Tesla Raising Price of FSD to $15,000, AI Director States "We Can Build a Car That Never Crashes"

After FSD Beta 10.69 successfully rolled out to Tesla owners last night, Elon Musk tweeted that once it is released to all FSD Beta participants, the price of the FSD package will be raised from $12,000 to $15,000 on September 5th. The current price will be honored for any orders placed before September 5th.

https://twitter.com/x/status/1561362640261226499

Another price increase seems like a reassurance that FSD will come to fruition soon. Tesla's Autopilot Software director Ashok Elluswamy shares additional information regarding the progress Tesla has made in FSD Beta 10.69: a huge change introduced in this update are "Occupancy Networks," which Elluswamy states are "our approach to solve general obstacle detection and using it to enable sophisticated collision avoidance." He claims that these occupancy networks are so important in solving self-driving that "when we execute on this plan we can build a car that literally never crashes."

https://twitter.com/x/status/1561151207858573312

https://twitter.com/x/status/1561151574201602048

Tesla enthusiast @WholeMarsBlog on Twitter shares their first 35-minute drive with FSD Beta 10.69, highlighting the significant changes Tesla has made in this update.

https://twitter.com/x/status/1561273991217631232

FSD Beta tester Chuck Cook @Chazman (who also snuck into the v10.69 release notes) also shared a video testing how FSD Beta 10.69 handles turns. "It wasn't very smooth, but it was adjusting its course so it can continue without a full stop," referring to the unprotected left turn his car had just executed.

https://twitter.com/x/status/1561374286115381249

Credit: Chuck Cook on YouTube

We're hoping all the changes that need to be fixed by 10.69.2 will provide more reasoning for Tesla's sudden price increase in FSD Beta 10.69. We can only hope this means Tesla is seriously getting closer to solving the self-driving problem, and we will certainly see how the changes allowing video and map data to simultaneously help FSD Beta learn to drive will affect not only how it drives now, but in the near future.

 

[Dan D.]

She can stay afloat with the first four compartments breached, but not five.

Even though that's a fictionalized account of true events the quote from Titanic does seem to hold to the historical record.

Titanic was described in (pre?) and post disaster media as "practically unsinkable", "unsinkable". The key word "unsinkable" being isolated without understanding of technical disclaimers about number of compartments or iceberg gash size.

That's the risk of using excessively positive marketing speak. But it's also known by crafty people; get the sound-bite. Nobody is interested in disclaimers (until after the disaster).

 

[EVNow]

I‘m more inclined to think that they put EVERYTHING into this 15K FSD, and now make TACC/EAP an upcharge, thereby lowering the starting price of more M3 and MY so as to qualify for the $7500 tax credit with more vehicles. Currently I think there is only ONE M3 and ONE MY that might even qualify. The more they can take out of the base retail price and make an easy after purchase upcharge, the more vehicle VIN’s they can have qualify for federal tax credits in 2023. I actually think we might soon see lower price points for lower battery spec’s, that come with an always available option to pay to unlock more battery capacity after purchase.

I'm sure there will be changes because of the tax credit thing. Tesla has done weird stuff like this in other countries - they even sold software limited battery capacity models.

 

[EVNow]

That's the risk of using excessively positive marketing speak. But it's also known by crafty people; get the sound-bite. Nobody is interested in disclaimers (until after the disaster).

I'd say its not even marketing speak. Its the way we naturally speak - if someone recorded us 24x7 and parts taken out of context - a LOT of it can be ridiculed.

As I said above haters are going to have a field day with this uncrashable soundbite. They will milk it for all its worth like the worst political hack.

 

[ZenRockGarden]

I‘m more inclined to think that they put EVERYTHING into this 15K FSD, and now make TACC/EAP an upcharge, thereby lowering the starting price of more M3 and MY so as to qualify for the $7500 tax credit with more vehicles. Currently I think there is only ONE M3 and ONE MY that might even qualify. The more they can take out of the base retail price and make an easy after purchase upcharge, the more vehicle VIN’s they can have qualify for federal tax credits in 2023. I actually think we might soon see lower price points for lower battery spec’s, that come with an always available option to pay to unlock more battery capacity after purchase.

Problem with that is there's no cost reduction in removing AP from the cars they are shipping - they would simply take a $3k hit to profit margin on each AP-less car made.

 

[ElectricIAC]

Problem with that is there's no cost reduction in removing AP from the cars they are shipping - they would simply take a $3k hit to profit margin on each AP-less car made.

I think enough people would opt for AP (even as a monthly sub of $49) to make it worth it for them.

 

[tivoboy]

Problem with that is there's no cost reduction in removing AP from the cars they are shipping - they would simply take a $3k hit to profit margin on each AP-less car made.

It would be a gamble for sure, but they probably could somehow forecast with confidence just how many people would actually re-buy the TACC/EAP package after the fact and at possibly even higher margin contribution rates. Give it a short window, with a free starter offer - 90 days of free use, then it expires unless you buy it at 3K. I think there are going to be many of these little gamifications of pricing and ad-hoc purchase options across many OEM now that we have retail pricing caps for what is still a significant federal tax credit for many

 

[Dan D.]

I'd say its not even marketing speak. Its the way we naturally speak - if someone recorded us 24x7 and parts taken out of context - a LOT of it can be ridiculed.

As I said above haters are going to have a field day with this uncrashable soundbite. They will milk it for all its worth like the worst political hack.

Quite true, the media (and lawyers) are very good at capturing our off-the-cuff remarks.

But the crafty person plants those remarks on purpose. e.g. marketing Full Self Driving as they do, while muttering sotto voce "read the disclaimers".

 

[_Redshift_]

I‘m more inclined to think that they put EVERYTHING into this 15K FSD, and now make TACC/EAP an upcharge, thereby lowering the starting price of more M3 and MY so as to qualify for the $7500 tax credit with more vehicles. Currently I think there is only ONE M3 and ONE MY that might even qualify. The more they can take out of the base retail price and make an easy after purchase upcharge, the more vehicle VIN’s they can have qualify for federal tax credits in 2023. I actually think we might soon see lower price points for lower battery spec’s, that come with an always available option to pay to unlock more battery capacity after purchase.

$15K is not an easy after purchase upcharge, as you put it. Sure, the $7500 tax credit might play into the decision. Fact remains that FSD in the current form is not worth even $7500.

 

[ElectricIAC]

$15K is not an easy after purchase upcharge, as you put it. Sure, the $7500 tax credit might play into the decision. Fact remains that FSD in the current form is not worth even $7500.

I wouldn’t even value it at the $5,000 low point it went for when Tesla desperately needed the money.

 

[_Redshift_]

I'd say its not even marketing speak. Its the way we naturally speak - if someone recorded us 24x7 and parts taken out of context - a LOT of it can be ridiculed.

As I said above haters are going to have a field day with this uncrashable soundbite. They will milk it for all its worth like the worst political hack.

Sure, sure. All those who criticize Tesla are haters and motivated by politics.

 

[phonetele226]

I'm sure there will be changes because of the tax credit thing. Tesla has done weird stuff like this in other countries - they even sold software limited battery capacity models.

I don’t think Tesla really cares about bringing prices down to qualify for any tax credit. They are selling everything they make. The name of the game is profit. Always has and always will be.

 

[ElectricIAC]

I don’t think Tesla really cares about bringing prices down to qualify for any tax credit. They are selling everything they make. The name of the game is profit. Always has and always will be.

I think the shock comes from having seen Tesla bottom out in pricing their product to ramping it back up to 2018 levels and above over the last two years.

 

[ZenRockGarden]

It would be a gamble for sure, but they probably could somehow forecast with confidence just how many people would actually re-buy the TACC/EAP package after the fact and at possibly even higher margin contribution rates. Give it a short window, with a free starter offer - 90 days of free use, then it expires unless you buy it at 3K. I think there are going to be many of these little gamifications of pricing and ad-hoc purchase options across many OEM now that we have retail pricing caps for what is still a significant federal tax credit for many

The main reason to try and offer a loss-leader discount de-featured product would be to drive up demand, sell more cars than they otherwise could.

But Tesla doesn't have that issue. They sell every car they can make with the current pricing.

 

[Gulfcoaster]

First they should learn how to build a car.

LOL, true

 

[phonetele226]

It really is quite easy to make a car that never crashes with FSD. When the AI can’t decide what to do simply shut down and do nothing. Let the driver decide what to do. No action by the software means no crashes.

 

[ElectricIAC]

It really is quite easy to make a car that never crashes with FSD. When the AI can’t decide what to do simply shut down and do nothing. Let the driver decide what to do. No action by the software means no crashes.

Or it does something so dumb that you never trust it again.

 

[2101Guy]

speaking of promises...whens the update to activate yoke horn via airbag that Elon promised like, what, a YEAR AGO.

 

[ElectricIAC]

speaking of promises...whens the update to activate yoke horn via airbag that Elon promised like, what, a YEAR AGO.

Robotaxi was supposed to be a thing two years ago if you believe Elon.

 

[2101Guy]

despite the fact that NO ONE has ever seen/confirmed...any sort of switch behind the Yoke airbag...

 

[ItsNotAboutTheMoney]

Wow, now it’s $15,000! How much will they ask for FSD when it really ready and works In all conditions?

At this rate of inflation, it'll cost the same as Waymo.