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Tesla Launches First Full Self-Driving Subscription Model

  • Nadine Ghiran - SUBTA
  • Jul 21, 2021
  • 3 minute read

Tesla’s long-anticipated subscription is finally here. Eligible Tesla owners can now subscribe to the company’s premium driver assistance features for $199/month. The subscription will give drivers access to Full Self-Driving (FSD) capabilities like automatic parallel and perpendicular parking.

Elon Musk, Co-Founder and CEO of Tesla, has been teasing the subscription for more than eight months. One of the first reports of a subscription appeared in late December 2020 when Musk made an unveiled reply to a tweet, stating, “We will release FSD subscription early next year.”

Tesla’s FSD subscription is the first of its kind and may set the bar for other automotive subscriptions currently on the market. Read on to learn more about the impact Tesla’s subscription could have on the industry.

Futuristic Features of Tesla’s FSD Subscription

To be eligible for the subscription, customers must have a vehicle with an FSD computer 3.0 or above, plus Basic or Enhanced Autopilot, according to Tesla. Customers can easily see which hardware their vehicle has through the Tesla application.

The FSD software used to be available for a one-time purchase of $10,000, but Tesla’s recent move toward a subscription model also impacted its pricing model.

Drivers who have both the 3.0 hardware and Basic Autopilot can get the FSD subscription for $199/month. However, if a vehicle is already equipped with the Enhanced Autopilot software, the new subscription costs $99/month.

The FSD subscription offers customers a wide range of capabilities, according to the Tesla website, including:

  • Navigate on Autopilot
  • Auto Lane Change
  • Autopark
  • Summon
  • Smart Summon
  • Traffic and Stop Sign Control (beta)

Near the beginning of Q3 2021, Tesla vehicle owners received a notice providing details of the subscription. 

According to in-app screenshots Tesla drivers have been sharing via Twitter, customers are required to upgrade their hardware for $1,500 if their vehicle is not equipped with the one that works with the subscription service. 

However, this policy may be in transition. “Tesla cars with Full Self-Driving Capability and Autopilot Computer 2.0 or 2.5 are eligible for a complimentary upgrade to the FSD Computer,” stated the company. 

Some customers are expressing concern on online forums that all Tesla cars should already have FSD hardware.

Nonetheless, Tesla is offering its customers a unique driving experience that they won’t find elsewhere. The company accounts for 71% of the electric car market in the U.S. and is now paving the way for an additional revenue stream.

Tesla’s Innovation Spans Multiple Industries

Tesla’s subscription has been in the works for some time now, originally starting as a pay-as-you-go idea. The delay was partly due to major improvements being made “to the vision stack,” according to a tweet by Musk.

The FSD experience removes the driver’s physical interaction with the car. Tesla is shifting its development from that of a traditional automotive brand and is instead continuing to look at its vehicles the way it would a software product, much like Apple, according to Harvard Business Review

Tesla improves the software functionality of its vehicles remotely every few weeks, which offers an added layer of convenience and access to cutting-edge technology.

Compared to other car subscriptions, Tesla’s is the only one that doesn’t offer a rotation of vehicles but instead provides cost-effective software stability and FSD capabilities. 

Not only is the Silicon-Valley leader paving the way for futuristic features, Tesla’s step into the subscription space could also spark new innovation within the automotive industry.

Key Takeaways:

  • Tesla launched its first-ever subscription for Full Self-Driving capabilities.
  • Customers whose vehicles are equipped with FSD computer 3.0 or above, plus Basic or Enhanced Autopilot, pay $199/month or $99/month.
  • The required upgrade to get the FSD subscription costs $1,500, and customers are concerned.
  • Compared to other car subscriptions, Tesla’s is the only one that doesn’t offer a rotation of vehicles but instead provides cost-effective software stability and FSD capabilities.

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