Elon Musk's Tesla Slashes Price Of Full Self-Driving Package By Half: '...Now $99/Month' - Tesla (NASDAQ:TSLA)

Tesla Inc. TSLA has announced a significant price cut for its Full Self-Driving or FSD-supervised package.

What Happened: On Friday, Tesla revealed that it is reducing the monthly subscription fee for its premium driver assistance system in the U.S. from $199 to $99. The CEO Elon Musk re-shared the announcement on X, formerly Twitter.

However, this move is in direct contrast to Musk’s earlier assertions that the FSD price would only increase as the system’s features and capabilities expanded. “The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval,” the tech mogul said back in 2020.

Why It Matters: This came after Tesla recently announced that its cars have driven one billion miles with the help of its full self-driving (FSD) software. Morgan Stanley analyst Adam Jonas sees this increasing to 400 billion miles per year or over 1 billion miles per day by 2030, offering Tesla a monumental dataset for machine learning and subsequently improving its attempts at autonomous driving.

Moreover, Tesla’s FSD technology has been the subject of several controversies. The California Department of Motor Vehicles formally accused Tesla in 2022 of engaging in deceptive practices around the marketing of its driver assistance systems, including its standard package Autopilot and FSD in the U.S.

Previously, it was reported that Tesla’s FSD technology has been deployed on approximately 2 million vehicles in the U.S., according to the company’s AI head.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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