Can new Tesla driver-assist incentive boost sales amid slow EV demand?
Tesla (TSLA) shares are trading higher after CEO Elon Musk announced the company will offer US customers a free trial of its driver-assist technology. The announcement comes at a time when consumers are less willing to spend on EVs after a first wave of adoption. Autopilot software was the subject of a recall of 2 million Tesla vehicles in December 2023.
Yahoo Finance anchors Akiko Fujita and Josh Lipton discuss whether the new incentives will cut it for EV-hesitant consumers.
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Editor’s Note: This article was written by Gabriel Roy.
Video Transcript
AKIKO FUJITA: Shares of Tesla are getting a boost in today's trade after CEO, Elon Musk announced the company will offer a free trial of its driver assist tech to US customers. Now if you'll recall, Josh this is the very technology that was part of the recall when you think about it. So look Tesla is in a very competitive space now.
They're also really trying to compete at a time when customers are saying, we don't necessarily want to shell out a lot of money for EVs because that first wave of adoption has already happened. They are trying to provide these incentives. The question is, is that really what's keeping drivers away from Tesla's? If in fact, they're not buying into it. You have to wonder the cost calculation is still a really big one even if you add additional incentives in there.
JOSH LIPTON: Yeah. Well, it is interesting [INAUDIBLE] hear Musk and that's we have Tesla Bulls who will come on the show. And they'll pound the table on autonomous driving and that it's always one of their foundational arguments. Why they're in the stock? Why they justify the valuation? Even though-- For sure recalls and also regulators of course carefully scrutinizing the software too.
AKIKO FUJITA: Yeah. I mean, you have to wonder, is this something that Tesla wants to tout at this moment, given what has played out on the regulation side of things but--
JOSH LIPTON: Including, by the way, a high profile trial about to start to involving a crash with the software.
