tesla is still expected to give more modest revenue data in 2022 Q2.
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