Tesla Reduces the Price of FSD and Various Models in the U.S. and Canada

By Cláudio Afonso
Tesla has now reduced the price of FSD
Tesla has now reduced the price of FSD

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.

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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