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.

 

[ItsNotAboutTheMoney]

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

Ironically, Tesla removed the option of dumb cruise control you can trust shortly after the SR was released.

 

[Dan D.]

activate yoke horn via airbag

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

They are going to use the internal camera to detect your hand pushing the airbag. Works for video game consoles right?

 

[sids911]

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

I would. I've seen demonstrable improvement in FSD since it went beta. I only want Tesla to allow their users to either a) transfer the product you purchase to a new car or 2) get a good discount for previous FSD customers if they want it on their new Tesla.

In all probability this will result in take rate improving, negating any hit on upfront capital loss for Tesla.

 

[2101Guy]

I would. I've seen demonstrable improvement in FSD since it went beta. I only want Tesla to allow their users to either a) transfer the product you purchase to a new car or 2) get a good discount for previous FSD customers if they want it on their new Tesla.

In all probability this will result in take rate improving, negating any hit on upfront capital loss for Tesla.

I get it. But to some (like me) its not going to be worth much until it does all that the CEO said it will do. (years ago). Its cute to watch it on youtube as it maneuvers around San Fran and what not. Nice to see it improving and being fire and all of that. But As long as I have to pay attention at all, its not worth much to me beyond standard AP. I want it to have the capability to 100% drive itself(doesnt even have to be across country, just across the city) , and do so "safer than a human"(c)Tesla and ideally, "be crash proof"(c)Tesla.

Then..its worth $12k..to ME. (Still not $15k. I'd just take an uber if I absolutely positively didnt want to drive at all. Or, have my wife do the driving most likely)

 

[qdeathstar]

Tesla must really want to get out of selling full self driving. I cannot imagine the sucker who is going with pay 15k and the associated taxes when you can rent it for 300/mo

 

[ElectricIAC]

Tesla must really want to get out of selling full self driving. I cannot imagine the sucker who is going with pay 15k and the associated taxes when you can rent it for 300/mo

Only a jackass would pay $300/mo for FSD sub when you can add it to a 72mo loan for ~$225/mo.

 

[qdeathstar]

Only a jackass would pay $300/mo for FSD sub when you can add it to a 72mo loan for ~$225/mo.

You aren’t counting the present value of property taxes, sales tax, ect.

If you keep you car for six years I guess it is close…

But I usually end up trading mine in every 4-5…

 

[uscbucsfan]

You aren’t counting the present value of property taxes, sales tax, ect.

If you keep you car for six years I guess it is close…

But I usually end up trading mine in every 4-5…

It's different in every state, but in SC the sales tax is capped at $500 for vehicles, regardless of cost and FSD isn't factored into property tax. They use Kelly blue book fair market value of the car model.

 

[arbitrage000]

Seeing the option to purchase FSD on my account at $10,600 CAD (~ $8000 USD) certainly is tempting seeing it will be $15K before I even get my car.
To date we don't have a subscription option in Canada. If I had a subscription option I'd go that route for sure.

I watch a lot of the FSD Beta YT channels and I do think the system is pretty impressive. However I don't like that it isn't transferable to a new car and it seems that you have to be just as alert/attentive when using it as you would if not using it...if not more so. Plus I like driving and don't really see the need to have the car drive me around town. I think having regular AP for long highway drives (which I only do 1-2 times a year) will be good enough for my use. If we get subscription option in Canada then I will surely subscribe to FSD for a few months every so often to experience it myself. But I feel even at my locked in price it just won't be worth it at this time.

 

[ElectricIAC]

Seeing the option to purchase FSD on my account at $10,600 CAD (~ $8000 USD) certainly is tempting seeing it will be $15K before I even get my car.
To date we don't have a subscription option in Canada. If I had a subscription option I'd go that route for sure.

I watch a lot of the FSD Beta YT channels and I do think the system is pretty impressive. However I don't like that it isn't transferable to a new car and it seems that you have to be just as alert/attentive when using it as you would if not using it...if not more so. Plus I like driving and don't really see the need to have the car drive me around town. I think having regular AP for long highway drives (which I only do 1-2 times a year) will be good enough for my use. If we get subscription option in Canada then I will surely subscribe to FSD for a few months every so often to experience it myself. But I feel even at my locked in price it just won't be worth it at this time.

It isn’t. Your money is safer sitting on a park bench in Portland.

 

[Brou]

They are going to use the internal camera to detect your hand pushing the airbag. Works for video game consoles right?

Might as well remove the steering wheel/yoke and gas pedal.

We can just point in the direction we want to go and say "vroom vroom" to accelerate.

 

[ZenRockGarden]

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

I don't see this as a fiscal move - Tesla is just ego-involved with their undelivered dream of their cars driving themselves and earning money for their owners by being robo taxis when idle. It does not appear to be a realistic dream right now. But Tesla will probably sell fewer copies of FSD and maybe not even break even as they raise the price, and they don't have to care since they are making over a BILLION in profit each quarter.

This is all about ego and a dream.

 

[ZenRockGarden]

Tesla must really want to get out of selling full self driving. I cannot imagine the sucker who is going with pay 15k and the associated taxes when you can rent it for 300/mo

That's an interesting point. At $15k, the break-even point for renting FSD is over 4 years.... a lot of Tesla owners change cars faster than that.

 

[EVNow]

Only a jackass would pay $300/mo for FSD sub when you can add it to a 72mo loan for ~$225/mo.

$300 is month to month. Cancel anytime. Try that with a 72 month loan.

 

[ElectricIAC]

$300 is month to month. Cancel anytime. Try that with a 72 month loan.

Easy. Sell the car.

 

[Supcom]

That's an interesting point. At $15k, the break-even point for renting FSD is over 4 years.... a lot of Tesla owners change cars faster than that.

Someone who replaces their car every four years is hardly concerned about economy.

 

[ZenRockGarden]

Someone who replaces their car every four years is hardly concerned about economy.

I dunno - with the way used Teslas hold their value, swapping "up" to a fresh one comes at pretty low cost.

I got my first model Y a year ago. I sold it for (lots) more than I paid for it, and just got a new one almost identical to it, but with fresh tires and a faster cpu.

I agree that in a normal market, swapping cars frequently leaks money - this is much less true for Teslas.

 

[FFCars]

I agree but only if you get FSD if you paid for it. I paid for FSD 4-years ago for two Teslas and have Safety score of 98-100 here in CA but I still have not received FSD Beta. I only paid $3K for each FSD but the value to me remains $0 since I have never received anything for my money. I have a 2023 MX on order with FSD for $12K. If the MX is delivered to me and I still do not get FSD, it will remain a $0 value.

Why in the world would you pay for FSD on the new car? You just said you haven’t gotten anything of value for your two other cars. Are you just donating to the cause or something?

 

[ZenRockGarden]

Why in the world would you pay for FSD on the new car? You just said you haven’t gotten anything of value for your two other cars. Are you just donating to the cause or something?

At a minimum, wait and add FSD after taking delivery to at least avoid paying tax and registration on it (both of which are keyed off the official total sales price).

 

[uscbucsfan]

At a minimum, wait and add FSD after taking delivery to at least avoid paying tax and registration on it (both of which are keyed off the official total sales price).

Again, as I posted above, it depends where you live. With my insurance, adding it at the time of purchase allowed me to insure it, but it didn't factor in with taxes or registration.

Also, the price raises are to push people to subscription. Eventually they will make buying it so high that most avoid doing so and subscribe. Elon said at one point that the ultimate goal is subscription when he talked about different options for weekend packages, trip packages, etc. They will make much more money with subscription in the long run.