Tesla Lowers Full Self-Driving Monthly Subscription Price to $99 from $199

Tesla is reducing the subscription fee for its Full Self-Driving (FSD) driver-assist software to $99/month, down from $199.

Tesla announced the price adjustment in a post on X, formerly known as Twitter, where it referred to its Level 2 driver-assist system as “FSD (Supervised).” This renaming emphasizes that drivers must remain alert and prepared to take control of the vehicle. Previously, the company charged $199 per month for FSD or a one-time fee of $12,000. Owners with Autopilot, a less advanced system, could subscribe to FSD for $99 monthly. Now, Tesla includes Autopilot as a standard feature on all new vehicles, removing the need for differentiated pricing.

Tesla recently started offering a one-month free trial of FSD to encourage more customers to try it. Additionally, under direct instructions from Elon Musk, the company has reportedly required its service center employees to take all prospective buyers on a demonstration ride using FSD.

Thoughts

Tesla’s decision to reduce the subscription fee for its FSD software from $199 to $99 per month could have several implications. More customers could opt into trying the technology, particularly those who were hesitant about the cost previously. This increased adoption could help Tesla strengthen its market position and gain a competitive edge against other companies developing similar driver-assist technologies.

Additionally, rebranding the system to “FSD (Supervised)” could help manage customer expectations by clearly indicating that the technology requires driver oversight. By emphasizing the need for supervision and offering demonstration rides, Tesla focuses on addressing safety concerns and regulatory scrutiny. This proactive approach could enhance the perceived safety of the technology among consumers and regulators alike.

Moreover, with more drivers using FSD, Tesla could benefit from a broader data pool collected from various driving conditions. This data is crucial for refining the system’s algorithms, enhancing accuracy and reliability, and advancing the technology’s development.

On August 8, Elon Musk will speak to us about the Robotaxi project and will likely provide some updates. FSD technology might be ready in the near future. The Tesla AI team seems to have made significant progress in that direction.