FSD Subscription vs Pay For Use

[SharpKnife]

Considering FSD usage monitoring is technologically possible, I wonder if anyone thinks a pay per use model would be more suitable than subscription?


Subscription

Pros​

• Fixed monthly expense
• Easy accounting
• More revenue for TSLA

Cons​

• If FSD not good, harder to get a customer to restart subscription
• Assumes the price is worth it for a diverse set of drivers

Pay Per Use

Pros​

• Engage any time, at a smaller cost
• No commitment
• Easier to re-engage if not used for a while
• Realtime feedback on customer usage

Cons​

• Lower Revenue for TSLA
• FSD quality must be higher

 

[TLLMRRJ]

Just think emotionally how people would feel about pay per use in the real world. They would have to go through this horrible internal discussion of whether or not they pay themselves $XX to turn the steering wheel, or pay Tesla $XX to do it every time they go for the double tap of the stalk.

What a nightmare.

 

[EVRider-FL]

Not more suitable for Tesla, which is why they’ll never do it.

 

[t3sl4drvr]

Would start to make sense with robotaxis: There a certain % of revenue would be paid to Tesla (say 50% after tax) and would cover driving, insurance, payment processing, ... The other half (after tax) would be cover car finance, wear, electricity and profit to owner.

 

[ChicagoSox]

Considering FSD usage monitoring is technologically possible, I wonder if anyone thinks a pay per use model would be more suitable than subscription?


Subscription

Pros​

• Fixed monthly expense
• Easy accounting
• More revenue for TSLA

Cons​

• If FSD not good, harder to get a customer to restart subscription
• Assumes the price is worth it for a diverse set of drivers

Pay Per Use

Pros​

• Engage any time, at a smaller cost
• No commitment
• Easier to re-engage if not used for a while
• Realtime feedback on customer usage

Cons​

• Lower Revenue for TSLA
• FSD quality must be higher

Dont give Tesla any new Ideas about Micro Transactions -

 

[eric.freeman]

Question for anyone, when you buy the subscription, how long does it take to download, SA said it takes hours, but I heard people got the update within minutes after purchase, the car would reboot and boom?

 

[Supcom]

FSD software (not FSD beta) is already installed in your car. When you subscribe or purchase, the license is activated immediately.

 

[eric.freeman]

FSD software (not FSD beta) is already installed in your car. When you subscribe or purchase, the license is activated immediately.

Perfect thanks!

 

[EVNow]

Considering FSD usage monitoring is technologically possible, I wonder if anyone thinks a pay per use model would be more suitable than subscription?


Subscription

Pros​

• Fixed monthly expense
• Easy accounting
• More revenue for TSLA

Cons​

• If FSD not good, harder to get a customer to restart subscription
• Assumes the price is worth it for a diverse set of drivers

Pay Per Use

Pros​

• Engage any time, at a smaller cost
• No commitment
• Easier to re-engage if not used for a while
• Realtime feedback on customer usage

Cons​

• Lower Revenue for TSLA
• FSD quality must be higher

The answer is Netflix.

BTW, this idea that TSLA would end up with lower revenue on Pay Per use is not a given. Look at AWS / Azure revenues.

In general individuals prefer fixed subscription and businesses prefer usage based. Businesses have enough data and controls to monitor and figure out which one would be cheaper etc. and may prefer usage based billing. It is too involved and cumbersome for individuals. They would vastly prefer subscription over pay per use (except for things used rarely like supercharging or if Tesla allowed people to "rent" AP on a daily rate for road trips).

 

[ranss12]

I'd like to subscribe to FSD, but I'd like to know my 'safety score' before I do. Why doesn't Tesla generate a safety score for everyone and display it on the Safety or Autopilot screen? I think quite a few people would get FSD if they thought they'd be eligible for FSD Beta. Seems like an easy software feature to offer and as a side benefit, Tesla owner's might drive a little more safely.