Tesla Reduces Price of FSD Subscription to $99 Per Month [Subscriptions Now Available in Canada Too!]

By Not a Tesla App Staff
Tesla has lowered the price of its FSD subscription in the U.S.
Tesla has lowered the price of its FSD subscription in the U.S.

Tesla just dropped its FSD subscription pricing dramatically in the U.S., lowering the cost from $199 to $99 per month. However, not everyone is thrilled with the new pricing.

For owners who bought the Enhanced Autopilot package for $6,000 USD, Tesla offered a lower-priced FSD subscription of $99, instead of $199. However, with this new FSD price reduction, EAP owners are no longer receiving a discount.

FSD Subscription Expansion

Currently, the FSD subscription is only available in the U.S., but plans for expansion are underway. Tesla's Rohan Patel recently announced that the subscription will soon be available in Canada, alongside the introduction of an annual plan for Premium Connectivity. 

This expansion into the Canadian market is anticipated to follow a similar pricing strategy, adjusted for the currency exchange rate, possibly setting the cost at approximately $140 CAD per month.

Update: Tesla has just announced that FSD subscriptions are now available in Canada! What’s even more surprising is the unexpectedly low subscription price of $99 CAD. Tesla took to X to announce the availability in Canada but unfortunately didn’t reveal any additional information regarding the subscriptions.

Is Buying FSD Still Worth It?

Despite the lowered subscription price, the outright purchase price for FSD remains steep at $12,000. This price point equates to subscribing to the service for over 10 years. Given that the average length of car ownership in the U.S. is about 8 years, this makes the current price of buying FSD unattractive to most. The saving grace of buying FSD is that you know what you're paying for the life of the vehicle and can avoid any potential subscription price increases.

Temporary Reduction or Long-term Strategy?

Tesla has not confirmed whether the price reduction is a temporary promotional tactic or a permanent adjustment. The timing coincides with Tesla's release of FSD v12 and its trial offer, suggesting that the company is keen on encouraging more drivers to experience FSD. This approach not only boosts user engagement but also accelerates the volume of data Tesla can collect to improve the system.

FSD With Referral Credits

Although Tesla hasn't adjusted the price of buying FSD, it is tweaking its referral program to accommodate the new price. Three months of FSD are now available through Tesla's referral program for 6,000 credits, reduced from the previous 12,000 credits.

Tesla's reduction in FSD in the U.S. and its planned expansion into Canada reflect a strategic initiative to make FSD more accessible and financially attractive to a broader audience. There's no doubt this change will increase the number of FSD subscriptions, but it'll be interesting to see how much. To break even, Tesla would need to double the number of subscriptions, but they likely have their eyes set much higher.

If you currently subscribe to FSD, Tesla has automatically reduced future payments to the lower $99 price point.

Impact Report: Tesla Vehicles 8x Less Likely to Catch Fire, Batteries Degrade 15% After 200k Miles

By Karan Singh

Tesla’s mission is to accelerate the world’s transition to sustainable energy by producing products far superior to fossil fuel alternatives and sourcing and manufacturing them sustainably. Tesla released its 2023 Impact Report yesterday, discussing their ongoing impact on the environment and the improvements seen.

Displacing Fossil Fuels

In 2023 alone, Tesla’s impact on the environment through its vehicles, Powerwall, and Solar Roof has been massively impactful – Tesla customers avoided releasing the equivalent of 20 million metric tons of CO2e into the environment. That is the equivalent of 51 billion miles of driving an average internal combustion engine (ICE) vehicle.

Each Tesla vehicle that is on the road avoids an average of 51 tons of CO2e emission into the environment. After just 3 years of driving, a Tesla’s lifetime emissions are lower than those of a comparable ICE vehicle. After the average lifespan of a vehicle in North America – 17 years – a single Tesla will have exceeded that value 5.5 times over.

Integrated Ecosystems

Tesla offers comprehensive ecosystems of products to address clean energy and transportation needs, from Megapack, Solar Roof, and Powerwall, to the Model S, 3, X, Y, and Cybertruck.

Tesla Solar produces power for storage in Megapacks or Powerwalls, which charge electric vehicles. Tesla also produces some of their own batteries, for both its storage applications and vehicles, enabling a complete cycle.

On the software side, products like Autobidder, Full Self-Driving, and the upcoming Robotaxi work to maximize the productivity of electricity that is stored in vehicles, helping to further displace fossil fuels in a single ecosystem of well-designed products.

Tesla's ecosystem depicted.
Tesla's ecosystem depicted.

World’s Best EVs

Tesla’s Model Y is still the best-selling vehicle in 2023, a trend likely to continue in 2024. And it’s not for little reason. It is the world’s most efficient EV, capable of running Autopilot/FSD, and is considered one of the best safety picks in both North America and Europe. Tesla’s data has also proven that they are, on average, 7.63 times safer than a traditional vehicle when running Autopilot.

Additionally, the Model Y is priced $3,000 USD below the average new vehicle in the US before the Federal EV Tax Credit – a difference of $17,000 after factoring in the credit and gas savings over 5 years.

Battery Degradation

Model 3/Y battery degradation over time
Model 3/Y battery degradation over time

Battery degradation is often brought up as a concern for EVs and the environment. Batteries fade away, become useless, and cannot be recycled. According to Tesla’s data and experience, this is far from the truth.

In fact, Tesla has found that their batteries degrade about 15% after 200,000 miles – the equivalent of the average lifetime of a vehicle. And in fact, they do even better in the cold than they do in the heat, with better degradation performance in Canada over the US.

Another interesting fact is that Tesla vehicles in particular – are 8 times less likely to be victim to a vehicle fire, compared against the US average.

Sustainable Sourcing

Sustainably sourcing materials is essential to reach Tesla’s vision of a world with reduced environmental impacts. In 2023, Tesla recovered enough battery materials to produce 43,000 Model Y RWD vehicles, while also sourcing Gigafactory Berlin with 100% renewable energy.

Overall, Tesla solar owners generated enough energy to power all Tesla locations, including all the Mega and Giga Factories, and all other facilities – over 3 times.

Tesla has also reduced water use by 25% over the last 5 years for vehicle production, marking a new milestone low – at 2.48 cubic meters of water, versus 3.37 cubic meters of water for an average ICE vehicle.

Tesla Breaks Ground on New Megafactory in Shanghai

By Karan Singh

Tesla broke ground on a new Megafactory in Shanghai’s Lingang free trade zone pilot program. This factory will be Tesla’s first foray into battery production outside of the United States, mirroring its direction in Lathrop, California.

Batteries, Not Cars

Megafactory Shanghai won’t be producing cars but rather will be producing Megapacks, which are grid-scale battery solutions that can power entire electricity grids.

Each massive Megapack battery unit, about the size of a shipping container, can deliver about 1.2 megawatts of power capacity, with 3.9 megawatt-hours of electricity. A single Megapack unit can power approximately 3,600 homes for an hour.

The Megafactory is scheduled to begin production in early 2025, with production goals of 10,000 Megapack units per year.

Sustainable Energy and Megapack

One of Tesla's Megapacks
One of Tesla's Megapacks

Tesla’s mission is more than just producing self-driving cars – it’s to accelerate the world’s transition to sustainable energy. As part of this mission, Megapack and grid-scale energy solutions are key to offset energy costs and carbon emissions when wind, solar, or hydro are at reduced capacities.

Megapack helps to maximize renewable energy use, minimize carbon use, and allow base-load capacities like nuclear power to maintain their output. Similar energy-storage solutions like pumped storage hydropower are expensive, require specific terrain features, and can take years to construct. Megapack units ship assembled, allowing for rapid installation with minimal complexity.

Lathrop vs Shanghai

Tesla’s fairly new facility in Lathrop, California is a mirror of the new facility being built in Shanghai. However, just like the differences between Fremont, Giga Texas, and Giga Shanghai, Mega Shanghai will likely incorporate new technologies to improve productivity. Additionally, it serves as a way to serve the energy market in the Indo-Pacific region, which has been at the forefront of energy development in the last decade.

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