Tesla Full Self-Driving Subscription Reduced to $99 per Month

Tesla (TSLA) made a significant move late Friday by slashing the price of its Supervised Full Self-Driving (FSD) subscription from $199 to $99 a month. This decision, which was confirmed after online speculation, caused Tesla stock to rise slightly after the market closed.

The lower price point for FSD is expected to attract more subscribers, potentially doubling the revenue generated from this service. It may also entice more customers to opt for the monthly subscription instead of paying $12,000 for a lifetime service. At $99 a month, it would take just over 10 years to accumulate $12,000 in FSD subscription fees.

In addition to the price cut, Tesla has started offering free transfers of FSD to new Tesla vehicles. If FSD continues to show significant improvements and gains high demand, Tesla could raise prices substantially in the future.

It’s important to note that despite its name, FSD is a Level 2 system that still requires a human driver to be alert and ready to take control at any moment.

During Friday’s trading session, there was speculation circulating about the potential halving of the FSD subscription rate to $99. Tesla CEO Elon Musk even liked several posts on social media that supported this price reduction, so the official announcement did not come as a big surprise.

Following the news, Tesla stock saw a 0.7% increase in late trading. Despite a 2% decline during Friday’s market session, TSLA stock managed to gain 3.7% for the week, fueled by Musk’s promise of a robotaxi unveiling on August 8th. Investors and analysts will be closely monitoring the impact of this price cut on Tesla’s FSD subscriptions and overall revenue in the coming months.