Tesla officially raises price of FSD by as much as 50%

Tesla increases the price of FSD

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Tesla has officially raised the price of its FSD package to $15,000 in the U.S. Elon Musk announced on August 21st that the price of FSD would be increasing on September 5th, after the release of FSD Beta 10.69.2.

Although Tesla has yet to release FSD Beta 10.69.2, the current beta, 10.69.1.1 has started going out to additional testers.

The FSD package increased by $3,000 in the U.S., a 25% increase, while in Canada it has also increased, but by a much larger percentage. FSD in Canada now costs $19,500 CAD, up a whopping 50%.

This is the second price increase of FSD this year. In January Tesla also raised the price of FSD to $12,000, up from $10,000 (historical prices of FSD). FSD has seen significant increases in the last few years. In April 2019 FSD cost only $5,000, but it saw several price increases that year.

Tesla introduced FSD Beta in Canada in March of this year with FSD Beta 10.11.1.

We can expect similar price increases in other regions as Tesla rolls out FSD Beta to Europe later this year.

The price of Enhanced Autopilot, which Tesla recently reintroduced in the U.S. stayed the same at $6,000, however, in Canada it also saw a price hike. EAP now costs $7,800 in Canada.

Not surprising, many Tesla owners are unpleased with the price increase, considering that city-level Autopilot is still not widely available and requires being accepted into Tesla's beta program.

Without being enrolled in the FSD Beta program, FSD only grants access to Traffic lights and Stop Sign Control in addition to the capabilities of Basic Autopilot, and Enhanced Autopilot. All new Teslas include Basic Autopilot, which includes Traffic-Aware Cruise Control (TACC) and lane keeping. Enhanced Autopilot, a $6,000 option, adds several key features such as Navigate on Autopilot, Auto Lane Change, Autopark, Summon, and Smart Summon.

Beta 10.69.1.1 has been going out to more testers and is currently on about 7% of all tester vehicles., with another few percent having a pending install. Elon projects FSD Beta 10.69.2 to release by the end of this week. FSD Beta is still expected to become widely available to everyone that has purchased or subscribed to FSD before the end of the year.

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

“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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Tesla on FSD: Close to License Deal With Major Automaker, Announces Miles Driven on FSD v12

On Tuesday Tesla reported its earnings results followed by a conference call that brought several updates on the company’s roadmap for future vehicles, autonomous driving, Optimus and much more.

While answering a question from Goldman Sachs analyst Mark Delaney about updates on the licensing of Tesla’s Full Self-Driving (FSD) technology, Elon Musk said they’re talking to one major auto manufacturer and there’s “a good chance” the company signs the first deal before year-end. However, he went on to say that it would probably be three years before the necessary changes are integrated into the car.

I think we have a good chance we do sign a deal this year

Brings Benefits to Tesla

The technology would require other automakers to start using the same cameras and hardware as Tesla, meaning that Tesla may not only generate money from licensing FSD but also from selling the hardware itself. However, there would be other benefits as well. When licensing FSD, Tesla would likely own the data gathered with the system well, further helping them with data and edge cases that need to be solved to reach full autonomy.

people don't understand all cars will need to be smart cars… Once that becomes obvious, I think licensing becomes not optional.

Tesla’s Chief Financial Officer Vaibhav Taneja commented pointing out that future partners “take a lot of time in their product life cycle” resulting in a gap between the deal signing and the arrival in the market of Tesla’s FSD software.

Miles Driven With FSD

On the conference call, Musk added that Tesla now has over 300 million miles that have been 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 will continue to increase its “core AI infrastructure capacity in the coming months” adding that in the first quarter, it completed the transition to hardware 4.0 with China now receiving the upgraded FSD computer and cameras.

Over the weekend, Tesla reduced the price of FSD 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.

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.

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