Tesla FSD Is Now Nearly 50% Cheaper Than When Elon Musk Called It 'Very Low' Just Under A Year Ago
Portfolio Pulse from Anan Ashraf
Tesla Inc has reduced the price of its Full Self-Driving (FSD) software to $8,000, a 33% cut from the previous $12,000, and nearly 50% down from the $15,000 price less than a year ago when CEO Elon Musk deemed it 'very low'. This follows a reduction in the monthly subscription fee from $199 to $99, aiming to increase the software's take rate by having more vehicles equipped with it on the roads. As of March 2024, FSD is deployed on about 2 million vehicles in the U.S., with Tesla's cars having driven one billion miles using FSD, up from less than 800 million at the end of 2023.
April 22, 2024 | 8:12 am
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Tesla's significant price reduction of its FSD software and the monthly subscription fee aims to boost adoption rates by making it more affordable, potentially increasing the software's take rate and enhancing the value proposition of Tesla vehicles.
The price reduction of Tesla's FSD software is a strategic move to increase its adoption rate, which is crucial for gathering more real-time driving data to train the software. This could lead to a higher perceived value of Tesla vehicles equipped with FSD, potentially boosting sales and positively impacting Tesla's stock in the short term. The announcement of reaching one billion miles driven with FSD software underscores the software's growing usage and reliability, further supporting the potential positive impact on Tesla's stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100