On March 22, 2022, Musk handed over a Model Y car to a customer at the opening ceremony of the new Tesla electric vehicle Gigafactory in Grünheide, Germany.
Patrick Puller | Pool | Reuters
Tesla Chief Executive Officer Musk is now asking employees to install and show customers how to use the latest version of the company’s advanced driver-assistance system, marketed as “FSD,” or Fully Self-Driving, before completing vehicle deliveries in North America.
“Going forward, North America must install and launch FSD V12.3.1 and allow customers to take short test drives before delivering cars,” Musk wrote in an email to employees on Monday. “Few people really realize how effective (supervised) FSD actually is. I know it slows down the delivery process, but it’s still a hard requirement.”
Musk’s email was first reported by Bloomberg and seen by CNBC.
While all new Tesla vehicles come with a standard driver assistance system called Autopilot, the company’s FSD option costs $199 per month for most customers in North America.
Tesla’s FSD system does not turn the car into a self-driving car. According to the Tesla owner’s manual, drivers must keep their attention on the road and be ready to steer or brake when using FSD or FSD Beta.
Owners of FSD vehicles also have access to the FSD Beta system, which allows them to test and help debug updated driver assistance features on public roads.
Under pressure from the National Highway Traffic Safety Administration, Tesla has implemented voluntary recalls in recent years to improve the safety of its Autopilot, FSD and FSD Beta systems.
Tesla did not immediately respond to a request for comment.
In a separate memo distributed to Tesla employees, the company asked salaried and hourly employees to sign up for extra shifts to deliver cars to customers in the final days of the first quarter.
“Join us and make our customers happy when they receive their order!” the memo said. “While our production capacity enables a more even distribution of vehicle deliveries throughout the quarter, we still need your support to ship, prepare and drive vehicles to customers by the end of the first quarter.”
According to the memo seen by CNBC, salaried Tesla employees will not receive additional pay if they work a delivery shift, but hourly workers are eligible for additional compensation and typically have their hours billed to sales and delivery cost centers .
Tesla is under pressure to avoid an annual decline in first-quarter deliveries. At least one independent researcher named “Troy Teslike” predicts Tesla will deliver only 407,000 vehicles this quarter, down from 422,875 vehicles a year ago.
Tesla shares have fallen about 30% so far this year, closing at $172.63 on Monday.
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