Legacy Research Group Staff Report
Electric car icon Tesla just made a huge announcement…
The first editions of their brand-new Model 3 will be delivered on July 28.
At $35,000, this is Tesla’s most affordable car yet, on par with the average price of a new car in America.
Last year, Tesla shipped just 76,230 cars. Next year, they expect to ship 500,000 Model 3’s alone.
Obviously, this is a huge step for electric cars… and Tesla.
But there’s something else going on here beneath the surface.
You see, most people don’t realize the Model 3 is also the most-advanced self-driving car in history.
Tesla is unique in the way it put together its self-driving technology. It essentially built the car around a computing platform. Rather than build computers into a car.
And because Tesla’s computers incorporate a radical new technology called “machine learning,” the car is constantly improving itself. New updates can be downloaded, over night, just like your smartphone.
Machine learning is a type of artificial intelligence technology that can essentially teach itself based on experience.
This technology “learns” best when fed large amounts of data, quickly. The larger the data set, the faster the machine learning algorithms can grow in intelligence.
Last year, Tesla reported that it was collecting 2.4 million miles of self-driving data every day from cars already on the road, all over the world, in just about any driving situation you can imagine.
That’s like making 429 round trips from Los Angeles to Manhattan in a single day…
By my calculations, Tesla should have over a half-billion miles collected by now.
Why is that so important?
Because as the machines in the cars learn more and more while in self-driving mode, that means Tesla is getting closer and closer to the Holy Grail – level 5 autonomous driving.
Level 5 means the cars are fully capable of driving themselves from start to stop.
And right now, all of Tesla’s cars have the necessary hardware for full, level 5 autonomous driving.
These cars have 12 ultrasonic sensors, 8 cameras, and an advanced self-driving supercomputer with processing power 40 times that of the previous generation.
But the software isn’t ready for Level 5 just yet…
We believe this will happen when they reach 1-2 billion miles of data.
And that milestone could come this year.
As soon as the necessary software update arrives, these cars will be capable of Level 5 autonomy.
Obviously, this breakthrough would mean a fortune for Tesla…
But there’s another way to profit here besides buying Tesla’s stock.
One unknown company makes a crucial part for these new Teslas. And as Model 3’s start rolling off the assembly line, I expect this stock to soar.You could potentially make 15 times your money or more, based on similar situations.