Tesla has has officially lowered the monthly FSD subscription price to $99/month (from $199/month). This means it would be $1200 per year. If 50% adopt then that would be the $600 per car or an increase of 7.5% in profits.
This should massively increase adoption which increases the amount of data training and rate of improvement.
BREAKING: Tesla has officially lowered the monthly FSD subscription price to $99/month (from $199/month). pic.twitter.com/dr0YA9UBzK
— Sawyer Merritt (@SawyerMerritt) April 12, 2024
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If you price it at roughly $2 an hour on average for just an hour commute, I think people will pay, considering how much they already pay for their starbucks.
I thought you paid up front 12k for gas and you can buy used with fsd. Is it 12k plus a monthly subscription? That seems very unattractive. Can you get it used or not and only with a monthly subscription?
I wonder if they lower the lifetime subscription fee at purchase?
This is a good price point I think that there will be a good deal of people who sign up.
Tesla should also raise the value of FSD purchase for people who paid or would pay $12k by emphasizing that that’s a transferable software license and extends to Robotaxi level FSD and commercial use. $99 subscription is a great idea to increase use and exposure as well as revenue and data generated. Buying should be distinguished as an investment.
Tesla also needs to release a beta version of Tesla Network with various limits – probably just active in a few cities at first. That would test FSD in full robo taxi mode, controlled entirely remotely but with a driver in place to intervene.
Combined with a month free for every existing owner and new customer this will greatly increase the use rate. Tesla car insurance discounted below other providers as a package would further expand use.
I don’t believe this will sell as well as Tesla would like. (we’ll see!) People don’t generally like add on charges and are likely to spend $100 elsewhere every month. Is FSD really that exciting for individuals? I don’t think I really want it at all.
How can this be used as a productivity advantage? Sounds like you can’t work while being driven. Neither I assume you can treat it like a long haul flight where you can enjoy watching a moving on a long journey. Also no ability for banned drivers to continue using their cars e.g. for DUI, being allowed to travel in FSD mode. Sure its cool, but that alone does not incentivize a 50% uptake for this capability.
Amazing!
Tesla needs more drivers using their FSD to improve the software.
They get people to GIVE them $99/month to to help improve their software.
Tesla is NOT paying the drivers to use their pre-production software, the drivers are paying THEM!!!!
Elon Musk is a genius!
Unlike his competition that tried to develop autonomy with dedicated small fleets that they just burned money to support, Tesla has been doing this all along, getting customers to pay for cars on a grand scale with FSD hardware that stream data back for NN training. Similarly SpaceX largely developed reusable boosters using orbital launches where customers paid for the expendable launch and SpaceX could try to land the booster after it did that job for free. No private company could have afforded to pay the full cost of either R&D program.
I would be surprised by 50% adoption, the value of a supervised system doesn’t seem that high, but it would increase take rate and data collection.
If could reduce your insurance premiums by a significant fraction of the cost it could take off.
Before robotaxi, it is a gimmick worth about the same as adaptive cruise control – basically nothing.
After robotaxi, it could be the dominant value component of Tesla.
I think Tesla is trying to get more training data for FSD. Hence the free 1 month trial and now lowering of FSD subscription price.
agreed.