Option 2: In the opinion of a Tesla analyst who works for a bank that underwrote Tesla capital raises, it's a strategic move because the Autopilot is so awesome that it will eat away at Model S sales, though the mechanism by which that happens is unclear. And of course, Elon Musk is known for keeping things close to the chest.
I mean, it could be option 2, but I know where I'd put my money.