With the help of radar sensors and improved software, Tesla Motors (NASDAQ:TSLA) CEO Elon Musk believes Autopilot version 8.0 could make the company's vehicles three times safer than any other vehicle on the road.
In this video, Fool.com senior technology specialist Daniel Sparks joins CNBC to discuss the recent Tesla announcement and its ambitious production goals for the second half of 2016.
A full transcript follows the video.
This segment originally aired on Sept. 11, 2016.
Daniel Sparks: Tesla's being clear now that this is really about safety. That was a huge emphasis during the press conference with journalists where Elon really emphasizes that this is going to increase safety. He estimates that this is going to make Tesla vehicles three times safer than any other vehicle on the road, which is a huge claim to make.
And obviously, that has implications for investors if this is the case. Radar, specifically, he says is going to help the vehicles detect objects on the road better for the braking system than a typical emergency breaking system would, particularly through low-visibility situations like snow, rain, fog, etc.
Oriel Morrison: So what would you say to investors about this, in terms of the share price?
Sparks: Well, as it's well covered in the media, Tesla's stock valuation has priced in a lot of growth, so this is definitely nothing that I believe is ... it's time to jump in and buy because of this news. But it is very notable, and investors should take note because if this can take Autopilot to the next level, an area that is already a key selling point for Tesla vehicles, it could help Tesla as they're really trying to ramp up production. Investors should remember that they're to ramp up to 50,000 vehicles in the second half, which is actually equal to about the entire number of vehicles delivered in 2015, so it's definitely good news on that front.