BEGIN ARTICLE PREVIEW:
Tesla has started to indicate that it is going to expand its software offering, including a subscription to its full self-driving package, and analysts are starting to consider this new revenue stream as a massive opportunity.
Over the last year, Tesla has made several moves to start generating revenue from software.
The automaker started charging $10 a month for its ‘premium connectivity’ features.
Tesla also started selling software features through its mobile app.
But the most important move Tesla is making to create revenue from software is selling its Full Self-Driving Package and recently, Tesla even announced that it will offer its Full Self-Driving Package as a subscription service, which could be considered software-as-a-service (SaaS).
CEO Elon Musk said during Tesla’s last earnings call:
“I think we will offer Full Self-Driving as a subscription service, but it will be probably towards the end of this year.”
Morgan Stanley has been exploring the impact of the Full Self-Driving Package on Tesla’s business model in a note to clients last week.
The firm wrote:
“Tesla is the only company today, to the best of our knowledge, that is fully monetizing its autonomous driving assets at scale. This can potentially provide a …
END ARTICLE PREVIEW