Breaking: Tesla announces FSD Subscription pricing – US$99-199 per month, is that fair to existing owners?

The long-awaited Full Self Driving subscription prices have just been confirmed on Tesla website. After much speculation around the pricing, we now know that the FSD package will cost...

The long-awaited Full Self Driving subscription prices have just been confirmed on Tesla website.

After much speculation around the pricing, we now know that the FSD package will cost US$99.00 per month for those who have Enhanced Autopilot now, or US$199 per month for those who purchased their car with basic Autopilot.

Currently, the price to purchase the Full Self Driving Capability is US$10,000 and in Australia, that cost is A$10,100. Setting a subscription price places Tesla in somewhat of an awkward position… price the subscription too high and adoption rates would be too low, therefore reducing the amount of potential income. Price the FSD package too low and those owners who bought outright, would feel like they got the raw end of the deal.

While this is US-only for now.. if we convert the price from US to AUD, the US$99 becomes AUD – $147.11 +10% = A$147.11pm. US$199 becomes A$268.83 +10% = A$295.713pm.

The announced prices definitely feel like it skews towards affordability and more people having it. If we calculate the break-even point, based on the price of FSD today (it’s likely to go up, but so is the subscription), then you’d be better to buy FSD outright if you keep the car longer than 4.1 years.

There are other factors in the decision process to buy or subscribe. It may be that buyers simply don’t have an extra $10k to drop on a software upgrade, particularly if you’ve stretched financially to get a Tesla. In that subscription, a subscription looks very inviting.

https://twitter.com/klwtts/status/1416228859813371908

With this announcement, Tesla is limiting the FSD subscriptions to US-only, so those outside the US can relax, for now.

One of the other big questions on FSD Subscription was around the flexibility in turning it on and off. The Subscription page on Tesla’s website addresses this issue.

You can cancel your FSD capability subscription at any time from the Tesla app or your Tesla Account. Monthly subscription payments will not be prorated. After your cancellation is processed, you will continue to have FSD capability features for the remainder of the current billing period.

This means trying FSD is pretty commitment-free, you can essentially add it when you need and remove it when you don’t. If your vehicle has Full Self-Driving computer 3.0 or above, plus Basic Autopilot or Enhanced Autopilot, you are eligible to subscribe to FSD capability.

Tesla is still working on their FSD Capability, with the list of features on the website showing a pretty big to-do-list.. regarding the driving of city streets.

  • Navigate on Autopilot
  • Auto Lane Change
  • Autopark
  • Summon
  • Full Self-Driving Computer
  • Traffic Light and Stop Sign Control

Upcoming:

  • Autosteer on city streets

As we’ve seen from videos online, those testing FSD beta, this is actively being developed and has shown the ability to turn corners, navigate roundabouts and more. The system certainly isn’t perfect, but progress is being made.

If Smart Summon takes care of the slow-speed driving, city streets takes care of the medium-speed driving and navigate on autopilot takes care of the high-speed driving, you get pretty close to having the pieces of the puzzle for autonomy.

Even once these pieces are available in a production build of their software, it won’t be perfect and for the foreseeable future, drivers will still be required to pay attention.

Details at Tesla.com

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Creator of techAU, Jason has spent the dozen+ years covering technology in Australia and around the world. Bringing a background in multimedia and passion for technology to the job, Cartwright delivers detailed product reviews, event coverage and industry news on a daily basis. Disclaimer: Tesla Shareholder from 20/01/2021
5 Comments on this post.

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  • Dee
    17 July 2021 at 2:01 pm

    Subscription? What subscription, all those that forked out for FSD, even many years ago, were promised FSD if they bought the hardware once, and the software would be released when ready.

    Even those with the original MobileEye v1 hardware should get a free upgrade to the hardware required to run this AND it should work with no additional costs!

    Leave a Reply
    • Douglas
      17 July 2021 at 6:25 pm

      Those that paid outright for FSD won’t need to pay any more. Those that didn’t pay for FSD before now can subscribe if they want or pay outright.

      But I can’t speak to those who got MobileEye as I don’t know if they get less than they were promised.

      Leave a Reply
      • David Jensen
        17 July 2021 at 7:12 pm

        Is not the 10k fsd just for the first owner .It doesn’t carry over to the next owner.

        Leave a Reply
        • DR KIERAN JASON LEE
          17 July 2021 at 8:08 pm

          It does carry over, it belongs to the car not the owner. It’s only ever removed if Tesla reclaim the car in which case it belongs with neither user nor car. So there’s a difference between monthly and buying out right. Another difference is you could subscribe one month a year for that annual road trip with monthly subscription option if that’s what you wanted to do.

          Leave a Reply
    • Tim
      18 July 2021 at 5:32 pm

      I just want the subscription option in Australia ASAP to test it out before deciding to buy for my M3 (which I only got while I wait for the new X to come out ‘late 2022’)

      Hopefully as it costs A$10,000 outright (compared to US$10,000 in US) the subscription will be A$199/month here as well. If it’s US$199/m equivalent (in AUD) then the payoff for buying upfront will be much better than in the US – or they may increase the upfront price to have the same 4 year payoff as the US does.

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