Elon Musk's Tesla Slashes Price Of Full Self-Driving Package By Half: '...Now $99/Month'
Portfolio Pulse from Ananya Gairola
Tesla Inc. (NASDAQ:TSLA) has reduced the monthly subscription fee for its Full Self-Driving (FSD) package in the U.S. from $199 to $99, a move that contrasts with CEO Elon Musk's previous statements that the FSD price would increase as it approached full self-driving capability. This price cut follows Tesla's announcement that its cars have driven one billion miles using FSD software, amidst controversies and accusations of deceptive marketing practices by the California DMV.

April 13, 2024 | 5:46 am
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Tesla's significant price cut for its FSD package may impact investor sentiment and stock performance, especially considering the contrast with Elon Musk's previous statements on FSD pricing strategy.
The price reduction of Tesla's FSD package to $99 could have a mixed impact on TSLA's stock in the short term. On one hand, it could boost subscription numbers and user engagement with Tesla's technology, potentially increasing recurring revenue. On the other hand, it contradicts Elon Musk's previous statements about increasing FSD prices, which could raise concerns about the company's pricing strategy and future revenue projections from FSD. Additionally, the backdrop of legal controversies and the significant milestone of one billion miles driven using FSD software add complexity to the potential impact on the stock.
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