Drivers charge their Teslas in Fountain Valley, CA, Wednesday, March 20, 2024.
Jeff Grchin | Media News Group | Getty Images
Tesla said on Friday that it is cutting the price of subscriptions to its premium driver assistance system for customers in the US.
It will be marketed as a full self-driving, or FSD, package to Tesla customers. Pay now $99 per month, down from $199.
The price drop contradicts previous promises from CEO Elon Musk, who has repeatedly said that FSD costs will only increase as Tesla adds features and functionality to the system.
“The price of FSD will continue to increase as the software gets closer to full self-driving capability with regulatory approval,” Musk said. wrote on Twitter, now known as X, on May 18, 2020. He said at the time that “FSD probably costs more than $100,000” per car.
Despite its brand name, the company’s FSD option does not make Tesla vehicles autonomous or robotically enabled today.
Musk has promised shareholders and customers a robotaxi for years, and has said his current vehicles will soon become self-driving after an over-the-air software update.
He told investors on a call in 2019 that autonomous driving would turn Tesla into a company with a $500 billion market cap, up from about $42 billion now. (The company is worth more than $500 billion today without even developing an autonomous car.) Tesla raised more than $2 billion in debt and equity after the call.
In a notice now shown to some drivers via the touchscreen display in their cars, Tesla says:
“Full Self-Driving (Supervised) can drive your Tesla almost anywhere. It will make lane changes, select forks to take on your navigation route, navigate around other vehicles and objects, and will take left and right turns. It should be used with extra caution and a careful driver does not make your vehicle autonomous.”
The company uses sensors in the steering wheel and cabin cameras, mounted above the rearview mirror, to determine whether a driver is paying attention, and will alert drivers with a sound. That they keep their eyes on the 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 U.S. vehicles, according to filings with the state regulatory agency. Standard package includes Autopilot and FSD.
during this, the alphabet-Owned by Waymo now. Operating Commercial robotaxi services in several US cities. The company also recently partnered with Uber Eats for driverless food delivery. In China, Didi’s autonomous unit operates commercially in markets including Guangzhou. Companies including Bill Gates-backed Wave in the UK and Amazon’s Zoox in the US is also testing Robotex.
In a push for sales at the end of the quarter last month, Musk mandated that all sales and service staff install and demo FSD to customers before handing over the keys. “Almost nobody really knows how well (supervised) FSD actually works,” he wrote in an email to employees. Nevertheless, it is a pressing need.”
After that, Tesla also announced that it will offer a free one-month trial of FSD to all customers in North America. Some enthusiasts have been impressed by owners’ responses to the latest version of FSD, and many safety-conscious drivers are turning off the free FSD trial, seeing as Contradictory and insecure.
Musk also recently promised to “unveil” a new dedicated robotaxis on August 8. For example, Tesla unveiled a new version of the Roadster, and an all-electric heavy-duty truck called the Semi in 2017 and doesn’t begin Semi deliveries until December 2022. It has not yet launched a new version of the Roadster.
Tesla did not respond to a request for more information, including whether the price cuts announced Friday are permanent or temporary.
Watch: Musk is trying to highlight the value that robotics can bring.
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