Tesla Inc. TSLA has announced a significant price reduction for its Full Self-Driving or FSD Supervised package.
What happened: On Friday, Tesla revealed that it will reduce the monthly subscription fee for its premium driver assistance system in the United States from $199 to $99. CEO Elon Musk reshared the announcement on Xpreviously Twitter.
However, this move is in direct contrast to Musk’s previous claims that the price of the FSD would only increase as the system’s features and capabilities expand. “The price of FSD will continue to rise as the software approaches full self-driving capability with regulatory approval,” the tech mogul said in 2020.
See also: Elon Musk said he is in talks with India’s richest man to help him establish Tesla factory
Because matter: This comes after Tesla recently announced that its cars have driven one billion miles with the help of its self-driving (FSD) software. Adam Jonas, an analyst at Morgan Stanley, predicts that figure will increase to 400 billion miles per year or over 1 billion miles per day by 2030, giving Tesla a monumental data set for machine learning and subsequently improving its attempts at autonomous driving.
Furthermore, Tesla’s FSD technology has been the subject of numerous controversies. The California Department of Motor Vehicles formally accused Tesla in 2022 of engaging in deceptive practices on the marketing of its driver assistance systems, including the standard Autopilot and FSD package in the United States
Previously, Tesla’s FSD technology had been deployed in about 2 million vehicles in the United States, according to the company’s head of artificial intelligence.
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