Tesla has lowered the price of the Full Self-Driving package, contrary to Musk's earlier statements

Tesla has unexpectedly dropped the price of its Full Self-Driving (FSD) software package from $12,000 to $8,000, despite CEO Elon Musk's previous claims that the cost of the technology would only increase.

Here's What We Know

The price drop came on the eve of Tesla's earnings report on 23 April, where Musk will likely have to explain the decision. Previously, he has repeatedly stated that the FSD package would gradually increase in price, possibly exceeding $100,000.

In fact, the FSD price peaked in 2022 when it reached $15,000 but was then reduced to $12,000. This month, Tesla also reduced the monthly subscription for FSD from $199 to $99. It will now take about 6.9 years of subscription to reach the current full cost of FSD.

In addition, the company closed the option to purchase the Enhanced Autopilot advanced driver assistance system for $6,000. Customers with this system can now upgrade to FSD by paying an additional $2000.

Musk's plans for fully autonomous vehicles will become more apparent by the end of the year following the unveiling of a "robot taxi car" on August 8.

Flashback

Despite the name, FSD is not a fully unmanned driving system. According to the SAE classification, it is a Level 2 autonomy system that requires the driver's constant attention, ready to take over control at any moment.

Because of the FSD name, Tesla has been repeatedly criticised. In 2022, the US Department of Justice launched an investigation into its advertising promises of autopilot.

Nevertheless, Tesla warns that FSD requires the driver's constant attention behind the wheel.

Source: The Verge