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Tesla Slashes FSD Price to $99 a Month

A subscription to Tesla’s Full-Self Driving software – now called FSD (Supervised) to remind drivers that the system requires their attention at all times – is now offered at $99 per month, up from $199 per month.

It’s just one of a handful of moves Tesla has made recently to attract more people to the company’s Level 2 self-driving system, which requires a driver to constantly monitor the vehicle.

Elon Musk recently asked all Tesla employees in an internal memo to take new customers for a “short test drive” of the FSD before handing over the vehicle during the delivery process.

His reasoning was that “almost no one really realized how well (supervised) FSD actually worked,” according to the memo confirmed by Business Insider.

In March, the company also announced that it would offer a one-month free trial of the FSD beta to all US customers.

Now, the recently announced cut could make Tesla’s controversial driver assistance software more accessible to its customers, which would be beneficial at a time when the company is falling short of investor expectations and continues to work toward improvement of its software.

In early April, Tesla said it delivered fewer cars in the first three months of 2024, selling 386,800 cars, about 90,000 fewer than investors expected. The company’s first-quarter performance marks the first year-over-year sales decline in nearly four years, BI reported.

According to TechCrunch, more customers using Tesla’s FSD could also mean the company could collect more data to improve its software.

The reduction also marks a departure – even if momentary – from Musk’s expectations that Tesla’s fully autonomous driving system would only become more expensive.

In 2020, Musk said on It’s unclear whether Musk was referring to the price per vehicle.

For a moment, that prediction came true when Musk increased the price of FSD’s lifetime service from $12,000 to $15,000 in 2022, with a monthly subscription option offered at $199. But last year, the company dropped the lifetime price to $12,000.

A Tesla spokesperson did not respond to a request for comment.


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