Elon Musk recently went to Twitter, as he does, to announce an upcoming $1,000.00 raise in the price of Full Self Driving additions to Tesla’s cars. He Says that the price hike will be probably coming July 1st. Only a couple of weeks ago Tesla announced an upcoming subscription model for the same Autopilot functions.
He also used the announcement as an opportunity to sell more cars in the meantime, adding a link and mentioning that the process to order takes only a couple of minutes. The current price of Autopilot is $7,000.00.
The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval. It that point, the value of FSD is probably somewhere in excess of $100,000.
— Elon Musk (@elonmusk) May 18, 2020
Musk pointed out that they intend to roll out more features over time, and that all of them will add perceived value to their cars. They’ve had this notion of increased price of their FSD cars for a long time, with Musk previously going so far as to suggest at some point it won’t be commercially viable to sell their vehicles straight to consumers, because they will be able to make more money from an AI-taxi fleet.
As they add these features, such as the upcoming stop at red lights and stop signs, and get regulatory approval, these price adjustments may become more frequent. Musk himself thinks that’s FSD will be valued as a $100,000.00 + in the future.
While the logic of “if the car can drive itself than it’ worth as much as several taxi-driver’s salaries,” can be followed simply enough, the idea of value is a bit more complicated than that. For instance, if this was a delivery van with 600 miles of range, and an AI controlled series of little delivery drones that launch from the rooftop…any price would seem reasonable for that solution. However, in the foreseeable future, a mid-range family sedan can’t handle a software package costing three times its starting price.
What do you guys think? Is this a slippery slope back towards unaffordable Teslas, or a calculated grab at everyone’s stimulus check?