Tesla beat earnings thanks to $300 million from 'full self driving,' a product that still doesn't live up to its name

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OPINION: Tesla beat Wall Street’s target for adjusted earnings, but the bomb beneath the surface could be Elon Musk’s exaggerations of the road to autonomy and a beta software that still doesn’t do what it says it does.

More than six years after beginning to sell “full self driving” to consumers, Tesla Inc. beat on fourth-quarter earnings thanks to recognizing more than $300 million from sales of the software, which still doesn’t do what its name suggests.

Those analysts were not focused, though, on how Tesla beat on earnings — with roughly 9 cents a share coming from recognition of $324 million in deferred revenue for “FSD,” beta software for which Tesla charges $15,000 per vehicle. The company holds back on recognizing the full value of what customers pay for the software, claiming the revenue — which arrives basically as pure, 100% margin profit in the quarter — as it releases upgrades over time.

Wednesday’s windfall should have investors questioning exactly how Tesla is recognizing the FSD software.

 

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OPINION: 99.9% of people who own Tesla stock and Tesla products do not do so based on or because of autonomous anything. It’s a complete and utter miss if you think that has anything to do with Tesla’s success.

Lmao corp. media bagging on Elon. What's new.

Just another lazy BS hit piece

I have a Tesla with FSD and I think it’s awesome. Keeps getting better. Go Elon!!

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