Tesla is transitioning its Full Self-Driving (FSD) software to a subscription-only model in the United States, prompting discussions among owners about potential pricing strategies. The move follows the removal of the outright purchase option over the weekend.
Subscription Price Point Debated
CEO Elon Musk has indicated that the subscription price for FSD will likely increase as the software becomes more advanced. Currently, the FSD subscription is priced at $99 per month, with a reported take rate of approximately 12 percent. This figure is crucial for Musk to meet a significant portion of his new compensation package, which is tied to FSD’s adoption rate.
The situation presents a dual challenge: Tesla needs to establish a price that encourages wider adoption, while owners seek a subscription fee that is perceived as attractive and valuable.
Owner Suggestions for FSD Pricing
In light of the shift, Tesla owners have shared a range of proposals for how the company could structure its FSD subscription pricing:
Lower Monthly Rates
Many owners expressed willingness to subscribe at the current $99 monthly rate, but suggested that a lower price point, such as $49 per month, would significantly increase adoption. Another suggestion humorously referenced Musk’s affinity for the number, proposing $69 per month.
Differentiated Pricing for Autonomy Levels
With the introduction of an unsupervised version of FSD, some owners proposed tiered pricing based on the level of driver supervision required. One suggestion included a $50 per month subscription for supervised FSD, while an unsupervised version, potentially including insurance, could be priced at $300 per month. This approach acknowledges that not all users may require or desire the highest level of autonomy.
Duration-Based Subscription Options
A duration-based model, offering daily, weekly, monthly, and annual rates, was also suggested. This model could incentivize longer-term commitments with reduced pricing for extended periods. For instance, an annual subscription could be offered at $999, while daily access might be priced around $10 and a weekly pass at $30. However, the article notes that Tesla’s long-term vision for FSD as the future of transportation might not align with short-term, daily options.
Feature-Based Tiered Subscriptions
Perhaps the most popular suggestion among owners involves a tiered system where users can select and pay for specific FSD features. Under this model, a basic package including supervised driving and Autopark could cost $50 per month, with additional features like Summon increasing the price to $75. This allows consumers to tailor their subscription to the features they will use most frequently.