Tesla has announced a significant price reduction for its Full Self-Driving (FSD) subscription, lowering the monthly cost from $199 to $99. This adjustment was shared via a post on X, where Tesla also renamed the Level 2 driver-assist system to “FSD (Supervised)” to emphasize that while the system is advanced, drivers must remain alert and ready to take control at any time.
This price reduction reflects Tesla’s ongoing financial challenges and is part of a broader strategy to boost the adoption of its advanced driving technology. The FSD package, which was also available for a one-time fee of $12,000, is designed to handle a wide range of driving tasks more comprehensively than the standard Autopilot system, which is included in all new Tesla vehicles.
In addition to the price cut, Tesla has initiated a one-month free trial of FSD and mandated service center employees to demonstrate the system to prospective buyers during test drives—a directive reportedly from CEO Elon Musk himself.
Despite these promotional efforts, FSD has received mixed reviews from users. Some praise its capabilities, while others find it erratic. The system is unique among automakers’ driver-assist technologies because it is designed for use on local roads with complex driving conditions, not just on highways. This has placed Tesla’s driver-assist technology under intense scrutiny, especially following several incidents where vehicles using Autopilot collided with stationary emergency vehicles, leading to recalls and federal investigations.
The move to lower subscription fees comes at a time when Tesla is experiencing a rare dip in quarterly vehicle deliveries, increasing pressure on the company to find other revenue streams. The decision to cut FSD prices might also be an attempt to make up for these financial shortfalls and stimulate growth in service subscriptions.
Tesla’s focus on software innovations continues as the company also prepares to introduce a new “robotaxi” concept later this year, expected to be heavily reliant on FSD technology.
