In order to meet Q1 2022 production targets, Tesla removed an Infineon chip from the steering racks of all cars made in China between Q4 2021 and at least Q1 2023.
"Huawei sent 24 employees out to test drive Teslas in California during the free trial period Tesla gave for FSD. Their response involved lots of laughter."
I'm struck by the comment that the big FSD news wasn't even reported in China. This is a frequent occurrence as all news in China serves a political purpose. The fact that it was leaked or given to the Wall Street journal and not reported domestically tells me the whole thing was done for foreign consumption. One possibility -- because the CCP is capable of being very stupid but they also have extraordinarily good information and lots of very very smart people - - they may be as cognizant of this Titanic nearing the iceberg as you, but don't want to see one of their two poster children for kumbaya with foreign business turn out to be Enron. At least not yet. So they were just throwing him a bone...
While I have no proof, my gut feeling is that Musk met with Li Qiang in order to get some concessions from the government if Tesla's revenues in China go below $10bn or if he has to employ less than 6,000 people as originally agreed.
I don't think Musk is in position to get any "concession" from the chinese government. He is in fact at the mercy of China. On the 24th of may, he changed his position (that is a 180° one) on US tariffs of chinese ev imports (stating that it "distorts the market and inhibit trade" which is hilarious). I don't see either Biden or Trump suppressing this tariffs (well at least Biden). Still, it shows how much Musk is desperate to pump the stock. China is playing the long game (the Shangai factory was as much the biggest present to Tesla that his kiss of death), and Musk is behaving as is he has always done.
Knowing Elon and Tesla, they will simply sell FSD to anybody who wants it with a single chip and refuse to supply them their 2nd chip. They are above the law and they know it and they act on it.
I am not sure this is the massive liability that you think it is.
Tesla could offer to add the steering chip to any cars that have FSD, or whose owners purchase or subscribe to FSD, they don't have to retrofit the chip to all cars.
Tesla can't "offer" to install the chip needed for Level 3 autonomy. These chips are in a PCB that's glued onto the rack. Upgrading it to Level 3 autonomy would involve replacing the entire steering rack, which would cost them around $2,500 per car.
If they get to Level 3 FSD, the center screen will give them a notice to go in to get the car fixed. That's how they built them. I'd imagine you'd have to fix all the cars in case someone decides to subscribe for a while to see what it's like to drive without your hands on the wheel.
No matter what % of those cars need a fix, Tesla clearly committed fraud by shipping them without the proper equipment.
"Huawei sent 24 employees out to test drive Teslas in California during the free trial period Tesla gave for FSD. Their response involved lots of laughter."
My favorite part of your report.
Cheers.
Nicely done. I can feel the seething anger at the fraud coming through.
The "Golden Age of Fraud" indeed.
But hey...stonks go up.
I'm struck by the comment that the big FSD news wasn't even reported in China. This is a frequent occurrence as all news in China serves a political purpose. The fact that it was leaked or given to the Wall Street journal and not reported domestically tells me the whole thing was done for foreign consumption. One possibility -- because the CCP is capable of being very stupid but they also have extraordinarily good information and lots of very very smart people - - they may be as cognizant of this Titanic nearing the iceberg as you, but don't want to see one of their two poster children for kumbaya with foreign business turn out to be Enron. At least not yet. So they were just throwing him a bone...
While I have no proof, my gut feeling is that Musk met with Li Qiang in order to get some concessions from the government if Tesla's revenues in China go below $10bn or if he has to employ less than 6,000 people as originally agreed.
I don't think Musk is in position to get any "concession" from the chinese government. He is in fact at the mercy of China. On the 24th of may, he changed his position (that is a 180° one) on US tariffs of chinese ev imports (stating that it "distorts the market and inhibit trade" which is hilarious). I don't see either Biden or Trump suppressing this tariffs (well at least Biden). Still, it shows how much Musk is desperate to pump the stock. China is playing the long game (the Shangai factory was as much the biggest present to Tesla that his kiss of death), and Musk is behaving as is he has always done.
Or they will supply the 2nd chip only when the customer buys FSD and insists on the 2nd chip (only Motorhead readers who also own teslas)
Knowing Elon and Tesla, they will simply sell FSD to anybody who wants it with a single chip and refuse to supply them their 2nd chip. They are above the law and they know it and they act on it.
They literally need to replace the steering racks in those 1.2 million cars they sold without the 2nd (redundant) chip in them.
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I'm going to buy a 4x4 that consumes like a tunnel boring machine. ;)
You can lead a horse to water but…….Falling EV sales are upending Banker Climate Strategies 🤣 https://www.bloomberg.com/news/articles/2024-05-22/falling-ev-sales-are-upending-banker-climate-strategies
I am not sure this is the massive liability that you think it is.
Tesla could offer to add the steering chip to any cars that have FSD, or whose owners purchase or subscribe to FSD, they don't have to retrofit the chip to all cars.
Tesla can't "offer" to install the chip needed for Level 3 autonomy. These chips are in a PCB that's glued onto the rack. Upgrading it to Level 3 autonomy would involve replacing the entire steering rack, which would cost them around $2,500 per car.
And yet it's still not a massive liability if they simply ignore the law and never install the 2nd chip.
But they only need to do it for cars that have FSD, they don't need to do it for every car.
They could limit the upgrade to those who bought FSD and those who buy a subscription to FSD.
If they get to Level 3 FSD, the center screen will give them a notice to go in to get the car fixed. That's how they built them. I'd imagine you'd have to fix all the cars in case someone decides to subscribe for a while to see what it's like to drive without your hands on the wheel.
No matter what % of those cars need a fix, Tesla clearly committed fraud by shipping them without the proper equipment.