This could be a major problem for Tesla. Tesla has put all of its eggs in the FSD basket. The only reason to buy a Model X or S is for FSD. I remember reading a lot of the comments on early reviews of the Gravity and Tesla fan boys would comment “What, no FSD, not interested”. The rest of those cars are crap when compared to competition. If future Lucid midsize has FSD capability and is a more luxurious, quieter, comfortable vehicle, it will be very competitive even if a little costlier than Y or 3. Not to mention future Mercedes and other cars coming with this system.
It makes sense to pay for Nvidia to do the heavy lifting on this. Yes, Nvidia is not going to catch and pass Tesla soon but I think we are going to see a lot of interesting advancements on the autonomy front over the next 5 years.