&gt; Self-driving cars will be expensive because they will be marketed as a premium product to maximize profit.<p>You have this backward. The reason entrepreneurs often start with premium products is because you can extract more money from rich people and use that to pay product development costs. Developing self-driving cars is extremely expensive, and it will be for quite a while. The costs will eventually fall, but as with personal computers, it will take a while to figure out how to do that.<p>If you really had cars that could self-drive and the technology was effectively free, then the profit-maximization strategy wouldn&#x27;t be to sell Teslas, it would be to sell them to everybody. Tesla is selling maybe 10k cars per year. Even a $20k premium for self driving is only $200m. But the total US car market is 7 million or so. If you could get just an extra $1000, that would be $7,000m dollars in profit.