Elon Musk delivers a Model Y car to a customer during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022.
Patrick Pleul | Swimming pool | Via Reuters
Tesla CEO Elon Musk now requires employees to install and show customers how to use the latest version of the company’s premium driver assistance system, marketed as “FSD” or Full Self-Driving functionality, before completing the delivery of a vehicle in North America.
“From now on, in North America it will be mandatory to install and activate FSD V12.3.1 and take customers on a short test drive before delivering the car,” Musk wrote in an email to staff on Monday. “Almost no one realizes how well FSD (supervised) actually works. I know this will slow down the delivery process, but it’s still a difficult requirement.”
Bloomberg first reported Musk’s email, which was also seen by CNBC.
While all new Tesla vehicles come with a standard driver-assist system installed called Autopilot, the company’s FSD option costs $199 per month for most customers in North America.
Tesla’s FSD system does not turn cars into autonomous vehicles. According to Tesla owners’ manuals, drivers must remain alert to the road and ready to steer or brake at all times when using FSD or FSD Beta.
Owners with FSD can also access the FSD Beta system, which allows them to test and help debug new driver assistance features on public roads.
Under pressure from the National Highway Traffic Safety Administration, Tesla has implemented voluntary recalls in recent years to improve the safety of its Autopilot, FSD and FSD Beta systems.
Tesla did not immediately respond to a request for comment.
In a separate memo distributed to Tesla staff, the company is asking salaried and hourly workers to sign up for additional shifts to deliver cars to customers in the final days of the first quarter.
“Join us to delight customers as they receive their delivery!” the memo said. “While our manufacturing capacity allows us to spread vehicle deliveries more evenly throughout the quarter, we still need your support to move, prepare and drive vehicles to customers during the end of the first quarter.”
Salaried Tesla employees do not receive extra pay if they work delivery shifts, but hourly employees are entitled to additional compensation, typically by billing their hours to a sales and delivery cost center, according to the memo seen by CNBC.
Tesla is under pressure to avoid a year-over-year delivery decline for the first quarter. At least one independent researcher, posting as “Troy Teslike,” expects Tesla to report just 407,000 deliveries for the quarter, which would mark a decline from 422,875 a year ago.
Tesla shares have fallen about 30% this year, closing Monday at $172.63.
CLOCK: Analysts expect Tesla’s multiple to continue falling
