Part 5/9:
Wang asserts that the revenue generated from these advancements could be staggering. If Tesla can establish that a significant portion of new vehicle production is equipped with FSD technology, the potential profits could elevate significantly. In 2025, if 50% of new cars are capable of operating as Robotaxis or equipped with FSD, analysts forecast revenue to be around $16 billion. This figure equates to $2 billion in annual recurring revenue when considering different subscription models.
As global regulatory landscapes favor autonomous driving, particularly in cities across the U.S. and China, Tesla’s ability to flood the market with Robotaxi-capable vehicles could transform its revenue model from sales-driven to highly profitable subscription-based models.