The price of Tesla’s monthly subscription for its Full Self-Driving (Supervised) software has been reduced by 50%, now costing $99 per month instead of the previous fee of $199. This move comes as Tesla aims to make its electric vehicles (EVs) more appealing following a challenging financial quarter at the start of 2024.
In 2021, Tesla introduced a $199 monthly upgrade fee for its self-driving system, which was still in beta testing at that time. Adding Full Self-Driving (Supervised) to a Tesla vehicle outright would cost $12,000. With the current subscription rate, it would take 10 years to reach this same cost. Therefore, the new pricing seems more reasonable for customers who prefer installment plans.
The previous $199 rate also had its advantages, providing (self-)drivers with a five-year period before accumulating $12,000 in fees. However, the recent reduction in price makes the subscription an even more attractive option.
This price adjustment aligns with Tesla’s efforts to enhance the appeal of its EVs and boost its stock value after experiencing a decline in EV shipments during the first months of 2024. For the first time since 2020, Tesla’s EV deliveries showed a year-over-year decrease, dropping significantly compared to the previous quarter. Analysts initially predicted that Tesla would ship 449,080 EVs in Q1 2024, but the actual number stood at 386,810.
To mitigate the impact of this decline in shipments, Tesla provided a free trial of its Full Self-Driving (Supervised) software to its drivers towards the end of 2023. This move was seemingly aimed at improving the company’s financial performance before the reporting period. Furthermore, as of March 2024, Tesla salespeople in North America are obligated to demonstrate Full Self-Driving (Supervised) to anyone purchasing a vehicle.
Tesla has yet to disclose specific shipment numbers for its highly anticipated Cybertruck, which began its rollout in late 2023. Meanwhile, the company is also gearing up to release a “next-generation low-cost” EV in 2025, which could potentially further revolutionize the market.
In conclusion, Tesla’s decision to significantly reduce the monthly subscription price for its Full Self-Driving (Supervised) software demonstrates its commitment to customer satisfaction and its determination to ease financial concerns following a decline in EV shipments. This move makes the subscription a more affordable option for Tesla owners, enabling them to access advanced driving features without a significant upfront cost. Additionally, Tesla’s plans for new EV releases, such as the Cybertruck and the upcoming low-cost model, indicate its continuous efforts to remain at the forefront of the electric vehicle industry.
Source link
