Statement A: Tesla is just hyping autonomous driving since no technology can deliver fully autonomous driving right now.
Statement ~A: Low-cost LIDAR is available to any high-volume customer, of which Tesla is one, given Model 3 demand. And LIDAR can deliver fully autonomous driving.
The point simply being, I have a hard time believing that even with good-looking, cheap LIDAR being a possibility, as you claim, Tesla chose to go with an inferior sensor suite, for no apparent reason.
Volvo already has a concealed LIDAR in their self driving car.[1] Volvo will put 100 self-driving cars in the hands of ordinary drivers in Sweden in 2017. This is self-driving by the pros. Makes Tesla look amateurish.[2]
And Volvo is way ahead on marketing self-driving.[3]
[1] https://www.youtube.com/watch?v=2q00jIBhkq4 [2] http://www.volvocars.com/intl/about/our-innovation-brands/in... [3] https://www.youtube.com/watch?v=uDB6fFflTVA
Low-cost LIDAR is a problem that can be solved with money and a customer ready to buy a lot of units. So far, no car company has said "we'll take a million units a year at $100 if they meet these specs." It's lack of demand, not lack of technology. It's a risk for the LIDAR maker. There are automotive radars available better than those currently on cars, but they don't have a volume buyer yet.