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Tesla cuts price of Full Self-Driving software by a third to $8,000

Published 04/21/2024, 12:03 AM
Updated 04/21/2024, 11:00 AM
© Reuters. A Tesla Model 3 vehicle is shown using the Full Self Driving Beta software (FSD) while navigating a city road in Encinitas, California, U.S., February 28, 2023. REUTERS/Mike Blake/File Photo
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SAN FRANCISCO (Reuters) -Tesla on Saturday slashed the price of its Full Self-Driving (FSD) driver assistant software to $8,000 from $12,000 in the United States, as CEO Elon Musk reaffirms his commitment to self-driving technology.

Musk is betting the technology will become a major source of revenue for the world's most valuable automaker. But he has for years failed to achieve the goal of self-driving capability, with the technology under growing regulatory and legal scrutiny.

Earlier this month, Musk said Tesla (NASDAQ:TSLA) will unveil its robotaxis on Aug. 8, after Reuters reported Tesla had scrapped its inexpensive, mass-market car in favour of robotaxis.

Tesla subsequently cut the U.S. monthly subscription price for the feature from $199 to $99.

In 2023, Musk said that the price of FSD, then priced at $15,000, was very low, saying that the value of the car would increase dramatically if it became autonomous.

© Reuters. A Tesla Model 3 vehicle is shown using the Full Self Driving Beta software (FSD) while navigating a city road in Encinitas, California, U.S., February 28, 2023. REUTERS/Mike Blake/File Photo

Tesla calls its driver assistant features Autopilot or FSD but says they do not make its vehicles autonomous and they require active driver supervision.

Tesla has also been cutting prices on its auto line-up in major markets. Grappling with falling sales and an intensifying price war for electric vehicles, Tesla cut prices by nearly $2,000 across its lineup in China, mirroring price cuts in the United States.

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