Tesla just dropped its FSD subscription pricing dramatically in the U.S., lowering the cost from $199 to $99 per month. However, not everyone is thrilled with the new pricing.
For owners who bought the Enhanced Autopilot package for $6,000 USD, Tesla offered a lower-priced FSD subscription of $99, instead of $199. However, with this new FSD price reduction, EAP owners are no longer receiving a discount.
FSD Subscription Expansion
Currently, the FSD subscription is only available in the U.S., but plans for expansion are underway. Tesla's Rohan Patel recently announced that the subscription will soon be available in Canada, alongside the introduction of an annual plan for Premium Connectivity.
This expansion into the Canadian market is anticipated to follow a similar pricing strategy, adjusted for the currency exchange rate, possibly setting the cost at approximately $140 CAD per month.
Update: Tesla has just announced that FSD subscriptions are now available in Canada! What’s even more surprising is the unexpectedly low subscription price of $99 CAD. Tesla took to X to announce the availability in Canada but unfortunately didn’t reveal any additional information regarding the subscriptions.
Is Buying FSD Still Worth It?
Despite the lowered subscription price, the outright purchase price for FSD remains steep at $12,000. This price point equates to subscribing to the service for over 10 years. Given that the average length of car ownership in the U.S. is about 8 years, this makes the current price of buying FSD unattractive to most. The saving grace of buying FSD is that you know what you're paying for the life of the vehicle and can avoid any potential subscription price increases.
Temporary Reduction or Long-term Strategy?
Tesla has not confirmed whether the price reduction is a temporary promotional tactic or a permanent adjustment. The timing coincides with Tesla's release of FSD v12 and its trial offer, suggesting that the company is keen on encouraging more drivers to experience FSD. This approach not only boosts user engagement but also accelerates the volume of data Tesla can collect to improve the system.
FSD With Referral Credits
Although Tesla hasn't adjusted the price of buying FSD, it is tweaking its referral program to accommodate the new price. Three months of FSD are now available through Tesla's referral program for 6,000 credits, reduced from the previous 12,000 credits.
Tesla's reduction in FSD in the U.S. and its planned expansion into Canada reflect a strategic initiative to make FSD more accessible and financially attractive to a broader audience. There's no doubt this change will increase the number of FSD subscriptions, but it'll be interesting to see how much. To break even, Tesla would need to double the number of subscriptions, but they likely have their eyes set much higher.
If you currently subscribe to FSD, Tesla has automatically reduced future payments to the lower $99 price point.
