Tesla’s Full Self-Driving pricing strategy has been a point of contention for many owners in the past due to the lack of transferability of the FSD suite to a new vehicle. Previously, if a Tesla owner purchased the Full Self-Driving suite outright, they were not able to transfer it to a new vehicle without having to repurchase it, which could be costly. However, Tesla introduced a one-time transfer opportunity in Q3 2023 and again last year, allowing owners to upgrade to newer vehicles with updated Hardware and AI versions without the financial burden of repurchasing the $8,000 suite repeatedly.
Now, ahead of the February 14th deadline, Tesla is once again allowing owners to transfer their Full Self-Driving suite to a new vehicle. This move comes as Tesla CEO Elon Musk announced that the Full Self-Driving suite will now be available only through a subscription platform, priced at $99 per month. This shift to a subscription-only model offers various advantages, including the potential for tiered pricing options, a pay-per-mile platform, and the opportunity to bundle the program with other benefits such as Supercharging and vehicle protection programs.
One significant advantage of the subscription-only model is the elimination of the transferability issue that has been a concern for many Tesla owners. With everyone now paying month-to-month for the Full Self-Driving suite, the hassle of transferring the purchase to a new vehicle is completely eliminated. This change makes it easier for owners to try out the suite and justify the cost from a financial perspective.
Moreover, Tesla stands to benefit from a higher take rate with the subscription model, as more drivers using the Full Self-Driving suite would provide the company with more data to reach its goal of accumulating 10 billion miles for safe unsupervised FSD. By reducing the price and making the program more accessible, Tesla can attract more users and gather valuable data to further develop its autonomous driving technology.
In conclusion, Tesla’s shift to a subscription-only model for the Full Self-Driving suite not only addresses the issue of transferability but also opens up new possibilities for pricing options and benefits for users. With this change, Tesla aims to make its FSD technology more accessible and drive innovation in the autonomous driving space.