Google Inc (GOOG) Doesn’t Want To Be A Carmaker

Cost

Musk is adamant that the cost of self-driving technology will need to come down. As a result, Tesla may decide to forgo Google and come up with its own system. “I think Tesla will most likely develop its own autopilot system for the car, as I think it should be camera-based,” said Musk. That would be cheaper than the laser sensing technology that Google Inc (NASDAQ:GOOG) is using.

A base Model S sedan costs $62,400. Adding in an autopilot system would raise the price significantly. Tesla Motors Inc (NASDAQ:TSLA) has long faced questions about its ability to stay in business ever since it announced it would mass-produce electric cars. But those who are tired of the traditional auto industry see Tesla as an excellent long-term investment in transportation.

Bottom line: don’t disregard what Musk says. Remember, he’s the same guy who launched the first successful private rocket into space.

Daniel Cawrey has no position in any stocks mentioned. The Motley Fool recommends General Motors, Google, and Tesla Motors . The Motley Fool owns shares of Google and Tesla Motors .