Randall (Mr. Exponentials)

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So I think what you are trying to explain and calculate : 1) Tesla price cuts are helping Tesla to sell more cars so the installed base upon which they can sell FSD will increase. 2) these same price cuts will also help increase the uptake percentage of FSD. I have been playing around with this as well. There are 3 levers that will increase net profit of Tesla : 1) installed base 2) uptake percentage FSD 3) price of FSD The margin they make on FSD is bigger than the margin they make on the hardware per unit . Tesla is trying to find the 🔑 to the formula total FSD margin ( Units units * uptake percentage * price of FSD ) . + They are experimenting to solve the equation : A) Units installed base : 6 million units vs 10 million B) uptake percentage : 10% vs 50 % C) price of FSD : 15.000 vs 25.000 or 200 p/m vs 300 p/m From my calculations Tesla: Total Margin from FSD > margin hardware as of 2026 This is the playbook of a tech company . The car industry will become an tech industry. The new tech mindset will see the car not as a product to sell but as an installed base of millions to build upon to creating billions of opportunities to sell software related services. Cars will become robots on wheels connected to the internet and business models are gong to be software related. #Tesla’s Net profit margin per unit will increase because they will first start to upsell FSD, insurance and energy products and in the future even entertainment services . With this profits they are able to subsidize the hardware business model and therefore lowering the new price of the hardware while increasing profits on the services they will sell.