Tesla has drastically lowered the lifetime price of its Full Self Driving (FSD) service ahead of the company’s quarterly earnings report scheduled to be released on April 23.
The electric vehicle maker will now charge drivers a one-time fee of $8,000 to use FSD, according to its website. The new price is down 30% from its previous value of $12,000 and 46% from the initial $15,000. Just weeks ago, Tesla owners who pay for an FSD subscription received an even greater discount, with the price falling from $199 to $99 per month.
While FSD is not capable of full autonomy and is categorized as only a Level 2 system, company CEO Elon Musk has confirmed reports that Tesla will release a driverless robotaxi later this year. The entrepreneur has stressed that the brand’s future relies on improving its self-driving technology.
Since early 2023, Tesla has leveraged price cuts as a means of boosting sales, as the company’s deliveries have started to stagnate in the face of increased competition and cooling electric vehicle demand. The brand’s decision to cut the cost of FSD arrived the same week, and it again lowered its car prices, this time discounting the Model X, Model Y, and Model S by $2,000 each.
Tesla is expected to release its quarterly earnings report tomorrow, which is likely to reveal tighter profits after years of strong performance. The company’s January-through-March deliveries failed to meet all but the most pessimistic analyst forecasts, underlining its struggles to expand its consumer base in the current market.
