Tesla has made waves in the automotive industry once again, this time by slashing the monthly subscription price for its Full Self-Driving (FSD) package in half, now offering it at $99 per month. This move follows CEO Elon Musk‘s previous statements about continually increasing the price of FSD as the system improves.
All About Tesla Slashing Subscription Price
Indeed, the decision to sell an FSD package before being able to do true autonomous driving was a controversial one. From a business standpoint, selling an imperfectly perfected feature would be considered a high-risk endeavor. Yet, Tesla used that strategy to sell more cars and motivate people to buy the package early to push back implementation deadlines.
In fact, Musk, calling Tesla vehicles “appreciating assets,” pushed the FSD package price even higher in the past. Yet, last year, the leader changed the model of sale by reducing the bundle’s price from $15,000 to $12,000. The purchase option is not the only possible way of how Tesla drivers pay for FSD. As of June 2021, the option of a monthly subscription also emerged, starting at $199 per month. Now, with the price cut to $99 per month, Tesla aims to increase the adoption rate of FSD, especially as it rolls out FSD v12—a new version that relies fully on AI and requires driver attention at all times.
That reduction happened as Tesla also scheduled FSD demo drives as a requirement for the recent deliveries and provided one-month FSD free trials for current North American holders. That is the only other way the enterprise can gradually increase FSD’s use. Despite the reduced cost, several people question FSD’s advantages, so much so in contrast with the basic Autopilot computer features.
The $99 monthly fee might make sense for individuals who commute or need to fly hundreds of kilometers on the expressway or travelers. Other drivers are hesitant, particularly in the town, about the monthly subscription. It is unclear if Tesla consumers will consider FSD at the new cost. Nevertheless, Tesla’s measures demonstrate that it is attempting to obtain more market share for advanced driving assistance applications.
