He's been a long time anti lidar proponent because of the costs involved and the aesthetics. He's also betting that the amount of data Tesla receives from its customers, and the neural net they have can achieve autonomous driving with its current hardware stack.
“In my view, it’s a crutch that will drive companies to a local maximum that they will find very hard to get out of,” Musk said. He added, “Perhaps I am wrong, and I will look like a fool. But I am quite certain that I am not.
"Despite being a fancy and expensive technology, LiDAR provides surprisingly little advantage over a combination of cameras and radar. Radar, for example, is much better in the rain and other limited visibility scenarios, because it is based on radio waves rather than light waves. Radio can penetrate through some objects and bounce back from others, thereby “seeing” the environment along a different dimension."
an excerpt from a quora answer on why the Tesla stack could be better than Lidar: https://www.quora.com/Why-dont-Tesla-cars-use-Lidar-like-mos...
Here's a video of Tesla's autopilot perceives its environment : https://www.youtube.com/watch?v=fKXztwtXaGo and here's a video of how Waymo perceives its environment: https://www.youtube.com/watch?v=OopTOjnD3qY
The question is if the Lidar adds incremental value or exponential value, and I think it's just incremental by looking at those videos.