On September 26, Tesla (TSLA) rolled out its version 10 software update, which customers were eagerly awaiting. CEO Elon Musk tweeted yesterday, “Tesla V10.0 just started rolling out to all US Tesla owners with FSD option & ‘advanced download’ selected in vehicle software settings.” This is the company’s biggest software update ever. The update will happen over the air. Tesla’s blog highlighted the main features available through this update.
Features under Tesla’s V10 software update
This new update will bring entertainment options such as Spotify (SPOT) premium, Netflix (NFLX), Hulu, and YouTube. Another interesting feature included in the update is in-car karaoke, or “Caraoke.” According to Tesla’s blog, it “lets you sing your heart out with friends on a road trip – or by yourself.”
The automaker has also added “I’m Feeling Lucky” for points of interest and “I’m Feeling Hungry” for food locations. Regarding this feature, the blog adds, “We’ve also improved our maps so that your search results will be sorted based on distance to each destination.”
Tesla’s Smart Summon feature
While all the above-mentioned features aroused customer curiosity, the Smart Summon feature was the most awaited. Under this feature, customers with full self-driving capability or enhanced autopilot can “enable their car to navigate a parking lot and come to them or their destination of choice, as long as their car is within their line of sight.” The company, however, cautioned customers that they “must remain responsible for the car and monitor it and its surroundings at all times.”
These updates will first be brought to Tesla owners who paid for the full self-driving option. Musk stated in a tweet that a wider release will follow in “about a week.”
Musk: Owning other cars would feel like owning a horse
In April, according to CNBC, Musk mentioned during the company’s Autonomy Investor Day that owning cars other than Tesla “would be like owning a horse in three years.” He added, “If you buy a car that does not have the hardware for full self-driving, it is like buying a horse.” Musk further stated, “And the only car that has the hardware for full self-driving is a Tesla.”
Over-the-air updates and the edge they provide
Musk made this comment in the context of the over-the-air updates that would be available to Tesla owners, such as its latest V10 update. While built-in network connectivity was also available before Tesla, the company has taken it to a totally different level. The automaker’s built-in software enables it to adjust car performance through over-the-air updates. Tesla’s legacy peers Ford (F), General Motors (GM), and Fiat Chrysler (FCAU) are also working on making their cars well connected. Tesla, however, is leading its peers in this space. Other companies are mostly offering basic updates, such as map navigation, to their customers.
Tesla cars: Appreciating assets?
Apart from offering a better customer experience, which provides Tesla with an edge, these updates also help it avoid recall costs. Some of the issues with software can be fixed by the company through over-the-air updates. Musk has gone to the extent of saying that Tesla cars are now “appreciating assets,” as reported by Electrek. This, he said, is due to their self-driving capability.
While the prices of traditional cars decline with time, due to these up-to-date software updates, Tesla cars are expected to increase in value over time. Telsa mentioned in its blog yesterday, “We’re raising the bar for what people have come to expect from their cars.”
Musk’s leaked email: Push for 100,000 deliveries in the third quarter
After these upgrades were announced yesterday, Tesla stock rose more than 6%. Other important news for the company came in the form of a leaked email from Musk, as reported by Electrek. Musk is aiming for 100,000 deliveries in the third quarter. If the company is able to deliver on this target, it will top its previous record of 95,200 deliveries in the second quarter. You can read more about this in Musk’s Leaked Email: Tesla Bears Reel on Q3 Hopes.
China progress is noteworthy too
The Chinese media also reported yesterday that Tesla had rolled out its first Model 3 from its factory there. The startup of its China Gigafactory could be one of the major catalysts for the company on its path to sustainable profitability. Read Tesla Gigafactory 3: A Step Closer to Model 3 Production for an update.
Tesla’s stock performance
Tesla stock, however, has been lagging its peers and the broader markets year-to-date. As of September 26, Tesla has fallen 27% this year. In comparison, the S&P 500 (SPY) and the Nasdaq Composite Index (QQQ) have risen 18.8% and 22.8%, respectively. Ford (F) and General Motors (GM) have risen 19.5% and 12.4%, respectively. The only major Tesla rival that has performed worse than Tesla is China’s EV maker NIO (NIO). NIO stock has fallen about 70% so far this year due to profitability concerns and its huge cash burn.