Tesla slashes FSD price in the US and Canada

Tesla is at it again - this time with a dramatic $4,000 price cut on its controversial "Full Self-Driving" (FSD) software package. While some see this as a sign of confidence in the technology, others call it a desperate attempt to boost sales as the company faces challenges.

The FSD feature, which promises to eventually make Teslas fully autonomous, now costs $8,000 in the United States and CAD 11,000 in Canada. The price cut also eliminates the $6,000 "Enhanced Autopilot" option, making FSD a more tempting offer.

This move follows another recent price adjustment: Tesla slashed its monthly FSD subscription cost from $199 to just $99. Additionally, the company announced vehicle price reductions just days ago, making this the latest in a series of budget-conscious Tesla decisions.

This aggressive pricing strategy may be a reaction to several factors. After a disappointing sales quarter and widespread layoffs, Tesla may be looking for a cash flow boost. Additionally, the lower subscription price puts more pressure on those considering the upfront FSD purchase, making that lump sum slightly more compelling in comparison.

But what's changed with FSD itself to warrant the lower price? Tesla recently overhauled the system (version 12.3) with machine learning technology to enhance self-driving capabilities. Coinciding with the software update, Tesla boldly offered all its US customers a one-month free FSD trial. Despite these advancements, it's worth noting the company now brands the system as "Supervised Full Self-Driving," acknowledging that it's still in the early stages of development.

The North American price drop has not spread to all regions. Interestingly, European prices, once generally lower than in the US, now sometimes exceed the new FSD cost in America despite the system's limited capabilities outside the US.

CEO Elon Musk has consistently claimed that FSD's value will increase with its capabilities, even suggesting that Tesla could become appreciating assets thanks to robotaxi potential. Yet, Tesla seems less confident in that high valuation when considering trade-ins.

Via