Tesla Prepares To Increase The Price Of Full Self-Driving With New Features


Tesla is preparing to raise the price of its Full Self-Driving package again as new features arrive – delivering on the promise of increasing value.

There’s a lot going on about Tesla’s approach to autonomous driving technology that sets it apart from the rest of the automotive industry.

The automaker refuses to use lidar sensors and instead plans to rely primarily on computer vision technology using cameras.

He also started installing the necessary hardware in all of his vehicles years ago when he thought self-driving had become mainly a software problem.

But more specifically, Tesla started pre-selling a “Full Self-Driving” package in its vehicles years before it intended to make the technology available via software.

It is a somewhat daring decision that has been criticized for various reasons.

Some say it is confusing for customers to think that Tesla vehicles are currently capable of driving themselves, which is not the case.

Others have also criticized Tesla for often changing the price of the package from top to bottom, even if they did not deliver the features promised in the package.

Over the past year, CEO Elon Musk has clarified Tesla’s pricing strategy for the “Full Self-Driving” package: Tesla will increase the price of the package by introducing new features.

Tesla is currently selling the package for $ 7,000:

The increase occurred late last year after Tesla incorporated some autopilot functionality into the package.

Now Musk says Tesla will likely raise the price in July. Asked about a possible price increase on Twitter, he replied:

Yes, probably July 1st.

This would coincide with Tesla’s worldwide release of the long-promised ability to “recognize and respond to traffic lights and stop signs”.

As we previously reported, Tesla is currently testing capacity in its early access program, and Musk expects it will be available in the United States in a few weeks and a few months worldwide.

Tesla had to set aside some revenue from its sales of Full Self-Driving packages as unrecognized revenue because it did not fully deliver on the promised functionality.

In 2019, Tesla had generated more than half a billion unrecognized revenue from the sale of the Full Self-Driving package.

Taking Electrek

With the difficult economic situation and the inevitable low supply of Tesla vehicles in the second quarter, Tesla could try to compensate by offering more FSD functionality and trying to recognize more revenue.

If Tesla were able to recognize hundreds of millions of dollars in FSD revenue, it could make a significant difference in a quarter that looks more and more like a bloodbath for Tesla until they can reopen the plant. Fremont.

It might be a possibility to keep an eye on.

What do you think? Let us know in the comment section below.

FTC: We use automatic affiliate links to generate income. More.

Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.


Please enter your comment!
Please enter your name here