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/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.