The cost of Tesla's Full Self Driving has increased since it was revamped in 2019. Those lucky enough to buy FSD in April 2019 got it for the price of $5,000. Since then the price has risen as high as $15,000 only to be lowered later.
Elon Musk warned consumers through X/Twitter that FSD would be more expensive. On August 21 2022, he tweeted: After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5. Current price will be honored for orders made before September 5 but delivered later.
Tesla reorganized its Autopilot and FSD packages three years ago; basic Autopilot was introduced and became standard on every vehicle, while FSD was priced at $5,000. Enhanced Autopilot was removed as an option at the time, but was later reintroduced as a $6,000 option in June of 2022.
Before 2019 FSD was an add-on that required also buying Enhanced Autopilot. Enhanced Autopilot cost $5,000 and FSD was a $3,000 option on top of that if ordered with the vehicle. If you ordered FSD after taking delivery then it cost $4,000, which later went up to $5,000.
It can only be assumed that there were a lot of buyers for FSD when Tesla rearranged their offerings in 2019, as the price for FSD went up the following month and has been on the rise since.
In fact, Tesla raised the price again three months after the first release, and eighteen months later, it had doubled to $10,000. 2022 started with another jump to $12,000 in January, and nine months later, the price went up again.
However, it looks like the buy-rate may have dipped as Tesla started dropping the price of FSD in September 2023.
Historical FSD Prices
Historical prices of Tesla's Full Self-Driving add-on since the revamp in 2019.
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
Tesla's CEO has made no qualms about the value of the program. At a shareholders' meeting in August, he said Tesla's engineers are producing breakthroughs in artificial intelligence. "We're solving a very important part of AI and one that can ultimately save millions of lives. And prevent 10 of millions of serious injuries by driving just an order of magnitude safer than people," said Musk. Since its inception and to this day, Musk believes that Teslas will be fully autonomous. He sees a future where your car would drive you to work, then operate as a ride share until you need to go home.
While Musk said the price would increase to $15,000 in North America, it skyrocketed to $19,500 in Canada, more than a 50% boost from what it cost in August. Although there is a monthly subscription offered in the U.S., there currently isn't one offered north of the border.
Although the price of FSD has continued to climb since Tesla revamped their FSD pricing structure in 2019, we witnessed Tesla's first price drop in the driver assist feature in September 2023. On the first of September, Tesla lowered the price of FSD by 20% in the U.S., down to $12,000. This brought FSD back to the price it was back at the start of 2022. However, in April 2024, Tesla once again lowered the price of FSD to $8,000, making it much more affordable, although the trend is unlikely to continue. Tesla may be testing the waters to find the optimal price. It'll be interesting to see where Tesla goes from here.
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Tesla has unveiled its 6-seat Model Y variant in China, known as the Model Y L. This new variant of one of the world’s best-selling vehicles comes with a longer wheelbase, adjusted C-pillar design, and most importantly, a six-seat interior layout.
The vehicle’s specifications have been officially listed in a filing with China’s Ministry of Industry and Information Technology (MIIT), confirming a launch for this fall.
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The addition of a longer wheelbase and a more spacious third row is a fantastic addition for the Model Y’s family utility, and positions this variant as sort of a mini Model X, but let’s compare the sizes to really know how this new Model Y compares to a Model X.
Meet the Model Y L
The defining feature of the new Model Y L is its six-seat configuration. This layout has previously been exclusive to the larger and more expensive Model X. While Tesla has offered the Model Y in a 7-seat configuration before, the third row was much too small to be utilized by anyone but small children.
Comparing Model Y L to the Model X
@xiaoteshushu on X
Let’s compare this upcoming Model Y L to the regular Model Y and the Model X.
Vehicle/Dimension
Wheelbase
Overall Length
Model Y
2,890mm / 113.8 in
4,797mm / 188.9 in
Model Y L
3,040mm / 119.7 in
4,976mm / 195.9 in
Model X
2,965mm / 116.7 in
5,060mm / 199.2 in
The new wheelbase of 3,040mm is a significant stretch from the standard wheelbase, and in fact, is longer than the Model X’s wheelbase of 2,965mm. However, the overall length of the vehicle is 84mm (~3 inches) shorter than the Model X. This means the vehicle sits neatly between the current Model Y and Model X, filling a much-needed gap.
While this Model Y L is slightly smaller than the Model X, it doesn’t necessarily mean that it’s smaller inside. The Model X features a much larger front end than the Model Y, accounting for several inches. When you line up the front wheel base of the Model X with this new Model Y, the vehicles are almost exactly the same length.
Tesla has designed this Model Y to be a bit more compact and efficient than the Model X, and likely much cheaper, while featuring the well-loved design of the new Model Y.
Other Specifications and Price
The MIIT filing also provided a detailed look at some additional specifications. The Model Y L is a dual-motor, AWD variant, so it will likely be more expensive than the current Model Y AWD that’s available in China today. Tesla charges an additional $6,500 USD when upgrading the Model X from a 5-seat configuration to a 6-seat layout, so we may see something similar here.
The extra length has been added behind the C-pillar, resulting in a longer rear profile for the Model Y L. To accompany this, Tesla has added an updated rear spoiler, similar to the one found on Performance variants, but not carbon fiber. There is also a new wheel design to complement the updated look, along with unique Model Y L badging and a new light gold paint option.
In classic Tesla fashion, no Tesla is slow - and the Y L has a 0-100 km/h (0-60mph) time of 5.9s, with a top speed of 217km/h. Alongside an 82.5 kWh LFP battery pack, the Model Y L boasts an impressive CLTC range of 688 km (427 mi).
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Launch & Availability
According to posts from Tesla China on Chinese social media, the new Model Y L is scheduled to launch in the fall of 2025. Its official listing in the MIIT database is essentially the final regulatory step required before sales can begin, which means the launch is really just around the corner. For now, it appears that Tesla intends to launch this vehicle only in China, as no other filings have been made in other regions. However, these could be revealed in the coming months.
The new Model Y L is a huge addition to Tesla’s lineup - one that addresses the Chinese preference for vehicles with longer wheelbases and additional passenger room in a compact SUV package. The question is - will this variant make its way to North America and Europe?
Solving real-world artificial intelligence - whether for autonomous driving, real-world robotics, or advanced reasoning - requires an almost unfathomable amount of computational power. To meet this challenge, Tesla has been developing its own custom AI training hardware while simultaneously purchasing hardware in the open market.
Now, the next-generation Dojo 2 chip has reportedly entered mass production with the world’s largest semiconductor manufacturer, TSMC. While many may consider this a side quest, expanding Tesla’s computing base will be necessary to achieve exascale supercomputing, which will be crucial for all of Tesla’s AI ambitions.
Elon Musk called Dojo 2 “a good computer,” and then followed up with a classic computer performance joke - Dojo 2 can indeed play Crysis at a billion frames per second.
While Tesla has effectively utilized powerful third-party GPUs to train its models to date, the Dojo supercomputer is a ground-up, application-specific solution designed for a single purpose. It will efficiently process massive amounts of video data for training neural networks. The Dojo 2 chip itself is the key that unlocks this potential.
Dojo 2 will train the vision-based neural nets that FSD relies on, allowing Tesla to process video from its massive global fleet of vehicles even faster. As Tesla continues to improve FSD, one of the biggest challenges has been the intake of video for handling difficult edge cases.
Hundreds of thousands of miles of training data may pass by before an edge case is identified and trained on, but it all needs to be analyzed, labeled, and processed, which is key for Dojo 2. Each new useful piece of training data will help Tesla proceed down the march of 9s, making FSD just that little bit better every time.
This process requires massive amounts of compute and training time - but it is an absolute necessity to improve FSD. Of course, this goes beyond just FSD in vehicles. Tesla’s humanoid robot, Optimus, also runs on FSD to navigate and interact with the physical world.
While it may be a custom version of FSD, it remains FSD at its core, which means the same neural nets that analyze the environment and build a 3D map of the world for your car perform the same work for Optimus.
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Custom Approach to AI Hardware
Dojo 2’s power doesn’t just come from raw compute; it comes from a series of architectural choices that make it excel at training FSD and differentiate it from general-purpose hardware, or even other AI-specific hardware.
To this end, Tesla is using TSMC’s new Integrated Fan-Out with Silicon-on-Wafer (InFO-SoW) packaging technology. For massive AI workloads, heat and the speed at which data moves between chips are often the biggest bottlenecks.
This new packaging technique allows for high-bandwidth connections directly between processing dies, which lowers latency and dramatically improves heat dissipation, all key to building massive and dense compute clusters.
Unlike general-purpose chips, Dojo 2 is designed with a custom instruction set, specifically built to train FSD. The cores are specifically made to accelerate the exact mathematical operations, like matrix multiples and systolic arrays, which form the backbone of Tesla’s vision-based neural networks.
By building its own hardware, Tesla can then integrate its own software and compilers directly with the silicon, optimizing for specific workloads and avoiding the performance penalties that can result from using third-party software, such as Nvidia’s CUDA.
The start of Dojo 2 may seem like a side quest for some, but it’s actually a key step for Tesla’s AI technologies that give them an advantage over the competition using off-the-shelf hardware. They’ll need to continue investing in custom hardware to improve FSD at a reasonable pace, rather than the current glacial pace we’ve seen over the last few months.
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