Tesla recently announced a significant price cut for its Supervised Full Self-Driving (FSD) feature, reducing the monthly subscription fee from $199 to $99. This move is aimed at increasing FSD subscriptions and potentially attracting more customers who may find the lower price more appealing. While the reduced rate could lead to higher subscription numbers, it may also prompt existing customers to opt for the monthly plan instead of the $12,000 lifetime service.
Despite the price cut, the company has introduced free FSD transfers for new Tesla vehicles, indicating a shift in strategy to attract more users to the feature. Additionally, there is speculation that if FSD continues to improve and gain popularity, Tesla might raise prices in the future. It is important to note that FSD, while advanced, still requires a human driver to be alert and ready to take over at any moment, highlighting the current limitations of the system.
In response to the announcement, Tesla’s stock saw a slight increase in late trading, following a turbulent period for the company amidst increased competition and fluctuating demand. The week prior, the stock had gained 3.7%, driven in part by CEO Elon Musk’s promise of a robotaxi unveiling. The decision to lower the FSD subscription price reflects Tesla’s ongoing efforts to make its technology more accessible and appealing to a wider audience.