Tesla has announced a price cut for its Full Self-Driving (FSD) subscription in the U.S., reducing it from $199 to $99 per month. This move goes against previous statements from CEO Elon Musk, who had indicated that the price of FSD would increase over time as the software improved and gained regulatory approval. Despite the name, Tesla’s FSD option does not currently make its vehicles fully autonomous or capable of operating as robotaxis. The company uses sensors and cameras to monitor driver attention and issues alerts to ensure they remain engaged while using the system.
The California Department of Motor Vehicles has accused Tesla of deceptive practices in its marketing of driver assistance systems, including Autopilot and FSD. Meanwhile, competitors like Waymo and Didi are already operating commercial robotaxi services in various cities. Despite promises from Musk about the development of a Tesla robotaxi, the company has not yet delivered on this vision. Tesla recently offered a free one-month trial of FSD to customers in North America to showcase the capabilities of the system, although reviews have been mixed.
In a push for end-of-quarter sales, Musk mandated that all sales and service staff install and demonstrate FSD for customers before delivering their vehicles. The company is also set to unveil a new dedicated robotaxi on August 8, although such events are primarily marketing strategies and do not necessarily indicate immediate production or delivery timelines. Tesla has previously unveiled products like the Roadster and the Semi truck without beginning deliveries for several years.
Despite the ambitious goals set by Musk for autonomous driving and the development of a Tesla robotaxi service, there are concerns about the actual capabilities and safety of the FSD system. While some customers have been impressed with the features, others have found the system to be inconsistent and potentially unsafe. It remains to be seen whether the price cut for the FSD subscription is permanent or temporary, as Tesla did not provide further information on this matter.
Overall, Tesla’s FSD subscription price cut in the U.S. raises questions about the company’s progress towards achieving fully autonomous driving capabilities. With competition in the autonomous vehicle space heating up, Tesla will face increasing pressure to deliver on its promises and maintain its position as a leader in the industry. Consumers and regulators will be closely watching developments in this area to ensure the safety and efficacy of these advanced driver assistance systems.
