SaaS is more than just a fancy title. It certainly is the basis of many companies. Is the automotive industry moving in this direction?
In this video I discuss how Tesla's revenues from Saas, even without Full Self Driving, could be enormous. Of course, this is going to require a lot more than 5 million cars in their total fleet.
▶️ 3Speak
While I certainly see the appeal of software as a service from a vendor point of view, personally, I will avoid purchasing a vehicle the requires me to pay a subscription fee for as long as I possibly can. Full self driving may eventually make it worthwhile (if it's cheap enough) but even that only appeals to me if we reach a point where I can just sit in the passenger seat or back seat (if I so choose) while the car takes me where I want.
Well even if that was technologically available tomorrow, it is not going to happen for years due to regulators. Those who believe self driving is just around the corner dont understand how the process works.
Hell the regulators havent even developed the metrics of how they are going to judge whether they approve it or not.
I think SaaS for vehicles might backfire. I have seen some posts where people are saying that a car purchase is already a big amount, not getting the full feature, or having to pay for it like a subscription is too much. Something similar is already existing in the video game industry. Microtransactions and DLCs in games make people move away from buying those games.
Is the automotive industry moving in this direction?
yup it probably is o.o im waiting for it. full self driving will be crazy just wonder how it would go about if theres problems. O.O would tesla be liable if the self driving car crashed or got into an accident
Summary:
In this video, the speaker discusses the significance of software as a service in the automotive industry, particularly focusing on Tesla. He emphasizes the importance of autonomous driving technology and how Tesla's approach to developing its own software gives it a competitive advantage over legacy auto companies. The speaker highlights the potential for Tesla to generate substantial profits through software services like infotainment packages for its vehicles. He also speculates on the possibility of Tesla offering a range of services bundled in a subscription package similar to Amazon Prime.
Detailed Article:
The video opens with the speaker addressing the topic of software as a service and its relevance to Tesla's operations in the automotive industry. He points out that traditional automotive industry analysts tend to overlook this aspect, which he believes will pose a significant challenge for legacy auto companies. The speaker highlights the advancements in autonomous driving technology, especially Tesla's progress in this arena compared to other companies working on similar projects for vehicles like tractors, semis, and automobiles.
He draws attention to the importance of breakthroughs in autonomous driving technology and mentions reports suggesting similarities between Tesla's deployment of certain processes with OpenAI and advancements in chatbot technology. The speaker speculates that Tesla might be leading in this area, emphasizing the potential implications for companies that are lagging behind and may need to license such technology in the future.
The discussion then shifts to the concept of cars as computers on wheels, with a focus on Tesla's unique position due to its in-house software development capabilities. A comparison is made with legacy auto companies like Volkswagen, Ford, and General Motors, highlighting their past reliance on outsourcing software development and their subsequent efforts to catch up in this regard. The speaker emphasizes the talent gap between Tesla and these legacy companies, suggesting that top software professionals prefer working for tech giants like Tesla, SpaceX, NVIDIA, Google, and Apple.
The speaker delves into the revenue potential of software services for Tesla, particularly through infotainment packages that could generate significant profits with a large user base. He calculates the possible earnings from such services, using hypothetical figures like $10 per month per vehicle for 10 million cars. This analysis leads to the conclusion that Tesla could eventually earn substantial monthly profits solely from software services.
Furthermore, the speaker speculates on the expansion of Tesla's software services beyond infotainment, mentioning the energy sector as another potential source of revenue. He imagines a scenario where Tesla offers a suite of services bundled in subscription packages akin to Amazon Prime, leveraging the captive audience of Tesla car owners and the company's control over its platform to drive success in software-based services.
In conclusion, the speaker emphasizes the transformative potential of software as a service for Tesla and how it could revolutionize the automotive industry's revenue streams. He leaves the audience with a thought-provoking reflection on Tesla's future prospects in generating substantial profits through software services.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.