Tesla has made a significant move in the realm of autonomous driving technology, cutting the price of its Full Self-Driving (FSD) software by a substantial third, now priced at $8,000 from the previous $12,000. This decision comes as CEO Elon Musk amplifies the company’s focus on self-driving capabilities, viewing it as a potential revenue driver for the world’s leading automaker. However, despite Musk’s optimism, the journey towards achieving full autonomy has been fraught with challenges, including increased regulatory and legal scrutiny.
In a bid to further bolster its autonomous ambitions, Musk recently announced plans to unveil Tesla’s robotaxis on August 8th, following reports of the company shifting its attention away from a budget-friendly mass-market vehicle in favor of prioritizing robotaxis. Additionally, Tesla has introduced a new subscription model for the FSD feature, allowing customers the option to pay $8,000 upfront or subscribe for $99 per month, with a recent price reduction from the original $199 monthly subscription fee.
This move comes amidst a broader strategy of price adjustments across Tesla’s product lineup, as the company contends with declining sales and heightened competition in the electric vehicle market. In major markets like China, Tesla has slashed prices by nearly $2,000, mirroring similar price cuts implemented in the United States, underscoring the company’s efforts to remain competitive in the rapidly evolving automotive landscape.