There were 2 supermen in business field gave their epoch-making speech in the forum of Davos besides political leaders. I have already asked the AI to list out a summary of the speech of Elon Musk and a comparison of current Full Self Driving of Tesla and the future Full Self Driving of Nvidia. But let’s look at a special focus of cost accounting where AI had not mentioned.
One of the strongest points of Elon Musk is that he can develop a mass production line in a giga factory in the lowest cost. That’s why the first porotype of e-vehicle came out in the petroleum crisis of 1970s but still could not get popular over several decades until the mass production of Tesla which bringing such a high technology car to a price where general public can afford. Actually, Full Self Driving is developing in two major lines, one is installing into current cars for usage, and another is for development of robotaxi.
Why Full Self Driving of Tesla is different from others? Formerly, Cruise of General Motors and Waymo of GOOG were using programming, that is they use a lot of engineers to give orders to the car of what should do and what should not do. When Tesla entered into competition, they used the same method from version 1 to version 11. Elon Musk is a superman; in version 12 he eliminated all the previous 11 versions and changed to human eye detection to teach the car to drive. Ultimately it increased the safety to 10 times of human drivers. Therefore, the cost of insurance is 10 times lower than human drivers. For there would not be any drug driver, drunken driver, over-tiredness driver, incapable driver or sentimental driver owing to low mood after quarrelling and pressure of working, love and family or social affairs. Road safety is highly upgraded and life expectance can be increased.
Full Self Driving software can run 24 hours a day, no need to have annual leave, sick leave of human driver, no need to pay pension or mutual fund or fringe benefits or medical allowance or maternity leave, no need to invite them to afternoon tea or arrange birthday cake. In case of running a taxi company, the salary of driver is a major expenditure. When it is saved by FSD, the price need not to lower 100% of the salary, just have a 10%-20% cut and the company can earn much more and can give more discount to long term customers. Meanwhile, for human drivers, when he has bad record like crashing always, or illegal cutting lines always or not obey the traffic law, the insurance will be higher, and it is quite hard to tell distinguished driver to incapable drivers. Those that had bad record, the insurance fee will be higher, but Full Self Driving are all good record driver, so insurance fee is much lower and all are first class safety drivers.
There would not be any dispute between employers and employees, no demonstration, no protesting, no need to increase salary to fight against inflation annually which surely will increase the taxi fee every now and then. As for middle class car owners, they drive their car to office at nine, and thus can release the car to run as robotaxi and come back before five for clock off. So, it can made more people can afford a car for their own.
In case of manufacturing, Waymo has to ask another producer to make the car for them, but Tesla can make on their own. Not only this, their Full Self Driving can apply to all Tesla car running on the road now, just install the software and can use at once. Meanwhile, they can also design new robotaxi without steer and brake, a completely new space of car as the back seats of limousine. For car owner, they just jump on the car and manage their office work, or play video game or mobile game. There is no need for the driver to pay school fee to driving school to get a license, even giving some subscription fee to Full Self Driving when deducting the insurance fee still cheaper. In case of a general company, they need not to employ drivers when can lower their cost. In case of bus company or logistic company their cost will be lowered also. They even can save the uniform fee for human drivers.
So, all professional drivers, please get ready to change your job, including driving instructor, clerical staff of driving schools. The earlier you get ready the more choice you will have, the later the lesser choices. It’s a change of the era and no one can avoid. Save in costing is a MUST for every business, in the future AI will help us save more and more in costing.