Tesla reduced the price of its “Full Self Driving” system — which cannot drive itself and requires drivers to be attentive and ready to intervene — by nearly a third to $8,000 from $12,000, according to the company website.
Elon Musk, Tesla’s CEO, believes the technology will someday become a significant source of revenue for the world’s most valuable manufacturer.
In addition to the price reduction, Tesla has removed “Enhanced Autopilot” as an option, which had previously cost $6,000. For owners who currently have improved autopilot, upgrading to FSD costs $2,000, down from $6,000.
It also reduced the price of its FSD membership service in half, to $99 per month, just a few weeks ago. Despite this, some owners are still being charged $1,000 for gear that they have previously paid for.
Elon Musk stated in 2019 that there will be a fleet of robotaxis on the road by 2020, but that promise has yet to be fulfilled, and the system must still be monitored by humans.
Tesla dropped the costs of its most popular model, the Model Y, a compact SUV that is the best-selling electric car in the United States, as well as the Models X and S, which are older and more costly. Prices for the Model 3 car and Cybertruck remained unchanged.
“Over the years, we have developed dramatically, with several plants expanding throughout the world. Due to the fast expansion, several jobs and job tasks have been duplicated. We feel it is critical to examine every part of the company for cost savings and increased efficiency. This step will position Tesla for the next stage of development, as we create some of the most breakthrough technologies in automotive, energy, and artificial intelligence,” the firm stated in the filing.
In an effort to increase demand, the EV manufacturer reduced the costs of its Model Y, Model X, and Model S in the United States by $2,000 apiece on Friday. Additional price cuts were announced in Germany, China, and other European and Middle Eastern nations.