Tesla is shifting gears by requiring a $99 monthly subscription fee for its Autopilot and Full Self-Driving (FSD) features. The decision follows falling sales and shrinking profits, as the electric vehicle manufacturer looks to bolster its bottom line with recurring revenue streams.
Currently, Tesla offers partially automated driver assist systems, including Autopilot and FSD, at a one-time cost of $8,000 for FSD or free for Autopilot. However, starting February 14, customers will be forced to pay the monthly subscription fee for any level of Autopilot functionality.
Elon Musk's revelation that "the $99/month for supervised FSD will rise as FSD’s capabilities improve" suggests Tesla plans to continue charging more for its advanced driver assist systems as they become more sophisticated. This strategy is part of a broader trend in the automotive industry, where OEMs are seeking to generate recurring revenue by offering subscription-based services.
The shift away from free or low-cost Autopilot functionality may be motivated by Tesla's declining profit margins and falling sales. As California becomes increasingly important for the company due to its size and regulatory scrutiny over Autopilot safety, it's likely that Tesla wants to secure cash infusions from customers while maintaining control over their driver assist systems.
The decision comes after multiple lawsuits were filed against Tesla over Autopilot-related accidents and regulatory investigations into potential misleading marketing practices. Musk had initially touted the capabilities of these advanced driver assist systems but has since faced criticism for downplaying their limitations and exaggerating their abilities.
Currently, Tesla offers partially automated driver assist systems, including Autopilot and FSD, at a one-time cost of $8,000 for FSD or free for Autopilot. However, starting February 14, customers will be forced to pay the monthly subscription fee for any level of Autopilot functionality.
Elon Musk's revelation that "the $99/month for supervised FSD will rise as FSD’s capabilities improve" suggests Tesla plans to continue charging more for its advanced driver assist systems as they become more sophisticated. This strategy is part of a broader trend in the automotive industry, where OEMs are seeking to generate recurring revenue by offering subscription-based services.
The shift away from free or low-cost Autopilot functionality may be motivated by Tesla's declining profit margins and falling sales. As California becomes increasingly important for the company due to its size and regulatory scrutiny over Autopilot safety, it's likely that Tesla wants to secure cash infusions from customers while maintaining control over their driver assist systems.
The decision comes after multiple lawsuits were filed against Tesla over Autopilot-related accidents and regulatory investigations into potential misleading marketing practices. Musk had initially touted the capabilities of these advanced driver assist systems but has since faced criticism for downplaying their limitations and exaggerating their abilities.
. Are we really allowing car manufacturers to charge us for "supervised" FSD? That sounds like a pretty convenient way to rake it in, if you ask me 
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. It's like he's taking advantage of customers when they need it most – and that's what this whole situation feels like 
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Still, I guess it's understandable that they want to generate more revenue. But at the same time, aren't people already paying thousands for their cars and then you add on top of that a monthly fee? 
It just feels like another cost to consider when buying from Tesla... anyway, I hope they keep improving those FSD features so it's worth paying extra for 
And don't even get me started on the whole "capabilities improving" thing... sounds like they're trying to nickel and dime customers into paying more 
Now you're telling me I've got to pay even more just to let him use it? No thanks! 
. The thing that really gets me is that we already paid a pretty penny for the car and now we're being nickel-and-dimed on top of that. I'm all for innovation, but come on Tesla! Can't you just make it fair? 
. I mean, $99 a month is a bit steep, especially if you're already paying thousands for an electric car. It feels like they're nickel-and-diming us, you know? 
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. I'm not sure if this is going to work out for them.
We already pay enough for these cars. And what's with all these lawsuits and regulatory stuff? It feels like Tesla's just trying to cover their tracks instead of fixing the problems. Anyway, I guess we'll just have to get used to shelling out more cash every month if we wanna use Autopilot... 
. Like, what even is that? Are they trying to nickel and dime us into oblivion? It just feels like a way for Tesla to make up for their declining sales and profits. I guess only time (and our wallets) will tell if this move pays off 
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it's like, i get it, tesla needs the cash, but come on, can't they just make it more affordable or something? and what's with the "supervised" fsd thing? does that mean we'll have to pay extra for elon musk to babysit us while we drive? 
. I mean, I know they're tryna make more cash and all, but it feels like they're just nickel-and-diminishing their customers at this point 