Tesla is reducing subscription fees for its Full Self-Driving (FSD) driver assistance program in a reflection of the company's ongoing financial difficulties. The company reduced the price to $99 per month, down from $199 where it has been since at least 2021.
Tesla announced the price adjustment in a post on (The company has been criticized for failing to include proper monitoring of drivers and other protections against over-reliance on the system.)
Tesla previously charged owners $199 per month to subscribe to FSD. (The driver assistance system was also available for a one-time fee of $12,000.) FSD was also available as a $99 monthly subscription to owners who already had Autopilot, which is less capable than FSD. But Tesla now offers Autopilot as standard on all new car purchases, eliminating the need for a price difference.
The company also recently started pushing a one-month free trial of FSD in an attempt to attract more customers to use it. Tesla has reportedly tasked its service center employees with taking all potential buyers on a test ride with the FSD, under a direct order from Elon Musk.
The company also recently started pushing a one-month free trial of FSD in an attempt to attract more customers to use it
But FSD is not a perfect system. Some Tesla owners praise its capabilities, but others describe them as erratic and unreliable. The company has released several software updates in an attempt to improve its capabilities, with the latest version (version 12) claiming it can finally take advantage of what Musk calls “end-to-end neural networks.”
Most automakers' driver assistance systems are intended for limited use on highways, while Tesla stands alone in encouraging its customers to use FSD on local roads with traffic lights, intersections and vulnerable road users. The system controls acceleration and deceleration, makes turns – including unprotected left turns, which are very difficult for automated systems – and recognizes traffic lights and other road signs. FSD also requires drivers to pay attention to the road and take control of the vehicle on command.
Tesla's driver assistance technology has pushed the boundaries of what is safe for customers to use on public roads and has come under scrutiny by federal regulatory agencies. Federal regulators are investigating 16 crashes in which Tesla owners using Autopilot crashed into stationary emergency vehicles, resulting in 15 injuries and one death. Both Autopilot and FSD were recently recalled, with the company pushing software updates that safety experts called inadequate.
Tesla's financial difficulties may be the reason behind the recent price cuts. The company's quarterly vehicle deliveries fell for the first time in years, increasing pressure on Tesla to increase revenue through its software services as a way to compensate.
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