Tesla is gearing up for a significant expansion of its Full Self-Driving (FSD) technology, with plans to launch in Europe and China by early 2025, pending regulatory approval. This move comes alongside reports of a potential partnership between Tesla and Elon Musk's AI startup xAI, which could dramatically enhance the capabilities of FSD and other key Tesla initiatives.
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| Elon Musk contemplating Tesla's future at the US Capitol as the company prepares for a significant expansion of its Full Self-Driving technology |
Global FSD Rollout on the Horizon
Tesla announced via social media that its FSD feature is slated for an international debut in the first quarter of 2025, targeting the European and Chinese markets. However, the company emphasized that this timeline is contingent on obtaining necessary regulatory approvals. The news sparked investor interest, resulting in a 6% increase in Tesla's stock price.
It's important to note that despite its name, Full Self-Driving still requires an attentive human driver behind the wheel. The system is an advanced version of Tesla's Autopilot, offering enhanced driver assistance features rather than true autonomy.
xAI Partnership Could Supercharge Tesla's AI Efforts
According to a Wall Street Journal report, Elon Musk's xAI startup may play a crucial role in advancing Tesla's AI-driven projects. Sources familiar with the matter revealed that a proposal shown to investors outlines plans for Tesla to license xAI's AI models to enhance several key areas:
- Full Self-Driving (FSD) capabilities
- A Siri-like voice assistant
- The Optimus humanoid robot project
The potential partnership could involve a revenue-sharing agreement, with the split depending on the extent of xAI technology utilized. For FSD specifically, an even split has been discussed.
Implications for Tesla's Future
This collaboration, if realized, could significantly accelerate Tesla's AI development efforts. The company has already committed to spending $10 billion on AI this year, with autonomy seen as a cornerstone of its future strategy.
The integration of xAI's technology, particularly its large language model Grok, could provide Tesla with a competitive edge in the race towards true autonomous driving and advanced AI-powered features.
Upcoming FSD Enhancements
Tesla also revealed plans for near-term improvements to its FSD system:
- September 2024: Release of v12.5.2, promising a threefold improvement in miles between necessary human interventions
- October 2024: Addition of unpark, park, and reverse capabilities to FSD
As Tesla continues to push the boundaries of automotive AI, the potential xAI partnership and global FSD expansion underscore the company's commitment to maintaining its position at the forefront of electric and autonomous vehicle technology.