Tesla Is Focusing On Developing Driverless Cars


Tesla is taking a different approach to developing driverless cars compared to competitors.

Currently, other automakers focus on laser-based systems that allow for a car to self-drive. However, Tesla has taken a different route and has instead focused on a visually based method.

Electric cars received major attention when it first came on the scene for auto-manufacturers. However, soon after, driverless cars also gained a similar amount of attention. Elon Musk then decided to focus on developing the technology needed to roll out driverless cars.

However, some are skeptical at how effective this technology has been. It has been described as an advanced version of cruise control, requiring many technological advancements before it can be described as driverless technology.

Other auto manufacturers have also focused on developing driverless cars. General Motors has built a $20 billion standalone arm of its company that focuses on that very endeavor.

Additionally, Tesla has been experiencing recent success and has improved its valuation in record time. Four months ago, it was valued at below $50 billion and has now achieved a $100 billion valuation.

Investors are wary that focusing on driverless technology might be a media stunt and that failure to deliver on driverless cars eventually might harm the overall valuation of the company.

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Economics, Finance and Investing