Tesla to raise price of Full Self-Driving to $15,000

Tesla to increase the price of FSD

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Tesla started its rollout of the next big release of FSD Beta on August 20th. And alongside its many improvements, Elon Musk announced that Tesla will be raising the price of FSD to $15,000 - a 20% increase. The price increase will go into effect in North America on September 5, 2022 "after a wide release of FSD Beta 10.69.2."

“Current price will be honored for orders made before Sept 5th, but delivered later,” Musk adds.

After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5th.

Current price will be honored for orders made before Sept 5th, but delivered later.

— Elon Musk (@elonmusk) August 21, 2022

Musk followed up with a tweet that added how easy it was to upgrade your existing vehicle to FSD via the Tesla mobile application.

“Note, you can upgrade your existing car to FSD in 2 mins via the Tesla app,” Musk writes.

FSD Beta’s sudden and large increases in price over the last year has drawn criticism from the Tesla community. After more than 100,000 Tesla owners were added to the FSD Beta program, the software has gotten a lot of hands-on experience from owners who are having some doubts about its hefty price tag.

Tesla owner and YouTuber James Locke (@arctechinc) shared an echoed recommendation via Twitter to Musk. He asked that the license for Tesla be looked into since FSD is in development and is not a finished product yet. He suggested that a “commercial license” be used when owners place their vehicles into the robo-taxi fleet.

“.@elonmusk I humbly recommend it’s time to rethink the way the FSD license works,” Locke writes. "While FSD is still in development and not a finished product you should have a personal use and commercial use license. Personal use should be much cheaper to allow for maximum safety /1."

“When the robo-taxi fleet is a reality you could offer an upgrade to buy into the commercial license which is more expensive and offers higher profits for putting the car into the fleet. Or owners could let Tesla take a great [chunk] of the robo-taxi profit for personal license.”

.@elonmusk I humbly recommend it's time to rethink the way the FSD license works. While FSD is still in development and not a finished product you should have a personal use and commercial use license. Personal use should be much cheaper to allow for maximum safety /1

— James Locke (@arctechinc) August 21, 2022

Locke adds that everyone who purchases a Tesla should have FSD included with their purchase because its features are tantamount to the vehicle’s safety.

“IMHO @elonmusk everyone who buys a Tesla should get FSD included for personal use to ensure the safest cars on the road are affordable to everyone.”

IMHO @elonmusk everyone who buys a Tesla should get FSD included for personal use to ensure the safest cars on the road are affordable to everyone.

If someone wants to put their Tesla into a money making robo-taxi fleet, that's when the cost for a license should be higher. /end

— James Locke (@arctechinc) August 21, 2022

In January of 2022, Tesla raised the price of Full Self-Driving from $10,000 to $12,000. At the time, many were discussing FSD’s price and stating that $10,000 was too much for the software in its current state.

Last year, Tesla launched its Full Self-Driving subscription. Owners could pay $99 per month or $199/month for the FSD subscription, depending on whether their vehicle already has Enhanced Autopilot.

At the time Tesla's FSD package cost $10,000 and you'd have to subscribe for more than four years (at $199) before it made sense to buy the FSD package.

However, with the upcoming price increase, you'd now need to subscribe for more than six years before buying the package outright was the better deal.

There's no word whether Tesla will also increase the monthly subscription, which is starting to look like a better deal for new owners.

A monthly subscription certainly has a lot more flexibility as you can cancel or renew whenever you'd like without any penalties.

It's certainly possible that Tesla is trying to shift users toward a subscription model.

Tesla's FSD monthly subscription has remained the same price since its introduction.

As Full self-driving becomes better with each update and Tesla gains more data, we can anticipate the price of FSD to continue to go up. With the continuous sudden and large price increases, it’s becoming more difficult to justify such a large price tag.

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A Look at the Tesla Cybertruck’s Crumple Zones [VIDEO]

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Tesla’s Cybertruck has officially earned a 5-Star Safety Rating from the NHTSA—an impressive achievement given the vehicle’s design. The achievement demonstrates Tesla’s engineering prowess. As one engineer points out, it wasn’t an easy feat.

Interestingly, the NHTSA only recently disclosed the results, despite the crash tests being completed a while ago. According to Lars Moravy, Tesla’s VP of Vehicle Engineering, the team had been aware of the 5-star rating for quite some time. While the reason for the delay remains unclear, now that the results are public, Tesla’s engineers can finally share how they achieved the rating.

Crumple Zones

Wes Morril, the Cybertruck’s Lead Engineer, wrote about the crash test video on X recently, addressing the claims that the Cybertruck doesn’t have a crumple zone. He also posted a side-by-side video (below) of the engineering analysis and the crash test itself.

Engineered Crash Safety

There’s a lot of engineering precision at play when a Cybertruck is involved in a crash. Unlike traditional crash structures that rely on crash cans and collapse points, the Cybertruck’s front gigacasting is designed to absorb and redirect impact forces in a highly controlled manner.

It all starts with the bumper beam, which crushes within the first few milliseconds of a high-speed impact. At the same time, the vehicle’s sensors rapidly analyze the crash dynamics and determine the optimal deployment of safety restraints, including airbags and seat belt pre-tensioners. These split-second actions are crucial in keeping occupants safe.

As the crash progresses, the vehicle’s structure deforms in a carefully engineered sequence. The drive unit cradle bends, directing the solid drive unit downward and out of the way, allowing the gigacasting to begin absorbing impact forces.

The casting crushes cell by cell, methodically dissipating energy in a controlled manner. This gradual deceleration reduces the g-forces transferred to occupants, making the crash much less severe. As the gigacast begins crushing, the safety restraints are deployed.

As Wes points out in his post - you can see how accurate the virtual analysis and modeling were. The video shows the simulated crash side by side with the real-life crash test and they’re almost identical. All that virtual testing helps provide feedback into the loop to design a better and safer system - one that is uniquely different than any other vehicle on the road.

All the armchair experts claimed the Cybertruck has no crumple zone and I get it, the proportions seem impossible. It was a tough one and there is a lot of engineering that went into it. Let me break it down for you:

Here you can see the large single piece casting in action in a… https://t.co/Jk4X5erTcm pic.twitter.com/24Nmb1bmU5

— Wes (@wmorrill3) February 20, 2025

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Tesla Eliminates Front Casting on New Model Y; Improves Rear Casting

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Tesla has pioneered the use of single-piece castings for the front and rear sections of their vehicles, thanks to its innovative Gigapress process. Many automakers are now following suit, as this approach allows the crash structure to be integrated directly into the casting.

This makes the castings not only safer but also easier to manufacture in a single step, reducing costs and improving repairability. For example, replacing the entire rear frame of a Cybertruck is estimated to cost under $10,000 USD, with most of the expense coming from labor, according to estimates shared on X after high-speed rear collisions.

These insights come from Sandy Munro’s interview (posted below) with Lars Moravy, Tesla’s VP of Vehicle Engineering, highlighting how these advancements contribute to the improvements in Tesla’s latest vehicles, including the New Model Y.

However, with the new Model Y, Tesla has decided to go a different route and eliminated the front gigacast.

No Front Casting

Tesla’s factories aren’t equipped to produce both front and rear castings for the Model Y. Only Giga Texas and Giga Berlin used structural battery packs, but these were quickly phased out due to the underwhelming performance of the first-generation 4680 battery.

Tesla has gone back to building a common body across the globe, increasing part interchangeability and reducing supply chain complexity across the four factories that produce the Model Y. They’ve instead improved and reduced the number of unique parts up front to help simplify assembly and repair.

There is still potential for Tesla to switch back to using a front and rear casting - especially with their innovative unboxed assembly method. However, that will also require Tesla to begin using a structural battery pack again, which could potentially happen in the future with new battery technology.

Rear Casting Improvements

The rear casting has been completely redesigned, shedding 7 kg (15.4 lbs) and cutting machining time in half. Originally weighing around 67 kg (147 lbs), the new casting is now approximately 60 kg (132 lbs).

This 15% weight reduction improves both vehicle dynamics and range while also increasing the rear structure’s stiffness, reducing body flex during maneuvers.

Tesla leveraged its in-house fluid dynamics software to optimize the design, resulting in castings that resemble organic structures in some areas and flowing river patterns in others. Additionally, manufacturing efficiency has dramatically improved—the casting process, which originally took 180 seconds per part, has been reduced to just 75 seconds, a nearly 60% time reduction per unit.

Advancements in die-casting machines and cooling systems have allowed @Tesla to dramatically reduce cycle times and improve dimensional stability. pic.twitter.com/WB5ji67rvV

— Munro Live (@live_munro) March 11, 2025

New Casting Methods

Tesla’s new casting method incorporates conformal cooling, which cools the die directly within the gigapress. Tesla has been refining the die-casting machines and collaborating with manufacturers to improve the gigapress process.

In 2023, Tesla patented a thermal control unit for the casting process. This system uses real-time temperature analysis and precise mixing of metal streams to optimize casting quality. SETI Park, which covers Tesla’s manufacturing patents on X, offers a great series for those interested in learning more.

The new system allows Tesla to control the flow of cooling liquid, precisely directing water to different parts of the die, cooling them at varying rates. This enables faster material flow and quicker cooling, improving both dimensional stability and the speed of removing the part from the press for the next stage.

With these new process improvements, Tesla now rolls out a new Model Y at Giga Berlin, Giga Texas, and Fremont every 43 seconds—an astounding achievement in auto manufacturing. Meanwhile, Giga Shanghai operates two Model Y lines, delivering a completed vehicle every 35 seconds.

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