Tesla, a leading innovator in electric vehicles and self-driving technology, announced on Friday that they have lowered the price of Supervised Full Self-Driving to $99 per month from $199. This news was confirmed after circulating online speculation. The decrease in price is expected to attract more subscribers to Tesla FSD, potentially increasing revenue.
Following this announcement, Tesla stock saw a slight increase in after-hours trading. At $99 a month, it would take just over 10 years to accumulate $12,000 in subscription fees. Additionally, Tesla now offers free FSD transfers to new Tesla vehicles, further incentivizing customers to take advantage of the service.
Despite being named Full Self-Driving, the system is classified as Level 2, which still requires human drivers to remain attentive and prepared to take control at any moment. Tesla activated one free month of FSD for eligible vehicles in late March, generating excitement around the potential of the service.
Over the past week, speculation grew that the FSD subscription rate would be halved to $99, a price that Tesla CEO Elon Musk openly showed support for on social media. As a result, the actual announcement did not come as a significant surprise. In late trading, Tesla stock rose by 0.7%, following a 2% decline during regular Friday trading. The stock had gained 3.7% over the course of the week, driven by expectations surrounding Musk’s upcoming robotaxi unveiling on Aug. 8. For more stock market updates and news, follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson.
