Tesla’s Full Self-Driving software now costs $8,000 in the United States, marking a major price cut from its $15,000 peak last year. The company also slashed its monthly subscription rate in half to $99. These reductions come as Tesla’s sales have declined and inventory levels have reportedly grown high.
The pricing changes represent a $7,000 drop from 2023’s peak levels. Tesla also reduced upgrade costs for existing customers from $6,000 to $2,000. The company has become known for adjusting prices without advance warning, and once customers purchase FSD, they can’t get refunds.
Tesla slashed FSD prices by $7,000 from peak levels, with no refunds available after purchase.
International buyers are getting even better deals. Australian customers pay 10,100 AUD, which converts to about $6,594 USD. Middle East buyers pay $29,000 SAR, equivalent to $7,717 USD. Both regions pay less than American customers, showing Tesla’s strategy to enter new markets with lower introductory pricing.
Tesla’s offering different incentives based on which car buyers choose. Model S and Model X purchases include one free interior or exterior upgrade with FSD. Cybertruck and Model 3 buyers get 0% APR financing when they purchase FSD. This financing deal applies whether they’re buying FSD new or transferring it from an older vehicle. Model Y buyers don’t receive any current promotions.
The choice between buying or subscribing depends on how long drivers keep their cars. The break-even point happens around six years. If someone keeps their Tesla longer, buying saves money. The subscription lets people test the features without the big upfront cost, but they’ll pay monthly fees forever. Users can cancel the subscription anytime, providing flexibility for those with short-term ownership plans.
FSD works as a supervised driver assistance system. It can steer through city streets, recognize traffic lights, and handle complex routes. Tesla regularly updates the software with new features. The system improves through over-the-air updates and real-world data collection from drivers using the technology. However, it’s not the fully autonomous system the company originally promised.
Market watchers think Tesla might offer more promotions to move inventory, especially as the fourth quarter approaches. Some speculate the company could even offer FSD for free to enhance sales. Tesla hasn’t confirmed any timeline for such offers, but the company’s pricing strategies often depend on quarterly performance targets. Some dealers have created waitlist opportunities for customers with pending deliveries who want to secure discounted FSD pricing.