The event comes ahead of Tesla's first- quarter earnings release on Wednesday, after the company recently issued disappointing sales and delivery numbers that hurt its stock price.
After a presentation detailing Tesla's custom FSD (full self-driving) chip and system, Musk proclaimed that "all Tesla cars being produced right now have everything necessary for full self-driving; all you have to do is improve the software." Musk said that attendees at the investor day would be able to test out Tesla cars with the improved software later in the day.
Musk also strongly criticized the Lidar distance-measuring systems that are the basis for most other companies' self-driving vehicle technologies, including that of Alphabet's (GOOGL) - Get Alphabet Inc. Class A Report Waymo, which many consider to be the leader in developing autonomous driving.
"Lidar is a fool's errand; anyone relying on it is doomed," Musk said, noting that the systems require many unnecessary cameras and that Tesla's system of visual recognition and learning is much more effective.
Musk also said he expects that Tesla would begin operating a fleet of self-driving cars to be used as on-demand taxis by sometime next year. The fleet would be supplied by leased cars that are returned by customers after their lease expires, as well as by dedicated vehicles built by Tesla.
Musk said he expects Tesla to be cash-flow neutral as the robo taxi fleet is being built up, and then cash-flow positive after the fleet is completed.
Musk also asserted that Tesla's FSD chip is the best chip that any company has ever created, despite the company never having designed a chip before.
Tesla's stock fell 3.9% to $262.75 on Monday, as video of a Tesla vehicle spontaneously exploding in a garage in Shanghai surfaced and an analyst downgraded the stock on signs of slackening demand as rivals enter the electric vehicle market.
Shares are down more than 20% year to date.
This is a developing story; please check for updates.