Tesla to raise price of Full Self-Driving to $15,000

By Lennon Cihak
Tesla to increase the price of FSD
Tesla to increase the price of FSD
Whole Mars Catalog/YouTube

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.

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.”

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.”

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.

Tesla Reveals Robotaxi App and Names the Robotaxi the CyberCab

By Cláudio Afonso

Tesla has invested billions of dollars over the years toward vehicle autonomy. The mission continues as Elon Musk and Tesla now prepare to unveil their ride-hailing product, Robotaxi this August. Or, as Musk called it on Tuesday, Tesla CyberCab.

Early Days

Five years ago, during Tesla’s Autonomy Investor Day in April 2019, Elon Musk said he felt “very confident predicting autonomous robotaxis for Tesla in the following year [2020]”. At the time, Musk added a bolder claim, predicting that Tesla wouldn’t even make cars with steering wheels or pedals by 2022. While timeliness may not be Musk’s strong suit, he has a track record for getting things done that others were unwilling to try or thought were impossible. Musk later admitted he can be overly optimistic and said “sometimes I am not on time, but I get it done.” 

Now, 5 years later, we have the robotaxi unveiling scheduled for August 8th. After the release of FSD v12, it’s clear that we’re much closer to autonomy than we were in 2019, although FSD v12 is still a far cry from full autonomy.

While Tesla still has the robotaxi unveiling scheduled for August, Tesla announced yesterday that it’d be prioritizing a simpler “next-gen” model that could be released by early 2025.

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On the conference call, Musk added that Tesla now has over 300 million miles driven with FSD v12 since it was launched just last month. He added that it's becoming “very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy”.

Tesla said it has been investing in the hardware and software ecosystems necessary to achieve vehicle autonomy and a ride-hailing service. The company is confident that it can establish a scalable and profitable autonomous driving business by employing a vision-only architecture.

think of it [Tesla] as combination of Airbnb and Uber meaning that there will be some number of cars that Tesla owns itself and operates

Tesla = Uber + AirBnb

Later on, Elon Musk unveiled that the new service will operate and result in a mix between Uber and Airbnb where the Tesla driver decides if and when he wants his Tesla to be used and by whom. Tesla stated:

“We believe the Tesla software experience is best-in-class across all our products, and plan to seamlessly layer ride-hailing into the Tesla App.”

Tesla’s CEO clarified that the owners will be able to add or remove their car from the fleet “whenever they want” adding that it will be up to them to decide if they want to only let the car be used “by friends and family or only by five-star users or by anyone at any time”. The flexible program will, just like Airbnb, allow the owners to take the car out of the market when they want.

The upcoming ride-hailing service will enable users to easily request a Tesla vehicle, control the car's temperature, monitor its real-time location, and adjust the audio system. The only question is when.

Musk Teases New Model for Early 2025 That Will Use a Mix of Next-Gen and Current Platforms

By Cláudio Afonso

“We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025”. This was one of the key sentences that were part of Tesla’s deck shared on Tuesday directly before its financial results.

Since Reuters’ report a few weeks ago saying Tesla had “scrapped” the highly expected cheaper model— which Elon quickly denied on X —retail and institutional shareholders started asking for more details on Tesla’s product roadmap for 2024 and beyond.

In the earnings conference call, Elon Musk reiterated that Tesla expects to launch the next model in “early 2025, if not late this year”.

“We've updated our future vehicle lineup to accelerate the launch of new models ahead of previously mentioned start of production in the second half of 2025. So, we expect it to be more like the early 2025, if not late this year. “

Over concerns of temporary production halts to update the factories for these new models, Musk said that Tesla will produce new models with certain aspects from their next-generation platform and current models. This will reduce the number of changes needed on production lines and allow Tesla not only to ramp up production faster but also to get the vehicles to market quicker.

Model Y Redesign

Tesla appears to hit that their next-gen vehicle will be less “next-gen” than they were initially aiming for, but to get a new vehicle out the door by late 2024, the process would already have to be in motion. Tesla may likely be referring to the redesigned Model Y, which is expected to reuse many parts from the new Model 3. Earlier this year, Tesla said that the redesigned Model Y will not be released this year, so it makes sense that they’re looking to speed up that production.

Tesla CEO concluded by saying that these measures will allow Tesla to reach a capacity of over 3 million units. Tesla produced 1.84 million vehicles in 2023. However, this year they’re ramping up Cybertruck production and introduced the new Model 3 into new markets.

And we think this should allow us to get to over 3 million vehicles of capacity when realized to the full extent.

Tesla reported on Tuesday its earnings results followed by a conference call where it teased its upcoming Robotaxi and its next-generation platform saying its “purpose-built Robotaxi product will continue to pursue a revolutionary ‘unboxed’ manufacturing strategy”.

Earlier in the day, Tesla announced the new Performance variant of its sedan Model 3 with deliveries in the United States starting already next month. The new version starts at $45,490 (after applying the $7,500 Federal EV tax credit) and goes from 0 to 60mph in 2.9 seconds.

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