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Tesla (TSLA) Reduces FSD Monthly Subscription Price by 50%
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Tesla, Inc. (TSLA - Free Report) has reduced its Full Self-Driving (FSD) monthly subscription fee by 50% to $99 from $199. However, the price to buy TSLA’s FSD suite outright has remained unchanged at $12,000.
The FSD suite equips the vehicle with AI functionality of Basic Autopilot and Enhanced Autopilot. It also provides Autosteer on City Streets and Traffic Light and Stop Sign Control. The monthly subscription for FSD also provides all these features to people who want to try those out before making a hefty investment.
The FSD subscription was first launched in July 2021. The automaker also offered a $99 monthly subscription option for vehicles equipped with Enhanced Autopilot. But now the company offers Autopilot as standard on all new purchases.
The latest price reduction move came less than a day after Elon Musk, CEO of Tesla, liked a post on X. The post suggested that the monthly subscription fee of $99 would improve the take rate.
TSLA continues to push FSD on its customers. Elon Musk recently made it mandatory for Tesla’s service center employees to take prospective buyers on a demo ride with FSD.
So far, FSD has received a mixed response from the buyers. The company has made several software updates to improve FSD functionalities. The reliability of FSD improves with every hour it is driven on roads due to the use of a neural network. The FSD users already have more than one billion miles of data for the suite.
The FSD suite is not fully autonomous yet and still requires human intervention from time to time.
Tesla vehicles that were using Autopilot are currently under federal regulators’ investigation. Those vehicles crashed into stationary emergency vehicles and it resulted in 15 injuries and one fatality. Both Autopilot and FSD have been recalled.
Elon Musk has emphasized on choosing the FSD suite outright over its subscription service.
The automaker is set to reveal its robotaxi on Aug 8, 2024, which reportedly utilizes TSLA’s latest vehicle platform.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.3 and $1.01, respectively, in the past 60 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 60 days.
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Tesla (TSLA) Reduces FSD Monthly Subscription Price by 50%
Tesla, Inc. (TSLA - Free Report) has reduced its Full Self-Driving (FSD) monthly subscription fee by 50% to $99 from $199. However, the price to buy TSLA’s FSD suite outright has remained unchanged at $12,000.
The FSD suite equips the vehicle with AI functionality of Basic Autopilot and Enhanced Autopilot. It also provides Autosteer on City Streets and Traffic Light and Stop Sign Control. The monthly subscription for FSD also provides all these features to people who want to try those out before making a hefty investment.
The FSD subscription was first launched in July 2021. The automaker also offered a $99 monthly subscription option for vehicles equipped with Enhanced Autopilot. But now the company offers Autopilot as standard on all new purchases.
The latest price reduction move came less than a day after Elon Musk, CEO of Tesla, liked a post on X. The post suggested that the monthly subscription fee of $99 would improve the take rate.
TSLA continues to push FSD on its customers. Elon Musk recently made it mandatory for Tesla’s service center employees to take prospective buyers on a demo ride with FSD.
So far, FSD has received a mixed response from the buyers. The company has made several software updates to improve FSD functionalities. The reliability of FSD improves with every hour it is driven on roads due to the use of a neural network. The FSD users already have more than one billion miles of data for the suite.
The FSD suite is not fully autonomous yet and still requires human intervention from time to time.
Tesla vehicles that were using Autopilot are currently under federal regulators’ investigation. Those vehicles crashed into stationary emergency vehicles and it resulted in 15 injuries and one fatality. Both Autopilot and FSD have been recalled.
Elon Musk has emphasized on choosing the FSD suite outright over its subscription service.
The automaker is set to reveal its robotaxi on Aug 8, 2024, which reportedly utilizes TSLA’s latest vehicle platform.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $1.3 and $1.01, respectively, in the past 60 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 60 days.