Tesla to Raise FSD Subscription Prices, Musk Confirms

Musk Announces Future Price Hike for Tesla's FSD Subscription

Elon Musk, CEO of Tesla Inc. (TSLA), has announced that the subscription price for the company's Full Self-Driving (FSD) software is set to increase as its capabilities advance. This move aligns with Tesla's strategy to transition from a one-time purchase model to a recurring subscription service.

Shift to a Subscription-Based Model

Tesla is phasing out the one-time FSD purchase option, priced at $8,000, after February 14. The company is encouraging users to adopt its subscription model, which is currently priced at $99 per month. Musk stated that this monthly fee will rise as the technology improves, particularly as it moves closer to fully unsupervised driving, which he sees as the point of a "massive value jump."

Impact on Tesla's Growth Strategy

This strategic shift comes as Tesla faces cooling sales in its primary electric vehicle division. Musk has consistently pointed to robotics, artificial intelligence, and autonomous vehicles as the key future growth drivers for the company. The FSD service is central to this vision, though it currently remains under the "supervised" category amid regulatory scrutiny and past lawsuits over its capabilities.

Future Outlook and Challenges

Tesla continues to develop its autonomous technology, with driverless robotaxis currently being tested in Austin, Texas. Musk also mentioned that production of the Cybercab, a two-seater autonomous vehicle, is slated to begin in April. Despite these advancements, he has cautioned that initial production for both the Cybercab and the Optimus humanoid robot will be "agonizingly slow," indicating potential hurdles ahead.

FAQ

Q: What is the current subscription price for Tesla FSD?
A: The current subscription price is $99 per month.

Q: When will Tesla stop offering the one-time FSD purchase?
A: The $8,000 one-time purchase option will no longer be available after February 14.

Q: Has a timeline been provided for unsupervised FSD?
A: No, Tesla has not provided a clear timeline for the release of a fully unsupervised FSD service.

Source: Investing.com