tesla (TSLA) late Friday reduced the price for supervised full self-driving from $199 to $99 per month, confirmed online chatter. Tesla stock fell slightly early Monday.
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Lower prices should lead to more Tesla FSD subscriptions, but the tax rate would need to double to generate more revenue.
Lower prices may also encourage more people to subscribe to FSD rather than pay $12,000 for lifetime service. At $99 per month, it would take him a little over 10 years to pay off his $12,000 FSD subscription.
However, if FSD shows dramatic improvements and attracts significant demand, Tesla will likely raise prices significantly.
EV giant Haas even offered free FSD transfers to new Tesla cars. On Saturday, Tesla suspended its latest FSD free transfer.
Despite its name, FSD is a Level 2 system that requires a human driver to be alert and ready to take over driving at any time.
In late March, the EV giant made one month’s worth of FSD available for free to all compatible vehicles.
During Friday’s session, there was talk of FSD subscription fees being cut in half to $99. Tesla CEO Elon Musk has liked multiple posts on his social site X supporting the $99/month FSD.
So the actual announcement wasn’t a big surprise.
Last weekend, Tesla reportedly halted deliveries of the Cybertruck, presumably to address another issue with the recently launched EV.
There is also talk online about Tesla’s significant layoffs.
Tesla stock plummets
Tesla stock fell 0.5% in early trading Monday.
Shares fell 2% to 171.05 in stock market trading on Friday. TSLA stock rose 3.7% for the week, boosted by Musk’s promise to unveil robot taxis on August 8th.
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