Tesla has decided to slash its Full Self-Driving monthly subscription price in half to now $99 a month.

This comes after Elon Musk said Tesla would keep increasing Full Self-Driving prices as the system gets better.

Much has been said about Tesla’s decision to sell a ‘Full Self-Driving’ (FSD) package before it actually solved self-driving. It’s a controversial decision.

One thing is clear: Tesla has used it to sell cars and encouraged owners to buy the package early.

CEO Elon Musk went as far as claiming that Tesla vehicles are now “appreciating assets” because they are “capable of becoming self-driving,” and Tesla will increase the price of the FSD package

This was true for years, but Tesla reversed course last year when it slashed its FSD package price from $15,000 to $12,000.

Tesla also offers owners to buy a monthly subscription to FSD. Tesla originally offered it for $199 per month.

The price drop came after Tesla started to mandate FSD demo drives for all new deliveries and offered 1 month of free FSD trial to all existing owners in North America.

Those also all came as Tesla is deploying FSD v12, a new version of its “supervised Full Self-Driving”, which requires driver attention at all times. The new version is fully-powered by AI and is believed to be a significant advancement compared to previous software versions.

Electrek’s Take

Tesla is looking to increase FSD take rate at all cost right now. This should certainly help on the subscription side, but only there because it makes no sense to buy the FSD package anymore.

At $12,000, it would take 10 years to get into the money compared to a monthly subscription.

Of course, Tesla could increase the price back up at any time but still. It doesn’t make much sense right now.