Tesla price war: Elon Musk cuts the price of driving assistants in half

Tesla Model 3 and Model Y at the Everything Electric London 2024 show.

John Keeble/Getty Images

Tesla has reduced the price of its FSD Managed driver assistance program from $199 to $99 per month.

Elon Musk once said that the cost of Tesla’s FSD will only increase as it improves.

The discount comes after Tesla missed first-quarter earnings expectations.

This is a machine translation of an article from our American colleagues at Business Insider. It was automatically translated and checked by a real editor.

Tesla announced price cuts to its driver assistance program on Friday after car sales for the first quarter of 2024 he fell short of expectations they were

Subscriptions to Tesla’s full self-driving software — now called FSD (Supervised) to remind the driver that the system needs their attention at all times — are now offered for $99 a month , up from $199 a month.

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This is just one of several steps Tesla has taken recently to attract more people to the company’s Level 2 self-driving system, which requires the driver to constantly monitor the car.

Elon Musk recently issued an internal memo instructing all Tesla employees to refer new customers to one short test drive with FSD to take with you before handing over the car after delivery.

He justified this by saying that “almost nobody knows how well FSD (monitored) works,” says the memo, which Business Insider confirmed.

In March, the company also announced that it was offering it to all US customers for free One month trial of the beta version of FSD could provide.

The newly announced discount could benefit Teslas controversial driver assistance program more accessible to its customers, which would be useful when the company fails to meet the expectations of investors and continues to work on improving its programs.

In early April, Tesla announced that it delivered fewer cars in the first three months of 2024, selling 386,800 vehicles — about 90,000 less than investors expected. The company’s first quarter results mark a first Year-over-year sales decline for almost four years, BI reported.

More customers using Tesla’s FSD could also mean more data the company can collect to improve its softwareso TechCrunch.

The discount also represents a departure, albeit a temporary one, from Musk’s expectation that Tesla’s fully self-driving system would be more expensive.

In 2020 Musk said on X“The value of the FSD could reach $100,000 as it nears full autonomous capability with regulatory approval.” It is unclear if Musk was referring to the price per vehicle.

For a while, the prediction came true when Musk raised the price of FSD’s lifetime service to $12,000 to $15,000 in 2022, offering a monthly subscription option for $199. Last year, however, the company reduced the price of life to $ 12,000.

A Tesla spokesman did not respond to a request for comment.

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