Benzinga - by Shanthi Rexaline, Benzinga Editor.
Tesla, Inc.‘s (NASDAQ:TSLA) full-self driving software is in advanced beta testing and analysts have high hopes for the autonomous driving technology as a long-term driver of the stock. On Sunday, a senior Tesla executive responded to a social media user’s grievance about an FSD offer that was not extended to Canadian users.
What Happened: An X user reshared Elon Musk’s comments on the same platform regarding a one-month free trial of FSD. “All US cars that are capable of FSD will be enabled for a one-month trial this week,” Musk had said. Tagging Tesla’s Vice President, Public Policy and Business Development, Rohan Patel, the user said, “Really hoping @rohanspatel can put in a good word for us here…”
The user also shared a May 2023 post by Musk, in which the billionaire said once the FSD is safe and smooth, it will be rolled out for a free month trial for all cars in North America before extending to the rest of the world.
Once FSD is super smooth (not just safe), we will roll out a free month trial for all cars in North America.Then extend to rest of world after we ensure it works well on local roads and regulators approve it in that country.
— Elon Musk (@elonmusk) May 8, 2023
Patel replied to the plea and assured the user of parity of treatment between the two North American countries. “Going forward Canada will be no different than the US, unless there is a regulatory or technical issue,” he said.
The executive also said the Cybertruck falls into the regulatory case but assured that Tesla is closing in on a solution with Transport Canada. “We are just playing a bit of catch-up, and aren't far from being able to enable a number of much-anticipated updates for Canada,” Patel said.
“Sincerely apologies for the delay, but I can assure you we've heard you loud and clear.”
Patel also clarified that Canadian regulators have been “entirely reasonable” on a wide variety of issues. “And as you guys know, I have no problem calling out regulators who are irrational or not acting in the public interest,” he said.
Delving into the regulatory issues in Canada, the executive said, “Provincial law in Canada is generally quite independent of federal law, so on some issues, this can make things a bit tricky.”
Why It’s Important: As the core auto business of Tesla suffers amid slowing EV adoption and competition, analysts have turned their attention to other revenue avenues and promising ancillary businesses. FSD subscription will likely bring in a high-margin recurring revenue stream and is therefore seen as a promising opportunity.
That said, doubt regarding FSD’s ability to hit a higher level of automation has tempered expectations about its near-term success.
Tesla has now warmed to ads on a limited scale through social media platforms. Key Tesla executives have also taken upon themselves the onus of responding to user queries — a welcome development as a lack of communication and transparency is seen as one of the main reasons for the recent stock price decline.
Tesla ended Monday’s session up 1.05% at $172.63, according to Benzinga Pro data.
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