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.
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
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
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.
Elon Musk and SpaceX have set some ambitious dates for the first Mars landing. Musk envisions launching the Starship toward Mars by late 2026—less than two years away. There won’t be any humans on board in the initial launches. Instead, Optimus will fill in for humans. Musk stated that human landings could follow as early as 2029 to 2031.
There are certain windows that make flights to Mars feasible for humans. So SpaceX is aiming for humans to be a part of the second or third Earth/Mars launch windows from now, which are 5 to 7 years away.
Tesla continues advancing Optimus, and SpaceX remains relentless. Another Starship test launch is in the books, all while maintaining their steady weekly cadence of Dragon missions to space.
Starship departs for Mars at the end of next year, carrying Optimus.
Civilization On Earth
Musk goes on to state something interesting in another post on X. He says that the key will be whether “Earth’s civilizational technology level will last long enough to ensure Mars can grow by itself, even if supply ships from Earth stop coming.”
The statement suggests two possibilities—that Earth’s civilization collapses or fails to advance enough to solve unforeseen challenges of sustaining life on Mars.
The key concern is whether humanity will remain technologically and industrially capable long enough to ensure that Mars can eventually become self-sufficient. If Earth’s civilization weakens, either due to collapse, stagnation, or regression, Mars might not get the support it needs to reach full independence—leading to the colony’s failure.
Tossing Optimus on board Starship is a smart move, instead of having smaller, single-task robots. Optimus also has the advantage of being upgradeable on Mars as long as the hardware holds up. It could be a lot like what we saw with Tesla vehicles, where the hardware was present for many years before the vehicle was capable of driving on city streets. Optimus’ capabilities will also improve over time, even if the hardware is older.
But, how does Elon Musk envision Optimus’ role on Mars?
The answer might be simple. SpaceX can leverage a fleet of Optimus robots to assemble shelters and infrastructure before humans even arrive.
Optimus is already highly capable, with precise hands adept at manipulating tools and objects. On Mars, it could construct basic habitats, set up survival systems, and even handle ice processing, water recycling, and food production.
These facilities will be absolutely essential for the first humans to comfortably settle in and begin work on expanding, maintaining, and preparing for proper human settlement.
Beyond construction, Optimus has a major advantage—it doesn’t need oxygen. Instead, mission planners would only need to monitor battery levels, wear and tear, and any potential damage.
That said, even humanoid robots face risks. Martian dust has long been an obstacle in space exploration, clogging solar panels, damaging equipment, and causing malfunctions. Tesla will need to redesign Optimus to withstand the harsh conditions. Its joints and components will need to be sealed against Mars’ relentless environment.
Starship
Mechazilla catching Starship7 Rocket Booster for the first time ever! 🚀 Incredible Achievement by @spacex
Starship, the largest rocket ever built, is immensely capable—but still in its early testing phases. SpaceX has dedicated hundreds of hours between each flight test, refining and improving with every launch. With several Super Heavy booster catches now under their belt, the next challenge is proving Starship itself can land.
Once SpaceX can launch, complete a mission, and safely land both the booster and Starship, the dream of reaching Mars may no longer seem so far-fetched.
With that, Happy 23rd Anniversary, SpaceX! We’re with you all the way as you push humanity toward the stars.
Happy 23rd Anniversary to @SpaceX! Founded on March 14, 2002, and still pushing the limits of what’s possible, here’s to the next chapter of making life multi-planetary! pic.twitter.com/mzvrdEagAn
According to Chinese blog posts from earlier last week, now vetted by Reuters, Tesla intends to produce a cut-down version of the Model Y, initially for the Chinese market, sometime in 2026.
This follows the launch of Tesla’s cut-down Model 3 for Mexico, as well as news that Tesla intends to launch their new next-gen model sometime in the near future.
Cut Down, But How?
The new Model Y, internally referred to as Project E41, is designed to lower the entry price of Tesla’s popular SUV—one of the most compelling options on the market due to its size, range, and versatility, especially following the launch of the refreshed Model Y.
To achieve this, Tesla is reportedly aiming to reduce the Model Y’s total cost by nearly 20%, according to reports from China. While exact changes remain unknown, we can make informed guesses based on the cost-saving measures Tesla implemented in the scaled-down Model 3 for Mexico.
Textile Seats and Trim
One of the most noticeable changes in the cost-cut version of the Model 3 in Mexico was the removal of vegan leather throughout the interior. In its place, Tesla opted for a durable textile fabric for the seats, reducing material costs. Additionally, any Alcantara trim pieces were replaced with the same textile in various areas.
No Heated or Cooled Seats
Another major cost-cutting measure was the removal of heated and cooled seats, along with the heated steering wheel. While these feature reductions may seem minor, eliminating them reduces various things, such as electrical components, harnesses, and ductwork that are required for seat ventilation.
No Rear Screen
One of the more unexpected changes in the reduced-cost Model 3 was the removal of the rear screen, despite it being powered by the same front infotainment computer as the front display. Given that the screen functions primarily as an additional display rather than a standalone system, the cost to include it is extremely low. It’s one of those really smart additions Tesla has added that increases value for the consumer with minimal cost to Tesla.
Tesla is unlikely to redesign or modify the vehicle’s wiring harness for this change, meaning a rear screen could potentially be retrofitted later by the customer. Based on replacement part estimates, the screen likely costs Tesla between $5 and $20 per vehicle, which acts as a secondary monitor for the infotainment computer.
Ambient Lighting, Acoustic Glass, Speakers
The final set of changes also focuses on the interior. Tesla replaced the RGB-capable ambient lighting with a simpler white-only version—likely saving only a few dollars per vehicle. While this may seem like a minor and somewhat unexpected cut, it could serve as an upsell opportunity to the standard RWD variant.
Additionally, Tesla reduced the use of dual-pane acoustic glass, now limiting it to just the front windows and windshield. This change drastically cuts costs but also affects cabin noise levels. The dual-pane glass played a key role in making the refreshed Model Y noticeably quieter, so this downgrade will likely bring noise insulation closer to that of the original Model Y.
As for audio, Tesla scaled down the speaker system in the Mexican Model 3 from 17 speakers to just nine, while also removing the subwoofers and one of the audio amplifiers. While this cuts costs due to wiring and speakers, it also has a large impact on the audio quality in the vehicle.
Project E41 is Not the Next-Gen Model
It’s important to note that Project E41 is not the same as the upcoming, more affordable next-gen platform, which is internally referred to as Project Redwood. While Project E41 focuses on a reduced-cost version of the Model Y, Project Redwood is designed to test Tesla’s manufacturing capabilities, using their innovative unboxed assembly method to reduce both costs and production time. The goal is to create a vehicle that is smaller and more affordable, while also keeping it safe and capable of self-driving.
Tesla previously confirmed that they plan to unveil new models—distinct from cut-down versions of the Model 3 or Model Y—during their Q4 2024 Earnings Call. However, the executive team has been careful not to divulge too many details about the upcoming model during interviews. This suggests there may be a lot more that has yet to be unveiled.
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