Except that is exactly what Nvidia did, and it worked out fine for them: https://arxiv.org/abs/1604.07316
Complete LIDAR units are already available for under $500[1]. There are other, cheaper sensors which aren't as good as full LIDAR but are available for under $100[2].
There are plenty of other options hitting the market soon too[3]
[1] http://www.teraranger.com/products/teraranger-lidar/
[2] https://www.pulsedlight3d.com/
[3] https://www.washingtonpost.com/news/innovations/wp/2015/12/0...
people are trying to fix this problem too
If those sensors eventually do become really cheap, then Tesla could use them too and negate any advantages Google might have had.