Tesla FSD prices to increase as capabilities improve, Musk says

Investing.com-- Subscription prices for Tesla’s “full self driving” (FSD) software will increase as the service’s capabilities improve, CEO Elon Musk said on Thursday evening.

Musk’s comments come as Tesla Inc (NASDAQ: TSLA) prepares to stop offering its FSD service as a one-time purchase and move entirely into a subscription-based model, currently priced at $99 a month. Tesla buyers can still purchase FSD as a one-time option, for $8,000, until February 14.

“The $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD),” Musk said in a social media post.

Tesla has not provided a clear timeline for when it plans to begin offering unsupervised FSD, despite Musk having touted such an offering for years.

The service still contains the “supervised” disclaimer on Tesla’s website, after the company was hit with a wave of lawsuits and regulatory scrutiny over its claims on FSD’s capabilities.

Musk has constantly touted robotics, artificial intelligence and autonomous vehicles as the next big growth drivers for Tesla, as the electric vehicle maker grapples with years of cooling sales in its core auto division.

Tesla is currently testing its driverless robotaxis in Austin, Texas, having recently started testing the service without a human safety monitor.

Musk said in a separate post that production of Tesla’s Cybercab, a two-seater fully autonomous vehicle, begins in April. But he had earlier warned that initial production of the vehicle and Tesla’s Optimus humanoid robot will be “agonizingly slow.”

You May Also Be Interested In

• Tesla (TSLA) PT Raised to $400 at Jefferies
• Tesla (TSLA) PT Raised to $417 at Morgan Stanley
• UnitedHealth rallies premarket while chip stocks retreat; TSMC earnings lift A