At the request of the National Highway Traffic Safety Administration (NHTSA), Tesla recalled 53822 vehicles in the United States on February 1, 2022 local time. The “stops” of the Tesla software may pose a risk of “automatic parking”, which means that the car is equipped with “FSD”.
After the news of the recall came out, the data showed that as of 8:35 EDT on February 3, Tesla‘s share price fell 2.51% to $882.91 per share.
system or defective
According to NHTSA’s recall notice, Tesla will recall a total of 53822 model s, model x, model 3 and model y vehicles. The recall document points out that Tesla will use the Internet software update to disable the “FSD automatic driving system” “rolling stop” function.
It is reported that this function allows Tesla to pass the intersection with two-way stop sign at the speed of 5.6 miles per hour. NHTSA pointed out that if the vehicle does not stop completely, the collision risk may increase when passing through the intersection.
This is not the first time that Tesla’s autopilot system has problems.
On January 18, 2022, Kevin George Aziz Riad, a driver of Tesla Model s in the United States, was charged with manslaughter for directly pointing to Tesla’s L2 assisted driving system. The San Francisco Traffic Management Bureau (SFCTA) had previously worried about the safety record of Tesla’s advanced driving assistance system, and indicated that Tesla’s FSD is only a high-level automatic driving assistance system, rather than a fully automatic driving system.
Despite frequent safety problems, Tesla’s vehicle safety data report for the fourth quarter of 2021 released on January 15, 2022 shows that in the fourth quarter of 2021, car owners using autopilot had an average accident every 4.31 million miles, with a year-on-year increase in safety of 25%; The owners who did not use autopilot but enabled active safety had an average accident every 1.59 million miles, with a year-on-year increase in safety of 20%.
software subscription service has become a new profit growth point
Software subscription service has become a new growth point of Tesla’s performance. According to the financial report, in the fourth quarter of 2021, Tesla’s number of automatic driving systems in the United States increased from 2000 vehicles in the three quarter to nearly 60 thousand vehicles. In the third quarter of 2021, Tesla’s service revenue including FSD was $894 million, accounting for 6.5% of the revenue of $13.757 billion in the quarter.
Tesla relevant person in charge said at the conference call that Tesla’s software business will have a very high profit margin in the future and will become the focus of future development. It is predicted that FSD revenue will increase by more than 50% in 2022.
The price of Tesla FSD changes with the upgrading of its functions. According to Western Securities Co.Ltd(002673) statistics, in 2015, FSD v7 Version 0 can realize automatic steering, automatic emergency steering + side collision warning, automatic lane change and automatic parking space finding, and the price is 2500 US dollars / set; In 2018, FSD V9 Version 0 realizes automatic driving in high-speed / intercity highway scene, and the price is $5000 / set; In 2019, Tesla launched the third generation of autopilot FSD (full self driving), which can realize intelligent driving functions including automatic parking, automatic assisted lane change, intelligent call and so on. Car owners can liberate their hands and feet on high-speed or ring roads. Autopilot FSD is paid for activation. The one-time purchase price is 8000 US dollars / set, and the price in China is 64000 yuan / set.
In 2020, Tesla launched the FSD beta version, which can realize full automatic driving on urban roads, and the price of each set can reach US $10000. In January 8, 2022, Mask announced that the price of Tesla fully automated driving system (FSD) in the US rose to $12 thousand in January 17th, compared with the current price increase of $2000. At the same time, Tesla will also increase the monthly payment price of FSD subscribers. At present, the monthly payment price of FSD is $199.
At the same time, the optional rate of Tesla FSD is increasing. Troyteslike data show that in 2020, the optional rate of FSD in model s / X is more than 60%, and that in model y is more than 40%. The continuous improvement of FSD option rate and price has injected power into the improvement of gross profit margin of Tesla automobile business.
Western Securities Co.Ltd(002673) it is estimated that in 2025, the overall option rate of Tesla FSD is expected to increase to 50%, and the gross profit contribution to the whole vehicle is about 30%.
