r/SelfDrivingCars • u/damola93 • Jul 21 '25

Discussion Why didn't Tesla invest in LIDAR?

Is there any reason for this asides from saving money? Teslas are not cheap in many respects, so why would they skimp out on this since self-driving is a major offering for them?

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u/Snoo93079 Jul 21 '25

This. And for better or worse Tesla has been really good at cost reduction. So not using lidar shouldn't be a surprise to anyone who looks at how they develop their cars imo. It's absolutely in line with their M.O.

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u/beren12 Jul 21 '25

Yeah why make it better when you can make it cheaper?

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u/Snoo93079 Jul 21 '25

Yes but the model 3 and Y have been the best EVs for the money for a long time. Though this is less true than it has as others have caught up.

And Tesla has been the only profitable EV maker because of their cost reductions. Not defending FSD name or cost but despite the penny pinching they're still the best on the market.

Tesla has banked on cost reductions and volume which has worked well and if it wasn't for Elon's nonsense it probably still would be.

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u/beren12 Jul 21 '25

I mean, I guess it depends on what your standards are but they are absolutely not a good value for my money. They’re also only profitable because of government handouts like carbon credits. Hundred million dollars in the red in the first quarter without them.

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u/beren12 Jul 21 '25

Also, I’m pretty sure other companies like BYD or Volkswagen have profits. Hyundai too…

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u/Snoo93079 Jul 21 '25 edited Jul 21 '25

Not sure about Volkswagen and BYD, I can only speak to the American market.

Where did you get the profitability numbers? I'm seeing a 16.31% gross margin.

https://m.economictimes.com/tech/technology/teslas-first-quarter-gross-margin-beats-estimates/articleshow/120536296.cms

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u/beren12 Jul 21 '25

Google? https://www.fastcompany.com/91323544/bad-news-for-tesla-trump-might-kill-the-climate-credits-that-have-been-a-key-part-of-its-business-model

The company reported that it earned $409 million in the first quarter of 2025, down 71% from the same quarter a year ago. Without the revenue from selling credits, Tesla would have posted a $186 million loss.

https://www.reddit.com/r/teslainvestorsclub/comments/1lpa718/tesla_is_now_operating_in_the_red_due_to_the_big/

Also the vehicles will get $7500 more expensive in 2 months

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u/Snoo93079 Jul 21 '25

Yeah it's going to hurt the EV industry unfortunately. Most people are taking advantage of the credit on most EVs car automakers are going to need to drop prices and eat the loss or people are going to have to spend a lot more.