Tesla, Inc. (NASDAQ:TSLA) has announced a significant reduction in the monthly subscription fee for its Full Self-Driving (FSD) package, slashing it by 50% to $99 from the previous $199. However, the one-time purchase price for TSLA’s FSD suite remains unchanged at $12,000.
The FSD suite integrates advanced AI capabilities, including Basic Autopilot and Enhanced Autopilot functionalities, along with features like Autosteer on City Streets and Traffic Light and Stop Sign Control. The reduced monthly subscription aims to make these cutting-edge features more accessible, allowing users to experience them before committing to a full purchase.
Initially introduced in July 2021, the FSD subscription previously offered a $99 monthly option for vehicles equipped with Enhanced Autopilot. With Tesla now including Autopilot as standard in all new purchases, the focus has shifted to enhancing the adoption of FSD features.
Elon Musk, Tesla’s CEO, signaled support for the reduced monthly fee in response to a post suggesting its potential to boost adoption rates. Musk has been actively promoting FSD, even mandating demo rides with FSD for prospective buyers conducted by Tesla service center employees.
While FSD has received a mixed response from users, Tesla continues to refine its functionality through software updates, leveraging the vast amount of data accumulated from over one billion miles driven by FSD-equipped vehicles. Despite advancements, FSD remains reliant on human intervention and is not fully autonomous.
Federal regulators are investigating Tesla vehicles equipped with Autopilot following incidents involving collisions with stationary emergency vehicles, resulting in injuries and fatalities. Both Autopilot and FSD have been subject to recalls amidst safety concerns.
Musk advocates for opting for the FSD suite outright rather than the subscription service, highlighting its long-term benefits. Tesla is poised to unveil its robotaxi on August 8, 2024, reportedly built on the company’s latest vehicle platform, signaling its ongoing commitment to advancing autonomous driving technology.
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