It's more of, you can now put usable LiDAR sensors in a package as small as a phone, and so cheaply that it doesn't impact the final sale price of said phone...

That, and every other AV company is using LiDAR sensors...

But, Musk has doubled down, tripled down and more on this. So much so, I doubt he could come to his senses one day without a big PR nightmare - after all, they've been telling folks their car has all the hardware for fully autonomous driving for the past 5+ years.