Tesla started its rollout of the next big release of FSD Beta on August 20th. And alongside its many improvements, Elon Musk announced that Tesla will be raising the price of FSD to $15,000 - a 20% increase. The price increase will go into effect in North America on September 5, 2022 "after a wide release of FSD Beta 10.69.2."
“Current price will be honored for orders made before Sept 5th, but delivered later,” Musk adds.
After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5th.
Current price will be honored for orders made before Sept 5th, but delivered later.
Musk followed up with a tweet that added how easy it was to upgrade your existing vehicle to FSD via the Tesla mobile application.
“Note, you can upgrade your existing car to FSD in 2 mins via the Tesla app,” Musk writes.
FSD Beta’s sudden and large increases in price over the last year has drawn criticism from the Tesla community. After more than 100,000 Tesla owners were added to the FSD Beta program, the software has gotten a lot of hands-on experience from owners who are having some doubts about its hefty price tag.
Tesla owner and YouTuber James Locke (@arctechinc) shared an echoed recommendation via Twitter to Musk. He asked that the license for Tesla be looked into since FSD is in development and is not a finished product yet. He suggested that a “commercial license” be used when owners place their vehicles into the robo-taxi fleet.
“.@elonmusk I humbly recommend it’s time to rethink the way the FSD license works,” Locke writes. "While FSD is still in development and not a finished product you should have a personal use and commercial use license. Personal use should be much cheaper to allow for maximum safety /1."
“When the robo-taxi fleet is a reality you could offer an upgrade to buy into the commercial license which is more expensive and offers higher profits for putting the car into the fleet. Or owners could let Tesla take a great [chunk] of the robo-taxi profit for personal license.”
.@elonmusk I humbly recommend it's time to rethink the way the FSD license works. While FSD is still in development and not a finished product you should have a personal use and commercial use license. Personal use should be much cheaper to allow for maximum safety /1
Locke adds that everyone who purchases a Tesla should have FSD included with their purchase because its features are tantamount to the vehicle’s safety.
“IMHO @elonmusk everyone who buys a Tesla should get FSD included for personal use to ensure the safest cars on the road are affordable to everyone.”
IMHO @elonmusk everyone who buys a Tesla should get FSD included for personal use to ensure the safest cars on the road are affordable to everyone.
If someone wants to put their Tesla into a money making robo-taxi fleet, that's when the cost for a license should be higher. /end
In January of 2022, Tesla raised the price of Full Self-Driving from $10,000 to $12,000. At the time, many were discussing FSD’s price and stating that $10,000 was too much for the software in its current state.
Last year, Tesla launched its Full Self-Driving subscription. Owners could pay $99 per month or $199/month for the FSD subscription, depending on whether their vehicle already has Enhanced Autopilot.
At the time Tesla's FSD package cost $10,000 and you'd have to subscribe for more than four years (at $199) before it made sense to buy the FSD package.
However, with the upcoming price increase, you'd now need to subscribe for more than six years before buying the package outright was the better deal.
There's no word whether Tesla will also increase the monthly subscription, which is starting to look like a better deal for new owners.
A monthly subscription certainly has a lot more flexibility as you can cancel or renew whenever you'd like without any penalties.
It's certainly possible that Tesla is trying to shift users toward a subscription model.
Tesla's FSD monthly subscription has remained the same price since its introduction.
As Full self-driving becomes better with each update and Tesla gains more data, we can anticipate the price of FSD to continue to go up. With the continuous sudden and large price increases, it’s becoming more difficult to justify such a large price tag.
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In a new video posted to X, Tesla is showing the progress of its first Lithium Iron Phosphate (LFP) cell manufacturing factory in North America. The facility, located in Sparks, Nevada, will be used to produce LFP battery cells for Megapacks and Powerwall.
However, the implications of this new factory extend beyond Tesla Energy. By on-shoring the production of these cost-effective batteries, Tesla is not only securing its energy supply chain but also opening the door to potentially reintroducing LFP-based vehicles in North America.
Nearing completion of our first LFP cell manufacturing factory in North America pic.twitter.com/OLNRWajz4l
The immediate beneficiary of the new Nevada LFP facility is Tesla’s Energy division. LFP chemistry is ideal for stationary storage products like Megapack and Powerwall. It offers a very long life cycle, is extremely thermally stable and safe, and is significantly cheaper to produce than nickel-based batteries, partly because it contains no cobalt.
Until now, Tesla has relied on suppliers like CATL in China for these cells. A dedicated, domestic supply will enable Tesla to dramatically ramp up Megapack production to meet North America’s increasing demand for grid-scale energy. On the other hand, Megafactory Shanghai continues to utilize CATL’s LFP batteries and will support the rest of the world.
Tesla first revealed that they were planning to onshore LFP production in North America at the Q1 2025 Earnings Call, which will help them avoid costs, innovate in new technology, and insulate themselves from geopolitical supply chain risks.
A Potential Return for LFP Vehicles?
Another exciting application for Tesla is what this new factory means for Tesla’s budget-oriented lineup. For years, Tesla has been constrained in its ability to offer LFP-based vehicles in North America. While LFP packs are used in other markets for specific standard-range RWD vehicles, tariffs on important Chinese cells made it difficult to import these cells for use in North America.
With a domestic supply of LFP cells produced in Nevada, this tariff-related barrier will be mostly eliminated, pending the sourcing of lithium from a North American site. This is likely to lead to the reintroduction of LFP-based vehicles to the North American market, possibly in late 2026 or 2027.
An American-made LFP pack could lead to a more affordable base Model 3 or Model Y, or potentially help Tesla cut costs on the next-generation Affordable Model even further. This helps to give customers a lower-cost entry point without sacrificing a lot of range, and with the added benefit of being able to regularly charge to 100%.
Mega Nevada
With Mega Nevada now progressing well, Tesla is in an excellent position to continue iterating on its vertical integration and scaling Megapack and Powerwall—two of Tesla’s fastest-growing businesses—further. There are tons of benefits for consumers in the future as Tesla continues down this path, with more affordable Powerwalls for the home, cheaper electricity prices thanks to grid-forming Megapacks, and cheaper LFP vehicles.
The next major upgrade for Tesla’s in-car experience is pretty much already here - just hiding beneath the surface, awaiting the flick of a switch. According to new details uncovered by Tesla hacker Greentheonly, a fully functional version of the Grok conversational AI assistant is already present in recent firmware builds, just waiting for Tesla to activate it.
The feature, which is currently behind a server-side switch, could be enabled at any time by Tesla for vehicles running update 2025.20 and newer. The findings provide a better picture of what we already learned from Green’s breakdown on Grok last month.
Grok’s Requirements
@greentheonly on X
According to what Green determined from the latest software builds, the foundation for Grok was laid with update 2025.14, with more abilities and functionality added in 2025.20 to flesh it out. He also determined exactly which vehicles will be receiving Grok.
In terms of hardware, any vehicle with a Ryzen-based infotainment computer will receive Grok. This means that vehicles with the older Intel Atom processor will not be supported, at least initially. The underlying Autopilot hardware is not a factor, as Grok’s processing is not done in-vehicle.
Grok will also require premium connectivity or a Wi-Fi connection for the vehicle. At this point, we’re not sure whether Grok in your Tesla will also require you to sign up for SuperGrok, X Premium, or X Premium+, but Tesla is requiring you to sign into your Grok account. It’s just not clear whether the free version of Grok will work, or if you’ll need the premium version.
Grok User Experience
@greentheonly on X
Green also revealed the user interface for Grok for the first time. You’ll find many of the same features from the Grok app, but surprisingly, it looks like it’ll have a dark UI, even if you’re using light mode in your vehicle.
It appears that there will be a Grok app, likely for settings. However, Grok will largely operate in a modal, similar to voice commands, which are displayed near the bottom left corner of the screen.
There’s an on-screen microphone button, as well as drop-down menus for the voice and type of assistant you’d like to use.
Similar to the Grok app currently on mobile devices, you’ll be able to select from a set of voices and then define their personality. The available voices for now are the standard Ara (Upbeat Female), Rex (Calm Male), and Gork (Lazy Male).
There’s also a settings button, which, when expanded, allows you to enable or disable NSFW mode (including swearing and adult topics), as well as a Kids Mode, which will tone Grok down to be suitable for when kids are in the car.
@greentheonly on X
How Grok Will Work (Button / Wake Word)
Users will be able to activate Grok by pressing a button, likely the same one that activates voice commands today. Grok will then remain enabled for the duration of your conversation, allowing you to go back and forth, asking and answering questions. To end your conversation, you’ll press the mic button again.
While it doesn’t appear to use a wake word yet, Green says that some code refers to a wake word, so it’s possible that this could be an option Tesla plans to activate in the future.
Replacing Voice Commands
The most significant implication of Grok’s future integration is in its potential to fully replace the existing and relatively rigid voice command system. Green notes that internally, this feature is part of the car assist module, and that eventually, the plan is for Grok to take over car control functions.
Unlike the current system, which requires specific phrases, a true conversational AI like Grok can understand natural language. This will enable more intuitive requests, completely changing how drivers interact with their car.
Language Support
@Greentheonly/X
Grok will also launch with multi-language support, similar to its current abilities in the Grok app. Green says that it already appears to have support for English and Chinese and one or two other languages.
Release Date
Grok appears ready to go from a vehicle standpoint, but Green wasn’t able to actually test it out. While development appears to be nearly complete in the vehicle, Tesla and xAI may still be working on some server-side changes to better integrate with the vehicle. If they plan for Grok to replace voice commands on day one, then it’ll need to be trained and be able to execute a variety of vehicle commands.
It’s possible Tesla is actively testing Grok or adding server-side changes to replace voice commands. However, it looks like vehicle development is nearly complete and Grok could launch as soon as the next major Tesla update, which is expected to be update 2025.24.
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