Here is the relevant transcript:
Ryan Brinkman - JPMorgan Securities LLC
Great. Thanks for taking my question. Just regarding the explanation in the shareholder letter that you experienced a little autopilot revenue, a little new revenue in 4Q, can you talk about what delayed the software updates into 1Q? Was it the switch from Mobileye in any way? And then talk about how the current capabilities of autopilot in 1Q in terms of performance and safety, how that's better than maybe what was offered previously?
Elon Reeve Musk - Tesla, Inc.
Yes, we had some challenges in the transition from Mobileye to Tesla software running on GPU. Our original plan was to have a migration strategy, where we have Mobileye and Tesla Vision operating at the same time to have kind of a smooth process, but Mobileye refused to do that. So, that poised (18:16) us to re-spin the board and caused unexpected delays where we had to basically (18:22) from the board and just kind of (18:26) Tesla Vision.
Safety is always our primary concern. So, really we could have released Tesla Vision and including (18:42) high speed, probably three months ago – I was driving at a high speed personally three months ago, but I think we want to just have an exhaustive testing process, vetting (18:57) process before enabling that throughout the fleet.
So, we've been edging our way up there gradually. Now, longitudinal control, the Traffic-Aware Cruise Control is at 80 miles an hour. And Autosteer is at 50 miles an hour, and I think we should be able to get, unless testing shows something different, we should be able to get them both to around the maybe 85 miles an hour next month and be at parity with Hardware 1 (19:36). And then obviously things will only improve from there. So, that's that.
Also interesting re lowered insurance costs because safer and fewer insurance losses:
Adam Michael Jonas - Morgan Stanley & Co. LLC
Thank you. Thank you. Just a follow-up. On insurance, if your cars prove to be as much as 90% safer than other cars on a per mile basis, as I think you've alluded as a reasonable target medium-term, and if insurance companies only offer your customers, say, like a piddling 5% discount versus a comparably priced car, would you consider offering a service or product like P&C insurance directly to Tesla owners from your own platform and your own stores? Thanks.
Elon Reeve Musk - Tesla, Inc.
Jon, do you want to take that?
Jonathan McNeill - Tesla, Inc.
Hey, Adam, it's Jon. We're actually currently doing that. And we've been doing it quietly. But in Asia in particular, where we started this, now the majority of Tesla cars are sold with an insurance product that is customized to Tesla. It takes into account not only this autopilot safety features, but also the maintenance cost of the car. So, it's our vision in the future that we'll be able to offer a single price for the car, maintenance, and insurance, in a really compelling offering for the consumer. And we're currently doing that today.
Elon Reeve Musk - Tesla, Inc.
Yes, and this is not to the exclusion of insurance providers, but I mean, if we find that insurance providers are not matching the insurance proportionate to the rest of the car then, if we need to, we will in-source (7:12) it, but I think we'll find that insurance providers do adjust the insurance costs proportionate to the risk of a Tesla.