'Full Self-Driving Capability Subscriptions' - Tesla
Portfolio Pulse from Benzinga Newsdesk
Tesla has introduced a subscription model for its Full Self-Driving (FSD) capability, allowing owners with vehicles equipped with FSD computer 3.0 or above to subscribe to advanced driver assistance features. The subscription is available for vehicles with Basic Autopilot or Enhanced Autopilot, at a price of $99.00 per month. Hardware upgrades for the FSD computer are not included in the subscription.
April 12, 2024 | 8:16 pm
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Tesla's introduction of a subscription model for its Full Self-Driving capability could lead to increased revenue from existing vehicle owners, enhancing the value proposition of Tesla vehicles.
The introduction of a subscription model for FSD capability represents a significant step for Tesla in monetizing its existing fleet further. This move could lead to increased recurring revenue, as it lowers the entry barrier for customers to access advanced driving features. Given the high relevance of FSD to Tesla's product strategy and the potential for increased revenue, this news is likely to be viewed positively by investors in the short term.
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