fsd as a paradigm shift

The true essence of Apple's 'iPhone moment' wasn't about hardware technology or spec superiority. The real innovation came from the powerful 'soft power' created by the App Store and iOS ecosystem, which dramatically expanded the smartphone's utility.

While hardware can be replaced whenever new features are needed, it's the software that truly makes an iPhone personal to each user. Competitors could quickly imitate the hardware, but the software platform - built on the development ecosystem and unique UX design philosophy - has remained Apple's strong moat for over a decade.

In this context, I believe FSD (Full Self-Driving) has the potential to become Tesla's iPhone moment. This goes beyond the functional moat of "cars driving themselves" because it represents a paradigm shift in the automotive market from hardware to software.

While Tesla started in the electric vehicle market, as glimpsed in their recent robotaxi event, one of their main goals is to build a new software-centric mobility ecosystem. Tesla's definition of their vehicles as 'computers on wheels' illustrates this perspective.

Of course, Tesla is taking a long-term approach to various areas beyond automotive industry restructuring, such as energy business and humanoid projects, as shown in their recent earnings report. However, among these initiatives, FSD has the greatest potential to become their iPhone moment in a relatively short-term timeframe.

With the advent of AI, I believe hardware will become even more interchangeable. The key differentiator lies in software - it's the software that will define the future of technology and create lasting competitive advantages.