[JimmyAustin]

The issue is that Musk committed to the "LIDAR is unnecessary" path when he told users that the 6 figure cars he was selling had the necessary hardware to support L5 automation. There is going to be blowback if he suddenly says "Whoops, you gotta buy another or drop 20k on upgrades if you want SDC capability".

[Robotbeat]

I don't think Musk would spring for LIDAR until it's under $1000. If necessary, they can then find a way to retrofit the hardware onto those who already paid for the full autonomy option (maybe tens of thousands?), and for others, they can wrap the (relatively modest) cost into any future autonomy upgrades. "Enhanced autonomy" is a $5000 option for the Model S, with "Full autonomy" being another $3000. A $1000 LIDAR system definitely fits.