Tesla Reduces Full Self-Driving Subscription Costs in US and Canada

Rate cut by Tesla: Tesla has announced a significant price reduction for its Full Self-Driving (FSD) subscriptions in the United States and Canada. The move comes as the electric vehicle giant aims to boost adoption in the face of declining demand and increased competition in the market.

According to Tesla's announcement, the FSD subscription will now be available for $99 per month in the U.S. and C$99 (approximately $71.88) in Canada. This marks a substantial decrease from the previous subscription price of $199 per month.

CEO Elon Musk has long promoted the potential of Tesla's FSD technology as a lucrative revenue stream for the company. However, Tesla has faced challenges in delivering on Musk's vision of a fully autonomous driving experience. Regulatory and legal scrutiny regarding Tesla's safety standards and marketing claims have added further complexity to the situation.

It's worth noting that Tesla emphasizes that its FSD software does not render its vehicles fully autonomous and still requires active supervision from the driver. Despite this, the company has been striving to enhance its self-driving capabilities.

To encourage more customers to try out the FSD technology, Tesla recently announced that it would offer a one-month trial of the driver-assist feature to both existing and new customers in the U.S.

The decision to lower the subscription price reflects Tesla's strategy to attract more users to its FSD technology amid market challenges and increased competition. As the automotive industry continues to evolve towards autonomous driving, Tesla's moves in this space will likely remain closely watched.

With PTI Inputs