Change is intended to make feature more accessible by eliminating the high upfront cost
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Tesla’s advanced driver assistance system, Full Self-Driving (FSD), will move from a one-off purchase to a monthly subscription model from 15 February.
Tesla CEO Elon Musk announced the change on X, but did not elaborate on the reasons behind it. Tesla currently offers an FSD subscription for $99 per month.
This shift removes the substantial upfront cost of FSD, which is around $8,000 in the US. It is important to note that, despite its name, FSD still requires drivers to remain alert and intervene regularly. The switch to a subscription model is intended to make Tesla’s advanced automotive technology more accessible to a wider group of users.
Musk has consistently emphasised self‑driving technology and robotics as key growth areas for Tesla. This focus comes at a time when the company has faced a decline in car sales over the past two years, forcing it in 2022 to relinquish its position as the world’s largest manufacturer of electric vehicles to China’s BYD.
In response to this challenge, Tesla is giving priority to technological developments such as FSD, robotaxis and robots.
Business AM