Elon Musk is requiring a “FSD” demo for every potential Tesla buyer in North America

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Elon Musk hands over a Model Y automotive to a customer through the opening ceremony of Tesla’s recent electric automotive gigafactory in Gruenheide, Germany, March 22, 2022.

Patrick Pleul | Swimming pool | Via Reuters

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CEO Elon Musk is now requiring employees to put in and show customers how one can use the most recent version of the corporate’s premium driver-assist system, which is marketed as “FSD,” or Full Self-Driving, before completing delivery of the vehicle in North America.

“Going forward in North America, it will be mandatory to install and activate FSD V12.3.1 and take customers for a short test drive before handing over the car,” Musk wrote in an email to employees on Monday. “Almost no one really realizes how well (supervised) FSD actually works. I know this will slow down the delivery process, but it’s still a difficult requirement.”

Bloomberg first reported Musk’s email, which was also seen by CNBC.

While all recent Tesla vehicles include a standard driver assistance system called Autopilot, the corporate’s FSD option costs $199 per thirty days for most North American customers.

Tesla’s FSD system doesn’t turn cars into autonomous vehicles. According to Tesla’s user manuals, drivers must listen to the road and be able to steer or brake in any respect times when using the FSD or FSD Beta.

FSD vehicle owners also can access the FSD Beta system, which allows them to check and help debug newer driver assistance features on public roads.

Under pressure from the National Highway Traffic Safety Administration, Tesla has implemented voluntary recalls in recent years to enhance the protection of its Autopilot, FSD and FSD Beta systems.

Tesla didn’t immediately reply to a request for comment.

In a separate memo sent to Tesla employees, the corporate is asking salaried and hourly employees to enroll for extra shifts to deliver cars to customers in the ultimate days of the primary quarter.

“Join us and delight customers when they receive their delivery!” the note said. “While our production capacity allows for a more even distribution of vehicle deliveries throughout the quarter, we still need your support to move, prepare and deliver vehicles to customers throughout the first quarter.”

Tesla’s salaried employees don’t receive additional pay in the event that they work shifts, but hourly employees are eligible for additional pay, typically billing their hours to a sales and delivery cost center, in keeping with the memo seen by CNBC.

Tesla is under pressure to avoid a year-over-year delivery decline in the primary quarter. At least one independent researcher, publishing as “Troy Teslike,” predicts Tesla will record just 407,000 deliveries this quarter, which could be down from 422,875 a 12 months ago.

Tesla shares are down about 30% this 12 months, closing at $172.63 on Monday.

TO WATCH: The analyst expects Tesla’s multiple to proceed to say no

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