Elon Musk liked a post on X that wrapped up a difficult day for Tesla. The post read: Elon re-enters wartime CEO mode. Musk also changed his X profile picture back to the Devil’s Champion costume he wore in 2022 for Halloween. The wartime post by Tesla insider @ChrisZheng001 comes after the company announced a major reduction to its global workforce by over 10%. This decision affects roughly 14,000 employees across various levels and departments. Musk also said goodbye to several long-term, key executives.
Musk’s Wartime Shift: A Strategic Necessity
The concept of a "wartime CEO" versus a "peacetime CEO" originates from Ben Horowitz, a renowned venture capitalist and co-founder of Andreessen Horowitz. In his book, "The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers," Horowitz describes a wartime CEO as a leader who operates under conditions of extreme stress and competition, making tough, fast decisions necessary for survival. This contrasts with a peacetime CEO focusing on expansion, culture, and development during more stable periods.
About every 5 years, we need to reorganize and streamline the company for the next phase of growth
Musk's recent re-adoption of the wartime CEO posture is a strategic maneuver as Tesla faces significant internal and external challenges. With the electric vehicle market becoming increasingly competitive and Tesla initiating major projects like the Robotaxi, Musk’s leadership style has aligned with these high-stakes circumstances.
Executive Departures, Overhauling Workforce
The company plans to overhaul its workforce, reducing its size by over 10 percent to eliminate redundancy and enhance productivity. Simultaneously, Tesla is pushing forward with significant technological innovations that promise to redefine its future. Such intense transformation and challenge periods necessitate a wartime approach, where decisiveness and direct action are paramount.
The layoffs coincide with the departure of several high-profile executives, including Drew Baglino, Senior Vice President of Powertrain and Energy, who had been with Tesla for 18 years, and Rohan Patel, Vice President of Public Policy and Business Development and an eight-year veteran of Tesla. Both executives have decided to leave the company to focus on personal priorities and have no immediate plans for future engagements.
The Role of a Wartime CEO at Tesla
Musk focuses sharply on navigating Tesla through these turbulent times as a wartime CEO. This includes making hard decisions on layoffs, streamlining operations, and prioritizing critical projects over others. Musk noted in his layoff announcement to staff via email.
There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle.
However, adopting a wartime mentality may impact Tesla's corporate culture, potentially leading to a more hierarchical and less collaborative environment in the short term. Musk is also aware of that and addressed it in the same email, stating: For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy, and artificial intelligence. As we prepare the company for the next growth phase, your resolve will make a huge difference in getting us there.
Conclusion: Preparing for Tesla’s Next Big Leap
As Tesla continues under Musk’s wartime leadership, the emphasis is on rapid adaptation and the successful rollout of new technologies. The company's ability to manage these changes effectively and maintain its competitive edge in the electric vehicle market will be crucial. The ultimate goal of this wartime approach is to ensure that Tesla not only survives the current challenges but emerges stronger and more innovative, ready to lead the next phase of growth in the automotive and energy sectors.
This shift back to wartime CEO mode is a critical strategy for Musk and Tesla. It signals a period of intense focus and strategic recalibration aimed at securing Tesla’s position as a leader in the global push for sustainable transport and energy solutions.
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On Sunday, Tesla started rolling out Full Self-Driving (Supervised) V12.3.6, the latest version of its FSD software. This update includes the highly anticipated new Autopark and High Fidelity Park Assist feature for additional vehicles. FSD v12.3.6 replaces v12.3.5 which had only been rolled out to a small portion of the fleet.
The new Autopark (tap to park) and High Fidelity Park Assist features are now available for vehicles with ultrasonic sensors (USS). Since October 2022, all Model 3 and Model Y vehicles no longer include ultrasonic sensors, instead relying solely on Tesla Vision to provide Autopilot, Park Assist, and Autopark features. However, the vision-based Autopark has been limited to the U.S. and Canada so far.
New Autopark
When driving at low speed, the new Autopark highlights potential parking spaces allowing the driver to pick their preferred spot. Tesla vehicles with ultrasonic sensors (USS) can now take advantage of the new Autopark feature, which is a significant improvement over the previous iteration.
Although the new Autopark feature is expanding to vehicles with USS, it appears to still be geographically limited to the U.S. and Canada. We expect Tesla to continue the feedback loop and release the feature in Europe and other regions in a future update.
Vehicles without USS outside of North America have never had Autopark of any form since they don’t support the older Autopark version that relies on USS and have yet to receive this latest revision of the feature.
For vehicles with the Intel-based infotainment unit, the visuals will look like the video below, where it doesn’t display a 3D environment of the vehicle’s surroundings. Instead, the visualization just highlights parking spaces available. However, the limitation for Intel vehicles is just in the visualization itself, the vehicle is just as aware of its surroundings as vehicles that display 3D renderings of objects on the screen.
With Tesla update 2024.3.25 (FSD v12.3.6), Tesla is also releasing High Fidelity Park Assist features to vehicles with ultrasonic sensors. However, as initially suspected, it’s limited to vehicles with the most recent infotainment processor that includes the Ryzen chip (MCU 3). Unfortunately, Intel Atom based vehicles don’t include the 3D visuals of High Fidelity Park Assist.
The feature provides drivers with a 360-degree 3D reconstruction of their vehicles’ surroundings while parking while traveling at low speeds. It even accurately displays lane markers in parking lots helping drivers visualize the environment around them when parking. The feature was added as a late addition to Tesla’s 2023 holiday update. However, at the time, it was limited to vehicles without ultrasonic sensors (USS).
For vehicles that have ultrasonic sensors, users will have a choice to either continue using their vehicle with USS sensors that display exact distances to objects or use the new High Fidelity Park Assist feature and forego the display of distances.
We were hoping that when Tesla finally released HiFi Park Assist to vehicles with USS, it would merge the two features and display the updated visuals with distance measurements, however, that is not the case in this update.
For owners with USS, the new Park Assist option is located under Controls > Autopilot and allows you to choose between “Standard” or “Tesla Vision.” Tesla Vision being the new HiFi Park Assist and Standard representing the USS version with arcs and measurements.
Tesla’s director of Autopilot, Ashok Elluswamy had previously set expectations and stated that HiFi Park Assist would “eventually” go to vehicles with ultrasonic sensors back in December 2023. The new Park Assist feature is available in various regions around the world, including North America and most of Europe.
Tesla continues to double down on vision and Musk revealed that it's becoming “very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy”.
Tesla has started offering Enhanced Autopilot (EAP) in China via a subscription starting at 699 yuan per month — equivalent to about $98.5 USD. It’s the first time Tesla owners in the country will have access to features such as auto lane change, Autopark, Smart Summon, and others.
It’s not clear whether Tesla will begin to offer EAP as a subscription in other regions as well.
The move is seen as the first step towards the expansion of Tesla’s full self driving to China as other markets outside North America wait for the arrival of the FSD software. Yesterday, Tesla chief executive Elon Musk said the version 12 is “ready for supervised FSD in LHD countries” while RHD countries such as Australia, UK or Japan “will take a bit longer”.
FSD in China
China giant Baidu announced last Monday that it will provide all Tesla vehicles in China its latest version of Baidu Maps starting in May.
This week, Tesla celebrated its 10th anniversary in the Chinese Market where it has a total of 1.7 million owners — Tesla’s second largest market. Elon Musk recently tweeted that Tesla may soon offer full self-driving in China by saying “It may be possible very soon”.
FSD in Europe
On Friday, the Senior Advisor of the Swedish Transport Transportation, Rikard Fredriksson, shared on LinkedIn that he had been demoed the FSD technology in Germany with a Tesla employee. The moment marks the first official use of the assisted driving software in Europe.
Impressive smooth and natural driving
LinkedIn Post by Rikard Fredriksson after the FSD Demo in Germany
In the recent earnings call, Elon Musk said Tesla has over 300 million miles that has been driven with FSD v12 since it was launched just last month. He added that it's becoming “very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy”.
Tesla said it has been investing in the hardware and software ecosystems necessary to achieve vehicle autonomy and a ride-hailing service. The company is confident that it can establish a scalable and profitable autonomous driving business by employing a vision-only architecture.
Tesla has recently reduced the pricing of its “Full Self-Driving” software in the US, from $12,000 to $8,000, and in Canada from CA$16,000 to $11,000. This price reduction follows a 50% cut in the subscription fee announced earlier this month.
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