Drivers charge their Tesla in Fountain Valley, Calif., Wednesday, March 20, 2024.
Jeff Gritchen | Medianews Group | Getty Images
You’re here announced Friday that it is reducing the subscription price of its premium driver assistance system for customers in the United States.
Marketed as the Full Self-Driving Package, or FSD, Tesla customers will benefit now pay $99 per month, up from $199.
The price drop contradicts previous promises from CEO Elon Musk, who has repeatedly said that the cost of FSD will only increase as Tesla adds features and functionality to the system.
“The price of FSD will continue to increase as the software moves closer to full autonomous driving capability with regulatory approval,” Musk said. wrote on Twitter, now known as
Despite its brand name, the company’s FSD option does not make Tesla vehicles autonomous or functional as robo-taxis today.
Musk has been promising shareholders and customers a robo-taxi for years and said their existing vehicles would soon become autonomous after an over-the-air software update.
He told investors on a 2019 call that autonomous driving would transform Tesla into a company with a market capitalization of $500 billion, up from about $42 billion at the time. (The company is now worth more than $500 billion, even without developing a self-driving car.) Tesla raised more than $2 billion through debt and equity after the call.
In a notice that is now displayed to some drivers via their cars’ touchscreens, Tesla states:
“Fully autonomous (supervised) driving can take your Tesla almost anywhere. It will make lane changes, select turns to follow your navigation route, drive around other vehicles and objects, and make left and right turns. right. It should be used with extra caution and an attentive driver. It does not make your vehicle autonomous. Don’t become complacent.”
The company uses sensors in the steering wheel and cameras in the cabin, placed above the rearview mirror, to determine whether a driver is paying attention or not, and will audibly alert drivers to keep their eyes on the road. road or hands on the wheel.
In 2022, the California Department of Motor Vehicles formally accused Tesla of engaging in deceptive practices around the marketing of its driver assistance systems, including its standard Autopilot and FSD package in the United States, according to documents filed with a state administrative agency.
In the meantime, AlphabetWaymo-owned Waymo now operates commercial robotaxi services in several U.S. cities. The company also recently partnered with Uber Eats for driverless food delivery. In China, Didi’s standalone unit operates commercially in markets such as Guangzhou. Companies including Bill Gates-backed Wayve in the UK and from Amazon In the United States, Zoox is also testing robotaxis.
In an effort to secure end-of-quarter sales last month, Musk required all sales and service personnel to install and demonstrate FSD for customers before handing over the keys. He wrote in an email to employees: “Almost no one realizes how well (supervised) FSD actually works. I know this will slow down the delivery process, but it is a strict requirement nonetheless.
After that, Tesla also announced that it would offer a one-month free trial of FSD to all customers in North America. Owner responses to the latest version of FSD have been mixed, with some fans impressed and many safety-conscious drivers turning off FSD’s free trial, considering it inconsistent and dangerous.
Musk also recently promised to “unveil” a new dedicated robotaxi on August 8. Tesla’s unveilings are marketing events and do not indicate a date for the start of production and deliveries. For example, Tesla revealed a new version of the Roadster and an all-electric heavy-duty truck called Semi in 2017 and only began Semi deliveries in December 2022. It still hasn’t produced the new version of the Roadster.
Tesla did not respond to a request for additional information, including whether the price cut announced Friday is permanent or temporary.
WATCH: Musk tries to highlight the value that robotaxis could bring
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