Tesla has reduced the price of its Full Self-Driving (FSD) software, dropping it from $12,000 to $8,000 for customers in the United States and from CA$16,000 to CA$11,000 in Canada. This move follows the recent 50% reduction in the subscription price announced on April 12.
Enhanced Autopilot Changes
The cost to upgrade from Enhanced Autopilot (EAP) to FSD has also been cut and is now a $2,000 upgrade for U.S. customers and CA$2,750 in Canada. EAP has also been removed as an option completely from Tesla’s site. Customers’ only option to get more advanced driver assist features in the U.S. and Canada is to now buy FSD.
In 2016, Enhanced Autopilot started at $5,000 while FSD was an extra $3,000. At the time, Enhanced Autopilot included features including Autosteer, Summon, and AutoPark, while more recently it also added Auto Lane Change and Navigate on Autopilot, which has the vehicle change lanes for you to remain on route to your destination.
Earlier this month, Tesla implemented a 50% price reduction for FSD subscriptions in the U.S. and introduced the subscription model in Canada at a great value of CA$99 per month.
FSD Price History
In April 2019, Basic Autopilot was added to every Tesla vehicle, which included Autosteer and Tesla restructured their Enhanced Autopilot and FSD offerings. The price of FSD slowly climbed from $5,000 USD in 2019 to a high of $15,000 USD in September 2022 before trending downward.
Date
FSD Cost
April 2019
$5,000
May 2019
$6,000
August 2019
$7,000
July 2020
$8,000
October 2020
$10,000
January 2022
$12,000
September 2022
$15,000
September 2023
$12,000
April 2024
$8,000
Subscribe or Buy?
With the previous pricing of $12,000 in the United States, Tesla customers who subscribed to FSD for $99 a month would need more than 10 years to reach the purchase price. With the updated price of $8,000, that drops to about 6 and a half years. It’s worth noting that the average length of car ownership in the U.S. is about 8 years.
This decision follows Elon Musk’s recent initiative to offer FSD demonstrations to all customers in North America upon vehicle delivery. In a recent communication, the Tesla CEO emphasized the importance of FSD, stating that it had become mandatory in North America to conduct a brief FSD test ride with customers before handing over the vehicle.
In the same email, Musk added that “almost no one actually realizes how well (supervised) FSD actually works” while recognizing that the measure could “slow down the delivery process”.
Price Cuts
On Saturday, Tesla also cut prices by nearly $2,000 on the Model S, Model X, and Model Y in the U.S. The Model Y now starts at $42,990 before government incentives. Tesla has also begun reducing finance rates in various markets, which could make their way to North America in the near future.
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In just 8 months, Tesla has gone from breaking ground to delivering electrons at its most ambitious Supercharger project to date, just in time to be ready for the busy Fourth of July holiday weekend. Project Oasis, the world’s largest Supercharger site, is now partially open to customers for its first phase in Lost Hills, California.
What makes this remarkable is the speed of execution. In just eight months, Tesla has constructed a site that will eventually feature 168 stalls (84 stalls are now open), supported by 11 MW of solar power and 10 Megapacks of battery storage. That construction speed is pretty impressive, but what is even more impressive is how this new station operates and what it means for future Supercharging infrastructure.
Self-Sufficient Energy Oasis
Not a Tesla App
The first 84 stalls at Lost Hills are now open, and according to the Tesla Charging team, they are currently powered solely by the sun and operate off-grid.
This makes it more than just a new Supercharger site. It serves as a proof of concept for a new type of Supercharger. Unlike nearly every other charging site in the world, which draws power from local utilities, this station generates its own clean electricity from its massive solar array and stores it in its array of on-site Megapacks.
Self-sufficient charging stations are something completely different than what we see today. They are highly resilient since they’re not reliant on the grid. That means that even if there is a local power outage, brownout, or blackout, one can always come to Lost Hills to Supercharge.
If you’ve got a Cybertruck, you could take advantage of the Cybertruck’s Powershare feature and charge up at Lost Hills to help keep your home powered during a blackout, utilizing the Cybertruck as a portable battery charger. Now that’s true independence and self-reliance.
The Future of Charging
Solar-powered Superchargers help avoid massive new loads on already stressed electrical grids, especially during peak afternoon and evening hours, when demand is the highest.
This is Tesla’s vision for the future of charging: a clean, fully closed-loop ecosystem that sustains itself. The sun’s energy is captured, stored, and delivered directly to vehicles on site at any time of day without relying on the electrical grid or fossil fuels.
Largest Supercharger in the World
This opening of 84 stalls is just the first phase of the project. Tesla says that the remaining stalls, as well as a new on-site lounge, are coming later this year. Once complete, the 168-stall site will be the largest Supercharger site in the world.
While the speed of building such a massive project in just eight months is a testament to Tesla’s execution, the true innovation is actually that self-sustainability. Let’s hope we see even more large, self-sufficient Supercharger sites across the world in the near future.
Elon Musk is once again seeking to expand Tesla’s vertical integration in the energy sector, this time focusing squarely on solar power. Following discussions on X that highlighted the massive gap in solar deployments between the US and China, Elon is now discussing the need for a Tesla Solar Gigafactory in the United States.
This potential move is driven by a specific catalyst: the exponential growth of AI is creating an insatiable demand for electricity. For Tesla and xAI, two of Elon’s companies betting their future on AI, building the power generation required is a strategic necessity.
A new factory wouldn’t just be about making panels; it would be about manufacturing the final missing piece in Tesla’s vertically integrated energy ecosystem.
Maybe there should be a solar Gigafactory in America
The context for this renewed focus is pretty stark. In May, China reportedly added a staggering 93 gigawatts (GW) of solar power capacity. In contrast, the United States installed approximately 14 GW over the entire first quarter, roughly 20 times less than China.
The primary driver of this demand is the revolution in AI. Training ever-larger and smarter AI models involves operating vast data centers, which consume staggering amounts of power. Google, Amazon, and Microsoft have turned to small-scale nuclear reactors, with Microsoft petitioning to reopen the infamous Three Mile Island for its AI operations.
For Elon’s companies, whose future products like FSD, Optimus, and Grok are built on a foundation of real-world AI, securing a massive and sustainable energy supply isn’t a side quest. It is part of the main mission, especially in conjunction with grid-scale storage, such as Megapacks and Powerwalls. You can’t power a world of autonomous robots without a world of abundant, clean energy.
The Tesla Ecosystem
A US solar gigafactory would be the final, logical step in completing Tesla’s energy hardware ecosystem. While Tesla already manufactures some solar panels and the Tesla solar roof, the scale is too minuscule to matter.
By mass-producing its own panels, while also increasing Solar Roof production, Tesla would become a true one-stop shop for all things green energy. This would allow the company to supply its own large-scale projects, like the massive solar array for Project Oasis - the world’s largest Supercharger site.
It would also enable more complete residential packages, like the Giga-Small Haus concept home, combining Tesla-made panels and roofs with a Powerwall 3. This level of vertical integration would give Tesla complete control over the technology, cost, and supply of every major component in its energy ecosystem, from generation to storage to mobility.
Building a new Solar Gigafactory is about much more than just simply producing solar panels. It’s a requirement to power Tesla’s future products and make solar panels accessible to everyone.
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