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<ul class="summary-list"><li>The eight richest Americans have seen close to $400 billion erased from their fortunes this year.</li><li>Elon Musk's net worth has shrunk by $140 billion, while Jeff Bezos' wealth has slid by $86 billion.</li></ul>The eight wealthiest Americans have seen nearly $400 billion wiped off their combined fortunes this year, as historic inflation, soaring interest rates, and mounting fears of recession continue to hammer the value of their stocks.Tesla CEO Elon Musk's net worth has shrunk by an astounding $140 billion, slashing his wealth to $130 billion as of Tuesday's market close, according to the <a href="https://www.bloomberg.com/billionaires/" target="_blank" rel="noopener">Bloomberg Billionaires Index</a>.The sharp decline reflects the roughly 70% drop in Tesla stock this year, driven by investors <a href="https://markets.businessinsider.com/news/stocks/elon-musk-stock-market-tesla-sales-buybacks-twitter-fed-recession-2022-12">swapping</a> technology stocks for safer assets, worrying that running Twitter is a <a href="https://www.businessinsider.com/tesla-investor-ross-gerber-says-musk-isnt-suited-twitter-ceo-2022-12">costly distraction</a> for Musk, and fearing a US economic downturn and overseas headwinds will <a href="https://markets.businessinsider.com/news/stocks/elon-musk-tesla-stock-sales-economy-interest-rates-recession-twitter-2022-12">hit the automaker's growth</a>.Meanwhile, Amazon founder Jeff Bezos' wealth has fallen by $86 billion, while Alphabet cofounders Larry Page and Sergey Brin have seen their fortunes shrink by a combined $91 billion. Microsoft cofounder Bill Gates' net worth has also tumbled by $29 billion, while former CEO Steve Ballmer has taken a $21 billion hit.Similarly, Oracle cofounder and <a href="https://markets.businessinsider.com/news/stocks/larry-ellison-oracle-tesla-stock-price-gain-rich-list-billionaires-2021-12">Tesla investor</a> Larry Ellison has suffered a $17 billion blow to his fortune, while Warren Buffett's wealth has only dropped by $3 billion. The eight Americans, along with LVMH's Bernard Arnault, Adani Group's Gautam Adani, and Reliance Industries' Mukesh Ambani, hold the top 11 spots in Bloomberg's global wealth rankings.The shrinking US fortunes overwhelmingly reflect sharp declines in tech stocks this year. Amazon's stock has halved in value, Alphabet shares have tanked 40%, Microsoft has dropped 29%, and Oracle 8%.While Buffett's Berkshire Hathaway shares have inched upward in value this year, some of the investor's other stocks have retreated and he's also <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-philanthropy-berkshire-hathaway-stock-bill-gates-foundation-wealth-2022-6">donated shares to charity</a>. As a result, his fortune has shrunk by about $3 billion this year.The upshot is that the eight richest Americans have seen an estimated $386 billion erased from their combined fortunes. That figure rivals JPMorgan's market capitalization, and comfortably exceeds the market value of Tesla ($345 billion), Nvidia ($352 billion), and all but a handful of America's biggest companies.A big chunk of the billionaires' wealth was vaporized by the sell-off in technology stocks this year, which has sent the Nasdaq index down 35% since the start of January. The downturn has been fueled by the Federal Reserve hiking interest rates from virtually zero in March to over 4% today, in response to inflation that surged to 40-year highs this year.Higher rates make borrowing more expensive, which typically cools demand and relieves upward pressure on prices. However, they also bolster returns from savings accounts and bonds, boosting their appeal relative to riskier assets such as stocks.Notably, tech stocks are largely valued on their potential future cash flows. Those become less attractive to investors when prices are soaring, haven assets are offering bigger returns, and a recession is threatening to sap demand and slow earnings growth.The fading appeal of tech stocks, coupled with company-specific headwinds such as flagging advertising demand and the impact of China's rolling COVID-19 lockdowns, help to explain why the richest Americans have seen part of their fortunes evaporate this year.Read more: <a href="https://www.businessinsider.com/stock-market-volatility-2023-investing-strategy-sp500-bank-america-subramanian-2022-12">Bank of America's stock chief warns that the S&amp;P 500's popularity could be its worst enemy as investors crowd in. She told us her strategy for avoiding that volatility in a rocky 2023 market.</a>

Elon Musk, Jeff Bezos, and the 6 other richest Americans have suffered a nearly $400 billion wealth wipeout this year

<ul class="summary-list"><li>US stocks ended lower Monday, marking a fourth consecutive decline amid worries about the economy. </li><li>JPMorgan CEO Jamie Dimon said a recession could push stocks down by another "easy 20%." </li></ul>US stocks closed lower Monday on festering worries about higher-for-longer interest rates and an economic recession while investors prepare for an incoming wave of corporate financial updates. All three of Wall Street's major indexes lost ground for a fourth consecutive session. Seven of the S&amp;P 500's 11 sectors fell, led by the overall high-flying energy group.Among tech stocks, shares of semiconductor and chip-equipment makers, including <a href="https://markets.businessinsider.com/stocks/nvda-stock">Nvidia</a> and <a href="https://markets.businessinsider.com/stocks/klac-stock">KLA-Tencor, </a>dropped after the US <a href="https://markets.businessinsider.com/news/stocks/stock-market-analysis-chinese-semiconductor-chip-stocks-joe-biden-exports-2022-10">stepped up export controls</a> on chip sales to China. The <a href="https://markets.businessinsider.com/index/philadelphia_semiconductor">Philadelphia Semiconductor index</a>, or SOX, hit a nearly two-year low during the session. Here's where US indexes stood at the 4:00 p.m. closing bell on Monday: <ul><li> <a href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">S&amp;P 500</a>: 3,612.39, down 0.75%</li><li><a href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">Dow Jones Industrial Average</a>: 29,202.88, down 0.32% (93.91 points)</li><li><a href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">Nasdaq Composite</a>: 10,542.10, down 1.04%</li></ul>Stocks fell before third-quarter corporate earnings season heats up this week, with figures due from investment banks including <a href="https://markets.businessinsider.com/stocks/jpm-stock">JPMorgan Chase</a> and <a href="https://markets.businessinsider.com/stocks/ms-stock">Morgan Stanley</a>. <a href="https://markets.businessinsider.com/news/stocks/jamie-dimon-stock-market-fall-20-percent-economic-recession-looms-2022-10">JPMorgan CEO Jamie Dimon </a>told CNBC on Monday he can see the stock market falling another "easy 20%" from current levels as a recession is likely to hit the US economy over the next six to nine months. Meanwhile, <a href="https://www.chicagofed.org/publications/speeches/2022/october-10-nabe-annual-meeting">Chicago Federal Reserve President Charles Evans</a> said he foresees interest rates moving higher and staying elevated. The Fed in November is expected to raise interest rates for the sixth time this year as it battles<a href="https://www.businessinsider.com/inflation-report-cpi-august-gas-prices-costs-recession-fed-rates-2022-9"> inflation that's been hovering at over 8%</a>. "I see the nominal funds rate rising to a bit above 4-1/2 percent early next year and then remaining at this level for some time while we assess how our policy adjustments are affecting the economy," he said in remarks at the annual meeting of the National Association for Business Economics. The fed funds rate has been pushed up to 3%-3.25% from zero early this year. "Front-loading was a good thing, given how far below neutral rates were. But overshooting is costly, too, and there is great uncertainty about how restrictive policy must actually become," said Evans. The September consumer price index report is due on Thursday. Here's what else is happening today:<ul><li>Former Federal Reserve Chair Ben Bernanke was part of a trio that<a href="https://markets.businessinsider.com/news/stocks/fed-nobel-prize-ben-bernanke-economics-financial-crisis-market-news-2022-10"> won the Nobel Prize for economics</a> for their work on banks and financial crises.</li></ul><ul><li>The<a href="https://markets.businessinsider.com/news/bonds/bank-of-england-boe-central-banks-government-bonds-pensions-liquidity-markets-10"> Bank of England</a> ramped up its emergency buying of UK government bonds as it launches temporary measures to further ease financial stress on pension funds. </li></ul><ul><li><a href="https://markets.businessinsider.com/news/stocks/paul-tudor-jones-stocks-bitcoin-recession-playbook-economy-federal-reserve-2022-10">Billionaire hedge fund manager Paul Tudor Jones</a> said a "recession playbook" would see stocks fall by 10%. </li></ul><ul><li><a href="https://markets.businessinsider.com/news/currencies/janet-yellen-strong-dollar-oil-currency-war-opec-cuts-2022-10">Treasury Secretary Janet Yellen</a> brushed off worries that the soaring US dollar is unbalancing markets. </li></ul><ul><li><a href="https://markets.businessinsider.com/news/stocks/mohamed-el-erian-says-fed-mistakes-could-spur-recession-2022-10">Economist Mohamed El-Erian</a> said the Fed "made two big mistakes" that could result in a "damaging" recession. </li></ul><ul><li>The European Union, which is trying to reduce its reliance on Russian energy, remained the<a href="https://markets.businessinsider.com/news/commodities/the-eu-is-still-the-largest-buyer-of-russian-fossil-fuels-2022-10"> largest importer of Russian fossil fuels</a> in September, according to a report.</li></ul>In commodities, bonds, and crypto:<ul><li><a href="https://markets.businessinsider.com/commodities/oil-price?type=wtisource=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">West Texas Intermediate crude</a> lost 2% to $90.77 per barrel.<a href="https://markets.businessinsider.com/commodities/oil-price"> Brent crude,</a> the international benchmark, fell 0.5% to $95.70. </li><li><a href="https://markets.businessinsider.com/commodities/gold-price?utm_medium=ingest&amp;utm_source=markets">Gold</a> moved 1.9% lower to $1,677 per ounce.</li><li>The US bond market was closed for Columbus Day. The <a href="https://markets.businessinsider.com/rates/u-s--rates-10-years">10-year Treasury yield</a> ended Friday's session at 3.89%. </li><li><a href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> slumped 1.2% to $19,235.11.</li></ul>

US stocks fall as investors prepare for an earnings deluge amid worries about rates and recession

The 20 most richest people in the world in 2024

Welcome to <keyword id="34991" type="ORGANIZATION" weightage="60" keywordseo="transportation">Transportation</keyword> &amp; Logistics Briefing, a new M-W-F morning email providing the latest news, data, and insight on how digital technology is disrupting transportation and delivery, produced by BI Intelligence.<a href="http://www.businessinsider.com/intelligence/top-5-disruptive-trends-shaping-transportation-and-logistics?IR=T&amp;utm_source=businessinsider&amp;utm_medium=content_marketing&amp;utm_term=content_marketing_subscription_text_link_transportation-and-logistics-briefing-gms-first-self-driving-car-model-new-regulatory-guidelines-for-self-driving-cars-thermal-sensors-for-fully-driverless-vehicles-2017-9&amp;utm_content=content_marketing_subscription_text_link&amp;utm_campaign=content_marketing_subscription_link&amp;vertical=transportation">Get the free Top 5 Disruptive Trends Shaping Transportation &amp; Logistics report and start receiving our brand new Transportation &amp; Logistics newsletter.</a>Have feedback? We'd like to hear from you. Write me at: <a href="mailto:jcamhi@businessinsider.com">jcamhi@businessinsider.com</a>.TRUMP ADMINISTRATION PUTS CRITICAL SELF-DRIVING TECH ON HOLD: Government efforts to mandate vehicle-to-vehicle (V2V) communication technology have stalled under the Trump administration, according to a new Bloomberg <a href="https://www.bloomberg.com/news/articles/2017-09-21/best-self-driving-tech-going-nowhere-as-rules-stall-under-trump">report</a>. V2V technology, considered critical for self-driving cars, creates a shared network between different cars, allowing them to continuously share vital safety information, such as their current speed, position within a lane, and data from their sensors and cameras. That makes the technology a key enabler of fully driverless cars that don't require human intervention.Regulators under the Obama administration had been pushing a mandate for all new cars to be equipped with V2V transponders by 2023, but the Trump administration has put those efforts on hold, auto industry executives told Bloomberg. The Department of Transportation's (DoT) recently <a href="https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/documents/13069a-ads2.0_090617_v9a_tag.pdf">updated</a> self-driving car guidelines don't even mention V2V technology. DoT Secretary Elaine Chao has also suggested that the federal government will leave it up to states to draft rules around vehicle-to-infrastructure communication, a similar technology that allows cars to communicate with stop lights and other road infrastructure. The National Highway Traffic Safety Administration (NHTSA) has given no indication about next steps about moving forward with the mandate, even though many automakers and auto suppliers support it, Bloomberg reported. Some automakers, including Tesla, have come out against the mandate though, arguing that it may force the industry to adopt V2V and ignore possible alternatives.Without a mandate and industry-wide standard for V2V communication, automakers are delaying their V2V implementations. Ford, for instance, has put a hold on installing V2V technology in its vehicles, which can cost up to $350 per vehicle. Without a common standard adopted by all automakers, cars made by different manufacturers may not be able to communicate with each other, diminishing the V2V's value. And, if the technology can't deliver important safety benefits, automakers will have a hard time convincing consumers to pay extra for it.Lack of V2V standards could prove a major road block as automakers and tech companies look to launch driverless vehicles. Many companies, including Waymo, are determined to skip semi-autonomous vehicles and bring self-driving cars to market that require little to no intervention from a driver. Eliminating the driver is also key to enabling the benefits of self-driving cars for mobility services like ride-hailing. However, V2V technology is critical for safety when the driver is removed from the equation. So it is unlikely companies will be able to mass produce driverless cars until V2V standards are implemented.Enjoy reading this briefing? <a href="http://www.businessinsider.com/intelligence/transportation-and-logistics-briefing" target="_blank" rel="noopener noreferrer">Sign up and receive Transportation &amp; Logistics Briefing to your inbox.</a>TESLA TURNS TO AMD FOR AI CHIPS: Tesla is working with chipmaker AMD to build its own graphics processing units (GPUs) and central processing units (CPUs) to lessen its reliance on Nvidia, another chip designer prominent in AI and self-driving cars, according to <a href="https://www.cnbc.com/2017/09/20/tesla-building-an-ai-chip-for-its-cars-with-amd-globalfoundries.html">CNBC</a>. The companies will work together to design computing systems based on the x86 architecture, which was originally developed by Intel, that Tesla will eventually own intellectual property (IP) rights to. Tesla has relied on Nvidia for the graphics processors in its cars since <a href="http://www.nvidia.com/object/tesla-and-nvidia.html">shortly after</a> the original Model S was released in 2012.Here are the implications of this news for all three companies:<ul><li>While the deal itself won't hurt Nvidia significantly right now, it could threaten its long-term position in the market. Nvidia has moved to the forefront of self-driving technology, with agreements to supply its GPUs and Drive PX2 computing system to a number of automakers, including Volvo, Toyota, and Audi. GPUs are critical for self-driving cars because of their ability to process large quantities of visual data very quickly. While Tesla is one of its smaller auto partners in terms of size, the electric carmaker is considered a leader in developing autonomous cars. Tesla's move could prompt Nvidia's other auto partners to take a closer look at AMD as an alternative to Nvidia, which has been the dominant player in the market so far.</li><li>Meanwhile, building its own computing systems is part of Tesla's larger effort to wean itself off third-party suppliers and do more in-house. Tesla has been winding down its relationships with third-party suppliers and building more self-driving technologies in-house. Last fall, it broke off its relationship with Israeli LiDAR designer Mobileye, which supplies camera and sensor technology for self-driving cars. Building and owning the IP for its own processors is just the latest move in this effort.</li><li>But AMD could be the big winner of this development. This is AMD's first foray into the auto industry. The company can offer a compelling package for automakers as it is the only player that can offer both x86 CPU and strong GPU IP and expertise, according to Jefferies Analyst <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwiKq-3e3rbWAhWo7YMKHYiaCh0QqOcBCCYwAA&amp;url=https%3A%2F%2Fwww.cnbc.com%2F2017%2F09%2F21%2Fwall-street-is-gushing-over-amd-on-its-a-i-chip-relationship-with-tesl">Mark Lipacis</a>. If the GPUs and CPUs that Tesla builds with AMD help the automaker accelerate its AI and self-driving car development, AMD will be well-positioned to score more partnerships with automakers. It's worth noting that Tesla's head of AI, Jim Keller, spent many years at AMD and likely helped secure the partnership. </li></ul><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="BI Intelligence" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/59bacb5738d20d1f008b631a-960/07052017-teslaq2shipments.png"></a>BI Intelligence</div></div></div>MATTERNET SET TO ESTABLISH PERMANENT DRONE DELIVERY NETWORK IN SWITZERLAND: US-based drone delivery startup Matternet will begin operating a commercial drone delivery network for medical samples in Switzerland next month, Tech Crunch <a href="https://techcrunch.com/2017/09/20/matternets-autonomous-delivery-drones-can-now-refuel-and-reload-by-themselves/">reports</a>. The network will speed up the delivery of critical medical samples, such as blood tests, by using autonomous drones to avoid potential road traffic delays. Matternet's drones can fly up to 12 miles at speeds up to 43 mph, allowing patients and doctors to get test results much more quickly, according to the startup.The delivery network will use Matternet's newly unveiled base stations, where drones can dock, pick up or drop off deliveries, and swap out batteries. The stations, which can be built on the ground or on hospitals' rooftops, allow the drones to make their deliveries with minimal human effort. New packages are placed into a drawer and labeled with a QR code that tells the drone the package's destination. Workers only need to place samples into special storage containers and drop them in the drawer. The drones can autonomously retrieve fully charged batteries from a small storage bay built into the stations. The drones and base stations can also communicate with each other via a shared network, allowing the base stations to coordinate landings between multiple incoming drones. Matternet will operate the network in partnership with Swiss Post, and plans to market its drones, base stations, and supporting cloud software as an all-in-one drone delivery solution to logistics companies. The startup plans to explore partnerships with logistics companies in the UK and Germany. European regulators have been more friendly to drone delivery programs than their US counterparts, which is why Amazon decided to launch its initial drone delivery tests in the UK. Matternet has a strong value proposition in speeding up critical medical deliveries that should help it attract new business partners and gain regulators' blessing.<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="BII" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/596e362a552be5b6088b5004-960/drone delivery consumer.png"></a>BII</div></div></div>In other news…<ul><li>Chinese search giant Baidu <a href="https://globenewswire.com/news-release/2017/09/21/1125651/0/en/Baidu-Announces-Apollo-1-5-and-a-10-Billion-yuan-Autonomous-Driving-Fund.html">launched</a> a $1.5 billion fund to accelerate the progress of its self-driving car efforts. The fund, dubbed Apollo 1.5, will invest in 100 autonomous driving technology projects over the next three years. The company also launched an open-sourced platform for the software and artificial intelligence (AI) behind self-driving cars. The fund should help the company accelerate the progress of those technologies and gain a leg up on Didi Chuxing, one of its primary self-driving car rivals in China.</li><li>Best Logistics, the Chinese logistics firm that Alibaba owns a 23% stake in, cut its planned IPO price from $713 million to $447 million, according to <a href="https://www.wsj.com/articles/alibaba-backed-chinese-logistics-firm-best-slashes-ipo-plan-1505833194?mod=djemlogistics&amp;mg=prod/accounts-wsj">The Wall Street Journal</a>. The company initially filed for an IPO back in June. In addition to being its largest investor, Alibaba is also its largest client, accounting for about 70% of the company's express deliveries from January to March of this year. The pullback seems to stem from investor concerns over increasingly intense competition in China's fragmented logistics business.</li><li>Fedex said that a cyber attack in June on its Netherlands-based TNT Express subsidiary cost the company $300 million, prompting it to revise its profit forecasts down for the rest of the year, according to <a href="https://www.wsj.com/articles/fedex-takes-earnings-hit-following-cyberattack-1505857258?mod=djemlogistics">The Wall Street Journal</a>. The company acquired TNT for $4.8 billion back in 2015 to expand its presence in Europe. On a call with analysts, CFO Alan Graf said the company is considering purchasing cyber insurance to prevent future attacks from causing the same level of damage to the company.</li></ul><div id="categorypromo"><h2><a href="http://www.businessinsider.com/intelligence/top-5-disruptive-trends-shaping-transportation-and-logistics">Click here to receive a FREE download of The Top 5 Disruptive Trends Shaping Transportation and Logistics from BI Intelligence, Business Insider's premium research service.</a></h2></div>

TRANSPORTATION AND LOGISTICS BRIEFING: Trump administration stalls critical self-driving car tech - Tesla developing its own AI chips - Matternet's new drone delivery network

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Joe Skipper/ReutersTesla CEO Elon Musk.</div></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/tesla">Tesla's</a> approach to developing and selling self-driving technology is unlike its competitors'. </li><li>Tesla doesn't use lidar, a piece of hardware its high-profile competitors consider a necessity. Tesla has also resisted its rivals' preference for acquisitions and partnerships.</li><li><a href="https://markets.businessinsider.com/stocks/tsla-stock">Tesla</a> also sells hardware it promises will support self-driving software, though it doesn't specifically say when that software will be available.</li><li>Two prominent Tesla bulls - Gene Munster and Adam Jonas - told Business Insider they think the company's unconventional ideas will pay off in some areas and require a reversal in others.</li></ul>Tesla's approach to developing and selling self-driving technology could cause some hiccups for the company down the line, experts say. The most divisive element of its strategy, arguably, is its refusal to use <a href="https://www.businessinsider.com/difference-between-google-and-tesla-driverless-cars-2015-12">lidar sensors</a>, which emit pulses of light that bounce off objects to determine where they're located, in its planned self-driving system. Lidar sensors are seen by Tesla's <a href="https://www.businessinsider.com/ford-argoai-gm-invest-lidar-tesla-2017-10">high-profile competitors</a>, like Waymo, General Motors, and Uber, as a necessity, but Tesla CEO <a href="https://www.businessinsider.com/category/elon-musk">Elon Musk</a> has said they're a <a href="https://www.businessinsider.com/elon-musk-tesla-network-ready-in-2019-2018-5">"crutch,"</a> and that Tesla can build self-driving cars using just cameras and radars.Gene Munster, a managing partner at the venture capital firm Loup Ventures, said while Tesla will be able to improve its semi-autonomous driver assistance system, <a href="https://www.businessinsider.com/category/tesla-autopilot">Autopilot</a>, without lidar, Tesla will have to use it to achieve <a href="https://www.businessinsider.com/what-are-the-different-levels-of-driverless-cars-2016-10">Level 5 autonomy</a> - which means a vehicle can drive itself without human input in all situations.Munster said he is interested in Tesla's autonomous driving technology in part because of a <a href="https://www.tesla.com/videos/autopilot-self-driving-hardware-neighborhood-long%20%20">2016 video</a> on the company's website, which depicts a vehicle driving itself on residential streets and handling situations, like left-hand turns at intersections, that present challenges for self-driving vehicles. The video suggests that Tesla's autonomous driving technology is close to consumer-ready, but Munster said that likely isn't the case."I think we're just further away than that video would make you believe," he said.Adam Jonas, an auto analyst at Morgan Stanley who has a $299.02 price target for the stock, said Tesla will most likely use lidar within the next eight years."I would be surprised if, by the middle of the next decade, they did not have some form of lidar on the car," he said.<h2>Tesla may have to refund a risky product</h2><div class="KonaFilter image-container display-table"><div><div class="image on-image">TeslaA video on Tesla's website that shows a vehicle driving itself.</div></div></div>If Munster and Jonas' predictions are correct, Tesla will find itself in a difficult position. Since October 2016, the company has sold what it calls "full self-driving capability." For $3,000 (or $5,000 if purchased after delivery), customers can double the number of cameras on their vehicles from four to eight, which Tesla says will give them the ability to drive without human assistance once the necessary software is ready and receives regulatory approval. But <a href="https://www.tesla.com/autopilot">on its website</a>, Tesla says it doesn't know when that will happen. Selling a feature without giving any timeline for its availability is unusual in any industry, and Munster said he doesn't think Tesla will be able to fulfill its promise that <a href="https://www.tesla.com/blog/all-tesla-cars-being-produced-now-have-full-self-driving-hardware">all vehicles sold since October 2016</a> will be able to support self-driving hardware. "I'm surprised they sell it," he said.Munster said he believes fully-autonomous vehicles won't arrive for five to 10 years, and that Tesla will have to refund the customers who bought the self-driving hardware for incompatible vehicles, a number Munster said he thinks is relatively small compared to the number of <a href="https://www.businessinsider.com/teslas-autopilot-faces-scrutiny-after-accidents-2018-5">Autopilot</a> customers, or offer them discounts on newer Tesla vehicles.Tesla's confidence in its ability to integrate new software into existing hardware may stem from its history of vertical integration. The company has long sought to <a href="https://www.businessinsider.com/elon-musk-tesla-solarcity-vertically-integrated-2016-11">design and manufacture</a> as many elements of its vehicles as possible, rather than outsource them to third parties, a rarity in the modern auto industry. That desire extends to autonomous driving technology. While many of its competitors, like General Motors, Ford, Toyota, Volkswagen, Waymo, and Uber, have sought <a href="https://www.businessinsider.com/gm-self-driving-cruise-business-benefits-from-softbank-deal-2018-7">acquisitions</a> or <a href="https://www.businessinsider.com/toyota-to-invest-500m-in-uber-at-72b-valuation-report-2018-8">partnerships</a>, Tesla has been developing its self-driving software without outside assistance and has moved to decrease its reliance on third-party hardware. While the company's current vehicles feature software chips made by Nvidia, Musk said in 2017 that Tesla has been <a href="https://www.businessinsider.com/elon-musk-says-tesla-is-making-ai-chips-for-its-self-driving-cars-2017-12">developing its own chip</a>. During the company's second-quarter earnings call in August, Musk said the chip's processing power is "an order of magnitude" better than any existing options.<h2>Going it alone could pay off</h2><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="https://twitter.com/macjshiggins/status/920326969522241536">MacCallister Higgins</a>Tesla does not use lidar sensors in its planned self-driving technology.</div></div></div>Tesla's go-it-alone strategy risks spreading the company's resources too thin or demanding unsustainable levels of investment, but it could pay off in the long run, Munster and Jonas said. Munster compared <a href="https://www.businessinsider.com/gene-munster-tesla-is-the-next-apple-2017-5">Tesla's desire for vertical integration</a> to Apple's. Unlike some mobile phone makers, Apple sought to control the manufacturing and design of the iPhone, which has helped drive the company's enormous profits and <a href="https://markets.businessinsider.com/news/stocks/apple-stock-price-trillion-dollar-market-cap-us-company-2018-8-1027427055">historic market capitalization</a> since its introduction in 2007.For traditional automakers, who have spent most of their existence focused on vehicle manufacturing, a partnership with a tech company can accelerate the transition to a business model that is more reliant on software and services. Likewise, partnering with an auto manufacturer is easier for a tech company than learning how to make cars. But Tesla has emphasized both software and manufacturing expertise since its founding, which is the optimal route, Munster said, and makes it easier for the company to work on new technology without outside assistance.Jonas said taking on autonomous driving hardware and software by itself will yield dividends for Tesla, even if it does end up partnering with another company down the line. By attempting to solve the most difficult problems in self-driving technology, Tesla will develop a wider base of knowledge than its competitors, which could help in identifying and working with potential partners, Jonas said. Tesla's desire to create self-driving technology with minimal assistance is the latest in a history of bold, unconventional decisions. How well this one pays off will have a significant impact on the company's future.Have a Tesla news tip? Contact this reporter at <a href="mailto:mmatousek@businessinsider.com" target="_blank" rel="noopener">mmatousek@businessinsider.com</a>.<h2>Read more about automotive technology:</h2><ul><li><a href="https://www.businessinsider.com/what-its-like-to-try-teslas-autopilot-2018-7">I tried Tesla's Autopilot for the first time - and it was terrifying at first</a></li><li><a href="https://www.businessinsider.com/why-car-makers-spending-billions-on-self-driving-tech-will-pay-off-2018-9">Car companies are pouring billions into self-driving tech they may never use, experts say</a></li><li><a href="https://www.businessinsider.com/google-car-project-history-2018-8">Waymo could be worth as much $175 billion - here's a brief history of the Google Car project</a></li><li><a href="https://www.businessinsider.com/waymo-alphabet-employee-reveals-how-self-driving-cars-are-tested-2018-8">A Waymo employee reveals how the company is putting their self-driving cars to the test</a></li><li><a href="https://www.businessinsider.com/what-its-like-to-ride-in-a-self-driving-shuttle-2018-7">I rode in a self-driving shuttle in Times Square - and it showed what the early years of fully-autonomous vehicles might look like</a></li><li><a href="https://www.businessinsider.com/best-self-driving-systems-in-cars-compared-2017-12">We tried Tesla's, Cadillac's, and Mercedes' semi-autonomous driving systems - and the winner is clear</a></li></ul>Get the latest Tesla stock price<a href="http://markets.businessinsider.com/stock/TSLA-Quote"> here.</a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/semi-trike-motorcycle-bus-spare-semitruck-parts-2018-8">This trike is made to look like a semitruck</a></h3> <div> </div> </div>

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