Tesla (TSLA) CEO Elon Musk announced on X that his tech & AI-based automaker will stop selling the Full Self-Driving (FSD) package from February onwards. He also confirmed the last date to purchase FSD after which, only subscriptions will be available.
From 14th February, Tesla customers will not be able to order FSD as a lifetime one-time purchase when buying a Tesla vehicle. Instead, the only option to use Tesla FSD will be a monthly subscription.
Tesla introduced FSD subscriptions in 2021. This new pay-as-you-go method allowed many new and existing Tesla customers to try Full Self-Driving before buying it completely. Some users prefer the subscription method for on-and-off use, depending on each person’s preferences and varying circumstances.
“Tesla will stop selling FSD after Feb 14,” Musk wrote on X. “FSD will only be available as a monthly subscription thereafter,” he added.
The interesting bit in this announcement is the selection of the date to end FSD sales on 14th February, Valentine’s Day. Musk is known for his love for easter eggs and interesting timelines.
The current price of Tesla FSD (Supervised) is $8,000 as a one-time purchase. FSD is also available as a $99/month subscription.
Historically, the FSD price went as high as $15,000 when the hype for Tesla’s autonomous system was at its peak. Tesla kept FSD at this price point from September 2022 to September 2023. Due to missing timelines on Unsupervised FSD and decreasing purchase rate, the automaker lowered its price.
However, with the recent progress of FSD v14 and Robotaxi, Musk must be sensing that Tesla is getting much closer to Unsupervised FSD. As the automaker’s confidence grows in its self-driving AI technology, Tesla will maximize its efforts to monetize it as muchas possible.
Tesla FSD has been more than a decade in development and has incurred billions of dollars in software, hardware, and infrastructure costs (data centers like Cortex).
With the recent progress in Tesla FSD’s capabilities in handling complex traffic scenarios and the successful completion of 7 billion miles of testing, Musk is positive for a strong reason.
It will take around 8 years for Tesla owners to break even on the $8,000 price tag of Full Self-Driving with a $99/month or $999/year subscription. But owning FSD for a lifetime is a better choice.
Tesla has offered FSD transfers from time to time. Last year, the automaker once again allowed Tesla owners to transfer the FSD package from their old vehicle to the new one for free. With subscriptions, this will also come to an end.
FSD subscription, however, gives an owner the flexibility to use it on a monthly basis and discontinue if it’s not needed temporarily or permanently.
Is this strategy going to generate more revenue or result in a setback for Tesla? Let us know your thoughts in the comments section below.
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