Tesla announced a reduction in the subscription price of its premium driver assistance system, known as Full Self-Driving (FSD), from $199 to $99 per month for customers in the United States. This price cut goes against CEO Elon Musk’s previous statements that the cost of FSD would only increase as more features and functionality were added to the system. Musk had claimed that the value of FSD could exceed $100,000 per car as it approached full self-driving capability with regulatory approval. Despite the name, Tesla’s current FSD option does not make their vehicles autonomous or functional as robotaxis.
The company uses sensors and cameras to monitor driver attentiveness and will audibly alert drivers to keep their eyes on the road or hands on the wheel while using the FSD system. In response to accusations from the California Department of Motor Vehicles about deceptive marketing practices, Tesla has emphasized that its FSD system is supervised and not fully autonomous. While Tesla has promised shareholders and customers a self-driving robotaxi for years, other companies like Waymo and Didi have already begun operating commercial robotaxi services in multiple cities. Despite the claims made by Musk, Tesla has not yet developed a fully autonomous car.
To boost sales, Musk has mandated that all sales and service staff demonstrate FSD for customers before delivering their vehicles, and has offered a one-month free trial of the system to all customers in North America. However, responses to the latest version of FSD have been mixed, with some customers impressed by its capabilities and others expressing safety concerns and switching off the trial. Musk has also promised to unveil a new dedicated robotaxi on August 8th, although Tesla unveilings are primarily marketing events and do not necessarily indicate when production and deliveries will begin.
Despite Tesla’s efforts to promote its FSD system, questions remain about the system’s capabilities and safety. While Musk has made grand claims about the potential of autonomous driving technology to transform Tesla into a company with a $500 billion market cap, doubts persist about whether Tesla will achieve true full self-driving capability in the near future. The company’s decision to reduce the subscription price of FSD raises further questions about the system’s value and functionality, and whether Tesla will be able to deliver on its promises of a self-driving future.
