Gerstner models Tesla FSD penetration rising from 7% to 20% at $500 monthly versus current $1000.
“if you assume that you have, you know, penetration, you know, go from 7% to 20%, give it to everybody for free, they drive around for a month, they're like, wow, this really does feel like a human driver. I'm happy to pay $500 a month.”
Gerstner models Tesla FSD penetration rising from 7% to 20% at $500 monthly maintaining contribution margin despite lower price.
“I'm happy to pay $500 a month. You know, if you get to, you know, 20% penetration, then your contribution margin at Tesla, right, is about the same, even though you're charging half as much.”
Gerstner estimates robotaxi revenue per car drops from $140K to $100K due to increased supply lowering prices despite more rides.
“When you do that in self driving, we think it goes down to about a 100,000. Why? Well, you have actually more rides in the self driven car.”