Tesla has recently made a significant change to its Full Self-Driving pricing strategy that is set to address a recurring complaint among many owners – the inability to transfer the FSD suite to a new vehicle.
Previously, Tesla owners who purchased the Full Self-Driving suite outright were not allowed to transfer the purchase to a new vehicle, forcing them to buy it again each time they upgraded their car. This could become quite costly for owners over time. However, Tesla introduced a one-time transfer option in Q3 2023, and again last year, providing some relief to owners.
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 has been welcomed by many who are looking to upgrade to newer vehicles with updated hardware and AI versions.
The latest development in Tesla’s Full Self-Driving offering came from CEO Elon Musk, who announced that the suite will now only be available through a subscription model, priced at $99 per month. This change eliminates the need for owners to worry about transferring the FSD suite to new vehicles, as everyone will now pay on a month-to-month basis.
The shift to a subscription-only platform opens up possibilities for different pricing tiers, potentially offering more affordable options, a pay-per-mile system, and even bundling the FSD program with other benefits like Supercharging and vehicle protection plans. While these details are speculative, the elimination of transfer issues is a major advantage for owners.
From a financial perspective, the subscription model may make it easier for individuals to justify trying out the Full Self-Driving suite. Additionally, Tesla stands to benefit from a higher take rate as more drivers using the suite will provide the company with valuable data to help advance its autonomous driving technology.
Ultimately, by making the Full Self-Driving suite more accessible through a subscription model, Tesla is not only addressing a common complaint among owners but also potentially increasing adoption rates and gathering more data to further develop its autonomous driving capabilities.