
Tesla Goes on Autopilot -- but Don't Take Your Hands Off the Wheel
NEW YORK (TheStreet) -- Tesla Motors (TSLA) - Get Report said it will release software that confers autonomous driving features to Model S sedans it has manufactured in the past year. The maker of battery-powered luxury cars will "push" the software wirelessly to owners' vehicles.
Tesla's "autopilot," which had been equipped with sensors for advanced safety features such as adaptive cruise control, will allow a car to change lanes safely, the company said, an auto industry first. Daimler (DDAIF) , maker of Mercedes-Benz, was the first to offer "traffic jam assist," which guides a car in low-speed traffic with minimal driver intervention.
To comply with regulations, the cars still will require the driver's attention. "We tell drivers to keep their hands on the wheel just in case, to exercise caution in the beginning," Elon Musk, Tesla CEO, said at a press event. "Over time, long term, you won't have to keep your hands on the wheel -- we explicitly describe this as beta."
Developments across the auto industry during the last year suggest that autonomous or driverless vehicles would enter commercial use much quicker than earlier forecasts, perhaps within five years. The technology is being driven by new software and falling price of hardware components, such as sensors.
Tesla's stock, one of the mostly hotly debated -- and shorted -- in the market, has had a tough month, losing about 15% of its value, compared with the Nasdaq that had declined about 1%. Last week, short-seller Jim Chanos said the automaker "has a long way to go" to sell the millions of cars reflected in its current valuation. Chanos has never said publicly that he's shorting Tesla.
On Wednesday, a non-profit group working to reduce fossil fuel usage created an Autonomous Vehicle Task Force in Washington to facilitate the technology. The premise of the group's work is that autonomous driving can cut down on wasted fuel by reducing traffic congestion caused by accidents and by helping cars to travel closer to one another safely.
Google (GOOG) - Get Report , which is testing autonomous prototypes -- some without steering wheels or other controls -- has hinted that its technology could be commercial in about four years. Google has said it intends to collaborate with automakers rather than build vehicles on its own.
Last month, Tesla debuted its Model X SUV, based on the Model S. The cost for the fanciest version is about $133,000.
"This is an important step for Tesla to show it's not a one-trick show when it comes to developing a car from start to finish," Ben Kallo, an analyst with Robert W. Baird & Co., told Bloomberg. "It will also be great for brand awareness to have two cars on the road."
A Tesla spokesman said the company's approach to creating a "connected car" with an operating system than can be updated sets it apart from other automakers.
"Carmakers need to think of their cars as connected devices, that the way a car should operate, like your cell phone or laptop so you can do improvements over the air," Musk said. "It's important for safety and functionality that carmakers move to a connected philosophy ... It's kind of odd to have a computing device that's not connected."
Doron Levin is host of "In the Driver Seat" on SiriusXM, Insight channel 121, on Saturday at noon, repeated at 9 a.m. on Sunday.
The writer has no financial interest in the aforementioned companies.








