Tesla raises price of autonomous driving to $ 12,000 as demand declines

Tesla continues to increase the price of its autonomous driving feature as demand continues to decline.

CEO Elon Musk took to Twitter on Saturday to announce that the price of FSD will rise to $ 12,000 on Jan. 17, from a current price of $ 10,000, but only in the United States.

The electronic driver assistance feature cost $ 5,000 when it launched in 2016, although at the time it was only a hardware package and had no functionality.

Musk also said that the price of FSD will continue to rise and that feature subscription prices will also rise. Tesla in 2021 began making the feature available as a subscription for $ 199 per month for cars with the basic autopilot and $ 99 when the enhanced autopilot is equipped. The subscription can be canceled at any time.

Despite the name, FSD only offers basic autonomous driving capabilities and requires driver supervision at all times as it is far from perfect and makes mistakes that need to be corrected. As a result, FSD only ranks level 2 on the SAE scale for autonomous driving ability. Level 3 is the first step where the Eye-Off functionality is available.

As Tesla continues to improve functionality and add functionality, it could be a decade or more before FSD can actually drive on its own without supervision 100% of the time, assuming an appropriate regulatory environment. will be in place. And the fact that FSD cannot be transferred to new vehicles, means owners who bought it have to stick with an older vehicle or risk losing it.

Tesla Model Y 2020

The market is no longer buying the hype and as a result the demand for FSD has dropped significantly. Forbes reported in December that the turnout was only 12% in 2021, down from 22% in 2020 and 37% in 2019.

Tesla predicts that FSD functionality and the regulatory environment will improve over time. The company is already testing a version of FSD capable of automatically managing bends in urban areas, always with driver monitoring. Some customers have received a beta version of this feature.

Tesla is also gearing up for a future where its cars can drive without anyone on board. The company has already announced the Tesla Network, which will be a network of driverless taxis where Tesla owners can have their cars offer elevators when not in use, creating a potential source of revenue for Tesla and them. owners. Musk said that at this point the FSD alone could be worth $ 100,000.

About Frances R. Smith

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