Tesla to Raise FSD Price by $1,000

Chief Executive Elon Musk says consumers need to pay up for the “full self-driving” option on their cars, saying it could have a value of $100,000.

Tesla will increase the price of the option by $1,000 starting July 1, Musk tweeted Monday. FSD launched as a $5,000 add-on until the automaker raised to the current price of $7,000.

“The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval,” Musk said tweeted. “[At] that point, the value of FSD is probably somewhere in excess of $100,000.”

https://twitter.com/x/status/1262530589506273280

While consumers can buy the feature now, “full self-driving” is not fully baked. The car still needs some driver assistance. But, Tesla continues to promise the full experience soon.

Musk believes as the cars continually gain autonomous capability, their value will rise. Tesla plans to use the autonomous features to launch a robo-taxi network in the future, which Musk says will turn the cars into money-makers for owners.

 

[whttiger25]

What makes you think $7K or $8K is full price for FSD? Musk just said it's worth $100K. Yeah that's loony but he's made the statement several times now that the current pricing is discounted since you a pre-paying. We really don't know what full price will be for FSD from Tesla or anyone else, since it's not here yet. But it's not hard to imagine a fully autonomous option being $20k. It turns your car into something completely different. Look at the performance package - people are paying $20K for that, and all it does is make the car accelerate faster in a straight line.

The problem with that is the finite life of your car, and the fact that you cannot transfer fsd to your next car, you have to pay the full price at that time.

were Musk to introduce meaningful legacy benefits it would get a lot more interesting and actually promote more vehicle trade Ups. But, I guess all the hoped for profit margin is in the FSD software and not the cars themselves. Hmmm

 

[whttiger25]

Musk needs the help of a psychiatrist and Tesla's board needs to either fire him or stage a much needed intervention. After owning Model S for 7 years—witnessing first hand how badly Tesla has fallen in terms of sales & service and how poor their build quality is even today—I buy the stock over the car. Since buying my P85, supercharging rate has been reduced by at least 50% making roadtrips impossible. My acceleration has also been reduced. All intentionally through software updates. Tesla's response: Sue us. We 85 kWh owners are doing exactly that. My next EV will not be a Tesla.


You mean like when Musk announced Autopilot, started taking peoples' money, but didn't deliver anything for over 12 months prompting complaints to multiple attorneys general across the country and threats of lawsuits?


Then why charge anything for it? Tesla uses your driving data to complete its development of FSD, yet you pay them? This makes no sense.


Only because you bought into Musk's scam. He's playing a confidence (con) came with the public.


No they aren't. First, it is not a "tangible" product when it is beta-ware riddled with bugs that has already killed several people. GM offers a solid AP-type product. Audi offers it. Mercedes offers it. Every manufacturer offers it. I don't remember anyone dying because of their products, only Tesla's. Because Tesla's implementation is sloppy and borderline criminally negligent.

Why is a "defined vision" important in any sense? You won't be able to participate in that vision two years from now because Tesla will change the game on you in terms of hardware/software. They will leave you out in the cold like they do everyone, eventually.


Not the vision, just the crapware. The vision won't be realized for many years. Until then, are you going to keep giving Tesla free money? Sounds insane to me.


Do you need autonomy? Probably not. The vast majority don't need it or want it. I certainly don't. I have no interest in trusting a machine to steer and drive for me. If I wanted to put my life in a child's hands, there are many other ways of doing it that won't result in a collision at 80 MPH.

To be clear, I don't give a crap about autonomy. I don't need or want to be a passenger behind the wheel. And if I ever do, I want a feature that has been safety tested and that has proper controls for driver attention. Tesla's implementation fails on all fronts.


When a company release software that doesn't work, one can only go up from there. Other manufacturers don't release half-baked products. They release products that are feature complete, that have undergone a much more rigorous testing regime than Tesla would ever be capable of creating.

Eventually, even ardent Tesla worshippers will come to the conclusion that Musk cannot be trusted and that he doesn't have his customers best interests at heart.

Not sure how you buy the stock at all with these opinions!

I do agree with a lot of what you say, but you have to give Elon credit for creating a viable EV industry landscape. Without the risks he took to keep Tesla alive it would have crashed and burned many years ago. Do you think any other automakers would be near where they are today in EV development without Tesla’s competitive pressure? Part of that success Includes using his customers as beta testers and quality controllers. I’ve been a victim of it, mainly in accepting
Poor build quality and buggy software including the removal of features I liked, and years of reporting simple bugs until they were finally fixed (like sorting usb Albums by song title instead of track numbers with v8) but damn it I love the car.

 

[Watts_Up]

Interesting to see that the 2021 Ford F 150, number one vehicle sold in US, will provide some kind of Self Driving capability
(basically a smart Cruise Control able to to turn the steering wheels on Freeways).

May be not comparable to Tesla FSD but this open a large new pool of drivers to this type of technology.

New 2021 Ford F-150 truck uploads as a tech-heavy hybrid ready for the next generation

Easy seemed to be on Ford’s mind with the availability of Active Drive Assist,
Ford’s hands-free adaptive cruise control system that can drive itself
on 100,000 miles of mapped highways and roads.

It has a driver-facing camera to detect driver focus, which is required.
It’s available on Lariat models and above, but requires the additional purchase of software
when it becomes available in 2021.
The software can be downloaded via an over-the-air update, or you could have it installed at a dealer.

Other tech conveniences include available wireless Apple CarPlay and Android Auto,
as is a complimentary app that can start, unlock, and lock the truck.​

 

[mikes_fsd]

To me it is a sign of how much pressure it is to live up to an inflated share price.

Uhm, he said FSD price would keep going up before the stock price shot past $1000...

 

[whttiger25]

Uhm, he said FSD price would keep going up before the stock price shot past $1000...

My point is he's trying to stimulate as much revenue as he can before today's quarter end by doing exactly that. Stating the price will keep going up is much different from it actually keeping going up, as demand will not materialize at higher prices without a truly functional product, which it's nowhere near being. He can keep raising the price all he wants but will people pay it? What's more, this isn't how tech works - prices are supposed to come down as the technology is more widely adopted and improved, and economies of scale begin to work, and most importantly, competitive options improve as well. It won't be long before cheaper alternatives are available. This is a competitive landscape, Tesla does not have a monopoly on FSD tech. In fact their tech is way behind others' because they've chosen hardware that just isn't up to the task. The difference is it is the only one available now, but that will change. More hardware will be required for Elon to meet his wild promises. The $100k figure he's throwing out is somehow meant to make us think of this $7000 purchase as an investment. However a car is a depreciating asset, and you can't take the FSD package to your next car. What is is really worth IN YOUR CAR NOW? To me the only usable feature is driver initiated lane changes while in autopilot.

Elon is making you think you gotta buy it now, because hte price is only gonna go up, so he can juice quarter end, because the stock price is so high that investors will be disappointed otherwise. Don't fall for the trick. Wait until the features currently available are worth the price to you. He's been pulling FSD along on a string and dragging us loyal cats behind him for years now and FSD, as it is named, is nowhere near ready. The only way I'd consider buying it is if I could transfer it to future teslas - truly own it. That would be fair to consumers because it's BETA! However it wouldn't be good for the stock price. Get it now?

Also - wouldn't buy TSLA here.

 

[Tpstulane]

I pulled the trigger today on FSD package. Bought the car Nov 2019 (2020) model. Tested it out and I’m happy with my purchase. You have 48 hours to cancel. I usually keep my vehicles for 7-10 years. I’ve more than paid for it owning the stock and the tax rebate. I know eventually they going to offer a subscription but I don’t need another subscription in my life.

 

[P3dStealth]

I pulled the trigger today on FSD package. Bought the car Nov 2019 (2020) model. Tested it out and I’m happy with my purchase. You have 48 hours to cancel. I usually keep my vehicles for 7-10 years. I’ve more than paid for it owning the stock and the tax rebate. I know eventually they going to offer a subscription but I don’t need another subscription in my life.

I'm pretty sure tesla is going to face some competition from GM soon. I would be amazed if their price doesn't go down. Especially since fsd without an eye tracking system is not even going to be legal in a lot of countries now. Our cars will be outdated with the next hardware update. Highly likely the eye tracking requirement will be required in USA eventually.

Countries agree regulations for automated driving

 

[Tpstulane]

I'm pretty sure tesla is going to face some competition from GM soon. I would be amazed if their price doesn't go down. Especially since fsd without an eye tracking system is not even going to be legal in a lot of countries now. Our cars will be outdated with the next hardware update. Highly likely the eye tracking requirement will be required in USA eventually.

Countries agree regulations for automated driving

I thought that as well. But yet it continues to go up.
Tesla will go to a subscription model soon to make it more affordable for many. I believe they will continue to increase the price of the software and lower the price of the vehicle as it evolves. Apple’s iPhone continues to cost more each cycle. As the technology gets better the price will increase. Tesla has billions of miles in its data base GM doesn’t.
I don’t see anything in autonomy for anyone besides Tesla.

 

[whttiger25]

I thought that as well. But yet it continues to go up.
Tesla will go to a subscription model soon to make it more affordable for many. I believe they will continue to increase the price of the software and lower the price of the vehicle as it evolves. Apple’s iPhone continues to cost more each cycle. As the technology gets better the price will increase. Tesla has billions of miles in its data base GM doesn’t.
I don’t see anything in autonomy for anyone besides Tesla.

You aren't looking hard enough. Billions of miles won't help if you don't have enough hardware to implement legal FSD.

Most people will not want to use their cars to join a remote taxi fleet, so the value will be strictly about the values of the usable features to them. You can't drop the price of the car too much and increase the price of FSD because manufacturing the car has real, significant costs, and plenty of people won't see the value of 10, 15k, for FSD that may take years to really make a difference. They'll lose too much money on the car as people realize that's where the real value is.

There is a free market optimal price of FSD and it isn't going to keep going up. iPhones, btw, are hardware, so more analogous to the car than the FSD package. you can get the same version of iOS on an SE as an 11 Pro. And Apple is constantly making significant upgrades to the screen, processor, camera, and sensors. Importantly they are adding features that customers value.

I've said it before and I'll say it again, buy FSD if the features now, and hte features you know will be available in the near future, are worth the cost. It's likely you'll need to buy a new car, and a new FSD package, before you really have FSD. Tesla should let you take the software with you when you upgrade. Only then does it make any sense to buy it if you are hoping for future improvements that include real usable autonomy. With the current hardware package, you are going to have to be ready to take control at any time, and you are going to be worried about the car doing silly and dangerous things, for years.

 

[whttiger25]

I will follow on my point to just add, the only way the extreme valuation of Tesla stock makes sense from a FSD perspective is if they separate the price of FSD for consumers from the price for taxi fleets. A consumer will not see the same value for it as someone who is going to deploy the vehicle as a remote taxi as a business propositon. And this is of course a distant future we are talking about anyway.

 

[Tpstulane]

You aren't looking hard enough. Billions of miles won't help if you don't have enough hardware to implement legal FSD.

Most people will not want to use their cars to join a remote taxi fleet, so the value will be strictly about the values of the usable features to them. You can't drop the price of the car too much and increase the price of FSD because manufacturing the car has real, significant costs, and plenty of people won't see the value of 10, 15k, for FSD that may take years to really make a difference. They'll lose too much money on the car as people realize that's where the real value is.

There is a free market optimal price of FSD and it isn't going to keep going up. iPhones, btw, are hardware, so more analogous to the car than the FSD package. you can get the same version of iOS on an SE as an 11 Pro. And Apple is constantly making significant upgrades to the screen, processor, camera, and sensors. Importantly they are adding features that customers value.

I've said it before and I'll say it again, buy FSD if the features now, and hte features you know will be available in the near future, are worth the cost. It's likely you'll need to buy a new car, and a new FSD package, before you really have FSD. Tesla should let you take the software with you when you upgrade. Only then does it make any sense to buy it if you are hoping for future improvements that include real usable autonomy. With the current hardware package, you are going to have to be ready to take control at any time, and you are going to be worried about the car doing silly and dangerous things, for years.

Actually when the fleet comes out I plan on buying the latest Tesla and using the current one i have in the fleet. I’ve acquired 5 house rentals thus far and the 5 rents will pay for the 6th and so on. I can see this exact thing with the Tesla fleet years down the road.

 

[P3dStealth]

I thought that as well. But yet it continues to go up.
Tesla will go to a subscription model soon to make it more affordable for many. I believe they will continue to increase the price of the software and lower the price of the vehicle as it evolves. Apple’s iPhone continues to cost more each cycle. As the technology gets better the price will increase. Tesla has billions of miles in its data base GM doesn’t.
I don’t see anything in autonomy for anyone besides Tesla.

Despite that other companies already have driverless cars on the road. Tesla does not. GM is already trying to get the federal government to approve production of a driverless car without a steering wheel. Waymo has driverless vans in Phoenix. Tesla just keeps selling people fsd without having fsd. I like my Tesla but in 4-6 years I am sure it will be old tech.

Also you can't just rent out your car in NY. They don't even allow turo. Uber and Lyft and all taxis are limited and regulated. I can pretty much guarantee this will be all cities. You simply can't have fleets of taxis driving around everywhere. We already have too many Ubers it got out of control before they stopped it.

 

[whttiger25]

Actually when the fleet comes out I plan on buying the latest Tesla and using the current one i have in the fleet. I’ve acquired 5 house rentals thus far and the 5 rents will pay for the 6th and so on. I can see this exact thing with the Tesla fleet years down the road.

Quite a long road you are looking at there.

 

[Tpstulane]

Despite that other companies already have driverless cars on the road. Tesla does not. GM is already trying to get the federal government to approve production of a driverless car without a steering wheel. Waymo has driverless vans in Phoenix. Tesla just keeps selling people fsd without having fsd. I like my Tesla but in 4-6 years I am sure it will be old tech.

Also you can't just rent out your car in NY. They don't even allow turo. Uber and Lyft and all taxis are limited and regulated. I can pretty much guarantee this will be all cities. You simply can't have fleets of taxis driving around everywhere. We already have too many Ubers it got out of control before they stopped it.

Tesla crushing them all including GM
Tesla shares soar after reporting big beat on second-quarter deliveries
Tesla shares soar after reporting big beat on second-quarter deliveries

 

[diplomat33]

Tesla crushing them all including GM
Tesla shares soar after reporting big beat on second-quarter deliveries
Tesla shares soar after reporting big beat on second-quarter deliveries

Tesla might be crushing it in terms of their stock and deliveries but that's not what we are talking about. We are talking about autonomous driving. In terms of autonomous driving, Tesla is behind. Tesla was supposed to have "feature complete" done 6 months ago and Elon just announced that they had to rewrite their entire perception stack and it could be 2-4 months before we see new features. So Tesla is still working on their perception stack. Meanwhile, Waymo has already deployed driverless robotaxis and Cruise has a robotaxi with no steering wheel or pedals that is ready to enter production.

 

[Tpstulane]

Tesla might be crushing it in terms of their stock and deliveries but that's not what we are talking about. We are talking about autonomous driving. In terms of autonomous driving, Tesla is behind. Tesla was supposed to have "feature complete" done 6 months ago and Elon just announced that they had to rewrite their entire perception stack and it could be 2-4 months before we see new features. So Tesla is still working on their perception stack. Meanwhile, Waymo has already deployed driverless robotaxis and Cruise has a robotaxi with no steering wheel or pedals that is ready to enter production.

I think the billions of miles of data will prove out in the end. Here’s an article from 2019 comparing the two.
Why Tesla, Not Waymo, is the Leader in Self-Driving Car Development

 

[Magellan55]

Tesla might be crushing it in terms of their stock and deliveries but that's not what we are talking about. We are talking about autonomous driving. In terms of autonomous driving, Tesla is behind. Tesla was supposed to have "feature complete" done 6 months ago and Elon just announced that they had to rewrite their entire perception stack and it could be 2-4 months before we see new features. So Tesla is still working on their perception stack. Meanwhile, Waymo has already deployed driverless robotaxis and Cruise has a robotaxi with no steering wheel or pedals that is ready to enter production.

Two different approaches, not comparable yet. Tesla's technology works in limited capacity, but nearly anywhere in the world. The others can do more, but only in certain limited places. I don't think anyone can yet tell who will get "there" (fully autonomous driving on any road in any condition in any country that allows it) first.