Elon Musk’s company launched a subscription scheme for owners of Tesla electric vehicles to have full self-driving for a monthly fee.
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Until now, the full self-driving (FSD) feature in Tesla electric vehicles could only be purchased for an extra $10,000 at the time of car purchase, but this will soon be a thing of the past. Elon Musk’s company launched a subscription plan to offer this service to all Tesla drivers for $199 per month.
FSD capability allows the vehicle to be completely self-driving without passenger intervention. Features include lane changing on freeways and parking assistance.
However, Tesla has always stressed that self-driving software “does not make its vehicles autonomous.” Even with this function, “they require full attention from the driver, who must have his hands on the wheel.” This point is especially emphasized after several road accidents were reported due to the use of this feature.
Experiencing Plaid pic.twitter.com/nipaxKbkjY
– Tesla (@Tesla) June 18, 2021
“[Full self-driving] capability subscriptions are currently available to eligible vehicles in the United States. Check your Tesla app for updates on availability in other regions,” Tesla wrote on its website.
Only Tesla vehicles equipped with an FSD computer 3.0 or higher can access the subscription for the software. Those without the equipment can upgrade their car hardware for $1,500.
This scheme will allow Tesla to generate extra income in the long term, since for many buyers it will be easier to pay $199 per month indefinitely, than $10,000 at the time of purchase.
Zachary Kirkhorn, Tesla’s chief financial officer (CFO), said in April that subscriptions would generate recurring income for the company, although “there could be a period of time in which cash reduces in the near term.”