Tesla (TSLA.O) has reduced the price of its Full Self-Driving (FSD) software to $8,000 from $12,000 in the United States, as CEO Elon Musk intensifies focus on autonomous driving technology.
Musk envisions this technology as a major revenue generator for Tesla, the world’s leading automaker by market value. Despite his efforts, full autonomy remains unachieved amidst increasing regulatory and legal pressures.
Earlier this month, following a Reuters report that Tesla had discontinued plans for a budget-friendly, mass-market vehicle in favour of developing robotaxis, Musk announced an August 8 unveiling for the robotaxis.
Tesla’s website now lists the FSD option at $8,000 or offers it on a monthly subscription basis for $99.
To boost accessibility, Tesla has also slashed its monthly subscription fee from $199, offering all Tesla owners a free month of FSD software.
Additionally, facing declining sales and a competitive market for electric vehicles, Tesla has implemented price reductions across its vehicle range, including a nearly $2,000 decrease per model in China, mirroring its U.S. pricing strategy.
