20:41:44 EDT Fri 17 May 2024
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Tesla Inc CDRs (CAD Hedged)
Symbol TSLA
Shares Issued 12,900,000
Close 2023-07-20 C$ 24.59
Market Cap C$ 317,211,000
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Globe/wire say Tesla won't give up on full self-driving

2023-07-21 08:08 ET - In the News

The Globe and Mail reports in its Friday edition that Elon Musk is making a calculated bet: Sacrifice margins now for better ones later when full self-driving software is completely integrated into Tesla cars. A Reuters dispatch to The Globe says that it is a plan that could intensify the electric-vehicle price war and irk investors. Shares of the automaker fell nearly 10 per cent on Thursday after Mr. Musk signalled no end in sight for price cuts. "The short-term variances in gross margin and profitability really are minor relative to the long-term picture. Autonomy will make all of these numbers look silly," Mr. Musk said. To be sure, getting more cars on the road would help Tesla maintain its dominant U.S. market share in "turbulent times" and unlock precious usage data needed to train the artificial intelligence models behind its self-driving technology, but investors are questioning whether it's worth sacrificing current profitability for technology that has for years missed Mr. Musk's targets to achieve full self-driving capability and is in the crosshairs of regulators after a number of crashes involving Tesla vehicles. Mr. Musk believes full self-driving could one day account for most of Tesla's value.

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