Bring back EAP (to USA)

[glide]

I can't argue with ignorance, Glide. If Tesla loses money because the price is too high (low demand), then the price comes down. If the price is too low (high demand), then the price comes up.

The variable we don't know is supply, which is the cost associated with supplying FSD (engineers, software designers, server farms for simulations, database and administrators, etc.). We can infer from the rising cost of FSD that the supply/demand curve was leaning towards higher demand and lower supply. If we stabilize at $12k for FSD, then we've reached the market price. You can see the pattern forming. Market forces, such as inflation, employment figures, discretionary income, etc. will also adjust prices.

To be clear, I wouldn't mind if the price comes down, but we don't get to set the price, the market does. Me yelling at the grocery store that milk and bread are too expensive isn't going to magically make them cheaper.

If you’re only selling 12% of your milk and bread, your supermarket is going out of business.

I can guarantee you the cost of FSD development necessitates a take rate of greater than 12%. In fact, Tesla openly stakes it’s business on the viability of autonomy.

I really think you need to take one of those courses you recommended. Talk about ignorance…

 

[Dewg]

If you’re only selling 12% of your milk and bread, your supermarket is going out of business.

I can guarantee you the cost of FSD development necessitates a take rate of greater than 12%. In fact, Tesla openly stakes it’s business on the viability of autonomy.

I really think you need to take one of those courses you recommended. Talk about ignorance…

Based on your math Tesla needs to sell 100% to be successful, so every person who orders a new Tesla needs to also order FSD. That would mean Tesla would just bake the cost of FSD into the price of the car. That's what "standard features" are. AP was an add on, but was baked into the cost so it's now standard (and therefore 100% as you suggested).

A decision was made to keep FSD a separate package, probably because making it standard would raise the cost of the vehicle beyond what the market will bear. Same as any car company that has multiple trim levels with available options. Not everyone wants the technology package on a new Corolla, so the take rate isn't 100%, but we don't say it's overpriced. It's what the market will bear.

 

[RyanS]

AP to EAP, you are not getting much. In my case, I went from EAP to AP and I don’t miss much. I am not sure if I would even spend a few hundreds dollars for EAP gimmicks. I don’t really get it. Why people would pay $12k for FSD that doesn’t even work

 

[glide]

Based on your math Tesla needs to sell 100% to be successful, so every person who orders a new Tesla needs to also order FSD. That would mean Tesla would just bake the cost of FSD into the price of the car. That's what "standard features" are. AP was an add on, but was baked into the cost so it's now standard (and therefore 100% as you suggested).

A decision was made to keep FSD a separate package, probably because making it standard would raise the cost of the vehicle beyond what the market will bear. Same as any car company that has multiple trim levels with available options. Not everyone wants the technology package on a new Corolla, so the take rate isn't 100%, but we don't say it's overpriced. It's what the market will bear.

Dude. Just stop. You sound like a mindless fanboi that didn’t make it through Econ or Business 101.

A 12% take rate on what is supposed to be your companies defining feature is laughably bad.

 

[dub1ous]

Wish dumb summing and auto park was standard as it in lots of other EVs.

 

[Twiglett]

Dude. Just stop. You sound like a mindless fanboi that didn’t make it through Econ or Business 101.

A 12% take rate on what is supposed to be your companies defining feature is laughably bad.

he's right though - when they included AP in the standard build, they increased the cost of the car at the same time.
So they are now covering the hardware cost of including the needed hardware for AP - there is the 100% take rate.
Nobody here can make definitive statements about what take rate Tesla needs with FSD to cover the software development costs.
Similarly, nobody here can make definitive statements on the costs for the worldwide supercharging infrastructure.
Yet both are obviously baked into the cost of the car and Tesla still manages to post decent profits.
Maybe the FSD price keeps increasing to make sure its funded - none of us know.

[edit]
beer mat math, current take rate nets Tesla $1.3 billion a year

 

[Dewg]

Dude. Just stop. You sound like a mindless fanboi that didn’t make it through Econ or Business 101.

A 12% take rate on what is supposed to be your companies defining feature is laughably bad.

 

[glide]

he's right though - when they included AP in the standard build, they increased the cost of the car at the same time.
So they are now covering the hardware cost of including the needed hardware for AP - there is the 100% take rate.
Nobody here can make definitive statements about what take rate Tesla needs with FSD to cover the software development costs.
Similarly, nobody here can make definitive statements on the costs for the worldwide supercharging infrastructure.
Yet both are obviously baked into the cost of the car and Tesla still manages to post decent profits.
Maybe the FSD price keeps increasing to make sure its funded - none of us know.

[edit]
beer mat math, current take rate nets Tesla $1.3 billion a year

And my back of the napkin math says they raised the prices of their flagship vehicles by 25% since last year. So…now what?

 

[Dewg]

And my back of the napkin math says they raised the prices of their flagship vehicles by 25% since last year. So…now what?

New Car Price Keeps Climbing, with Average Now at Almost $47,100

Reduced supply, increased demand: It all adds up to higher prices for the new-car-buying public.

www.caranddriver.com

 

[dbldwn02]

If they're bringing back EAP, it makes me think FSD take rate has crashed drastically. Probably due to all the price increases.

 

[DrWhoDey]

beer mat math, current take rate nets Tesla $1.3 billion a year

If that's accurate, and if making EAP available at half the FSD price results in 3x the take rate, that's $2B.

 

[glide]

If they're bringing back EAP, it makes me think FSD take rate has crashed drastically. Probably due to all the price increases.

Not sure it can crash much below where it is. If the take rate is below 10%, and they are still wasting all these development resources on it, the company has a serious, serious problem (beyond Elon still being in charge).

 

[TSteve]

If they do bring back EAP, does it start to receive improvements to its features? Would it just be some sort of fork of FSD? I'm so curious now.

 

[dbldwn02]

If they do bring back EAP, does it start to receive improvements to its features? Would it just be some sort of fork of FSD? I'm so curious now.

I'm guessing it'll be exactly the same software as FSD Beta but without auto steer on city streets. And maybe a couple other useless features as well.

 

[BitJam]

I'm guessing it'll be exactly the same software as FSD Beta but without auto steer on city streets. And maybe a couple other useless features as well.

IIUC stopping at stop signs and stop lights (and dinging when the light turns green) will also be missing. IMO these are very useful features, perhaps more useful than what is currently added with EAP. If these were included then I would be very tempted.

 

[Goose66]

I'm guessing it'll be exactly the same software as FSD Beta but without auto steer on city streets. And maybe a couple other useless features as well.

Traffic Light and Stop Sign Control and AutoSteer on City Streets is what's missing in Australia. I'm frankly surprised to see Smart Summon in EAP.

 

[Edsonbarron]

It’s back!

 

[adam19]

Looks like EAP is back for $6k:

Sorry Tesla, but EAP is not worth $6k...

 

[E90alex]

Looks like EAP is back for $6k:

View attachment 820330

Sorry Tesla, but EAP is not worth $6k...

Yeah I was hoping for like $3k…

 

[SDM44]

Yup, they brought it back at 8pm PST tonight. A buddy of mine who works at Tesla was saying they were going to announce something tonight, and from the podcasts & chat in the FB groups from earlier this week, it was likely going to be EAP.

IMO, definitely not worth it for $6k, especially since I don't even use the free AP in my car. I think Tesla would've done better if they also offered it as a monthly subscription for half the cost of FSD (which is still expensive), but at least I would then try out the Summon feature for a month to see if it's really worth the hype.