Tesla FSD Monthly Subscription Coming Soon, Musk Suggests

Tesla Inc TSLA CEO Elon Musk said Sunday that the automaker will release a subscription service for its full self-driving software early next year.

What Happened: The billionaire entrepreneur made the disclosure in response to a query by a Twitter user.

In October, Musk had said Tesla would make the FSD software available on a monthly subscription basis sometime in 2021.

The software is likely to be priced for no less than $100 per month and may cost more than that, Electrek reported. Despite the steep price, some users may be interested in a subscription service. 

See Also: Tesla's Big Advantage Over Legacy Automakers? Software, Says Munster

“We do understand that some customers who have ownership or have leased their vehicles did not purchase that option front. And so this will enable those customers to spread out the cost of ownership of FSD or subscription over time,” said Tesla’s Chief Financial Officer Zachary Kirkhorn at the company’s Q1 conference call.

Musk said last week that the FSD was due to get “absurdly good” in the future.

Price Action: Tesla shares closed nearly 6% higher at $695 on Friday and fell almost 2.6% in the after-hours session to $677.

Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.