The announcement made late yesterday by Tesla CEO Elon Musk marks the Silicon Valley automaker's next step toward selling cars that can navigate the roads without the help of a human.
Google, ride-hailing service Uber and an assortment of other automakers also are working on a range of self-driving cars in an effort to ultimately turn the steering wheel over to robots.
Tesla has offered an automatic steering and braking system called Autopilot in its cars since last year, but that technology is meant to be monitored at all times by a driver.
By auto-industry standards Tesla is small, making about 100,000 cars a year, although hopes to increase its production to 500,000 vehicles per year by 2018.
More From This Section
Musk predicted the technology will be twice as safe as a human driver. But adding the protection will jack up prices on Tesla vehicles that already can run over USD 80,000 depending on what features a buyer wants.
Adding the software and activating the hardware needed for a fully autonomous car will cost an additional USD 8,000 a more than 20 per cent increase on the cost of Tesla's USD 35,000 Model 3 sedan that is scheduled to be delivered next year.
Tesla's future cars will have eight cameras instead of the single one currently on the vehicles running the less-sophisticated Autopilot system. They will have sensors with twice the range as the current vehicles and have 40 times more computing power capable of performing 12 trillion operations per second, according to Musk.
"It will basically be a supercomputer in a car," he said. But it's an open question when federal and state regulators in the US will settle on laws that allow robots to drive cars.