Tesla has reduced the price of its Full Self-Driving (FSD) software, dropping it from $12,000 to $8,000 for customers in the United States and from CA$16,000 to CA$11,000 in Canada. This move follows the recent 50% reduction in the subscription price announced on April 12.
Enhanced Autopilot Changes
The cost to upgrade from Enhanced Autopilot (EAP) to FSD has also been cut and is now a $2,000 upgrade for U.S. customers and CA$2,750 in Canada. EAP has also been removed as an option completely from Tesla’s site. Customers’ only option to get more advanced driver assist features in the U.S. and Canada is to now buy FSD.
In 2016, Enhanced Autopilot started at $5,000 while FSD was an extra $3,000. At the time, Enhanced Autopilot included features including Autosteer, Summon, and AutoPark, while more recently it also added Auto Lane Change and Navigate on Autopilot, which has the vehicle change lanes for you to remain on route to your destination.
Earlier this month, Tesla implemented a 50% price reduction for FSD subscriptions in the U.S. and introduced the subscription model in Canada at a great value of CA$99 per month.
FSD Price History
In April 2019, Basic Autopilot was added to every Tesla vehicle, which included Autosteer and Tesla restructured their Enhanced Autopilot and FSD offerings. The price of FSD slowly climbed from $5,000 USD in 2019 to a high of $15,000 USD in September 2022 before trending downward.
Date | FSD Cost |
|---|---|
April 2019 | $5,000 |
May 2019 | $6,000 |
August 2019 | $7,000 |
July 2020 | $8,000 |
October 2020 | $10,000 |
January 2022 | $12,000 |
September 2022 | $15,000 |
September 2023 | $12,000 |
April 2024 | $8,000 |
Subscribe or Buy?
With the previous pricing of $12,000 in the United States, Tesla customers who subscribed to FSD for $99 a month would need more than 10 years to reach the purchase price. With the updated price of $8,000, that drops to about 6 and a half years. It’s worth noting that the average length of car ownership in the U.S. is about 8 years.
This decision follows Elon Musk’s recent initiative to offer FSD demonstrations to all customers in North America upon vehicle delivery. In a recent communication, the Tesla CEO emphasized the importance of FSD, stating that it had become mandatory in North America to conduct a brief FSD test ride with customers before handing over the vehicle.
In the same email, Musk added that “almost no one actually realizes how well (supervised) FSD actually works” while recognizing that the measure could “slow down the delivery process”.
Price Cuts
On Saturday, Tesla also cut prices by nearly $2,000 on the Model S, Model X, and Model Y in the U.S. The Model Y now starts at $42,990 before government incentives. Tesla has also begun reducing finance rates in various markets, which could make their way to North America in the near future.
