Tesla's Margins Fall, but Market Cap Rises

Tesla's goal of achieving full autonomy and full self-driving (FSD) capability for its vehicles appears to be still out of reach, despite CEO Elon Musk's repeated promises. The company has been selling FSD to customers since 2018, but has made little progress towards its goal. Failure to deliver on FSD could have significant financial and legal consequences for Tesla, including potential liability for billions of dollars in refunds. Musk's recent announcement of major new investments in computing infrastructure for FSD development suggests that Tesla's previous claims of having sufficient hardware and computing power were not accurate. The market's reaction to Tesla's latest earnings call indicates growing skepticism and potential risks for the company's valuation.