The cost of Tesla's Full Self Driving has increased since it was revamped in 2019. Those lucky enough to buy FSD in April 2019 got it for the price of $5,000. Since then the price has risen as high as $15,000 only to be lowered later.
Elon Musk warned consumers through X/Twitter that FSD would be more expensive. On August 21 2022, he tweeted: After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5. Current price will be honored for orders made before September 5 but delivered later.
Tesla reorganized its Autopilot and FSD packages three years ago; basic Autopilot was introduced and became standard on every vehicle, while FSD was priced at $5,000. Enhanced Autopilot was removed as an option at the time, but was later reintroduced as a $6,000 option in June of 2022.
Before 2019 FSD was an add-on that required also buying Enhanced Autopilot. Enhanced Autopilot cost $5,000 and FSD was a $3,000 option on top of that if ordered with the vehicle. If you ordered FSD after taking delivery then it cost $4,000, which later went up to $5,000.
It can only be assumed that there were a lot of buyers for FSD when Tesla rearranged their offerings in 2019, as the price for FSD went up the following month and has been on the rise since.
In fact, Tesla raised the price again three months after the first release, and eighteen months later, it had doubled to $10,000. 2022 started with another jump to $12,000 in January, and nine months later, the price went up again.
However, it looks like the buy-rate may have dipped as Tesla started dropping the price of FSD in September 2023.
Historical FSD Prices
Historical prices of Tesla's Full Self-Driving add-on since the revamp in 2019.
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
Tesla's CEO has made no qualms about the value of the program. At a shareholders' meeting in August, he said Tesla's engineers are producing breakthroughs in artificial intelligence. "We're solving a very important part of AI and one that can ultimately save millions of lives. And prevent 10 of millions of serious injuries by driving just an order of magnitude safer than people," said Musk. Since its inception and to this day, Musk believes that Teslas will be fully autonomous. He sees a future where your car would drive you to work, then operate as a ride share until you need to go home.
While Musk said the price would increase to $15,000 in North America, it skyrocketed to $19,500 in Canada, more than a 50% boost from what it cost in August. Although there is a monthly subscription offered in the U.S., there currently isn't one offered north of the border.
Although the price of FSD has continued to climb since Tesla revamped their FSD pricing structure in 2019, we witnessed Tesla's first price drop in the driver assist feature in September 2023. On the first of September, Tesla lowered the price of FSD by 20% in the U.S., down to $12,000. This brought FSD back to the price it was back at the start of 2022. However, in April 2024, Tesla once again lowered the price of FSD to $8,000, making it much more affordable, although the trend is unlikely to continue. Tesla may be testing the waters to find the optimal price. It'll be interesting to see where Tesla goes from here.
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There has been extensive reporting on what the long-anticipated affordable EV option would become, and we’ve seen numerous news stories mentioning that it was delayed or even arriving on time. The executive team revealed the near-term and long-term plans for Tesla’s upcoming vehicles, and there’s definitely good news to share here.
Updated Timeline
The most important piece of news is that despite all the talk of delays from supposed inside sources, Tesla has confirmed that the plan for its more affordable model remains on schedule for production to begin in the first half of 2025. Tesla’s executive team narrowed that timeline down further - and said that they expect production to kick off as soon as June and that the new model will be in the market shortly thereafter.
While the production timeline itself is on track, Tesla did note that the subsequent ramping process will likely be slower than initially hoped, citing global tariff and financial impacts as challenges to overcome to prepare its production lines.
Hybrid Production Approach
Tesla has once again confirmed that this will not be their next-generation vehicle, built using new production methods. Instead, they outlined a relatively more pragmatic approach for this new model.
Tesla will utilize aspects of both the next-generation platform as well as some parts of its current platforms (namely the Model 3 and Model Y). This means that Tesla will produce this new vehicle on the same manufacturing lines as the Model 3 and Model Y.
This strategy allows Tesla to bring the vehicle to the market more quickly, while also managing capital expenditures more efficiently by using existing infrastructure. However, Tesla’s executive team also noted that this approach, while faster, will result in fewer cost reductions than what might have been achieved with an entirely new platform and dedicated manufacturing process.
Vehicle Design
Using these existing production lines means that Tesla’s new vehicle will likely share some considerable similarities with either the existing Model 3 or Model Y. Rather than being a radically different and smaller vehicle, this new model will resemble the overall form factor and shape of Tesla’s current core offerings, while being optimized for a lower cost.
This doesn’t mean that Tesla is forgetting the overall goal here. Their ultimate goal is to reduce the initial cost of ownership and lower monthly payments for customers while maintaining a standard of excellence and safety.
Not Unboxed
Both at this Earnings Call and previous ones, Tesla has indicated that this new vehicle will not be using the innovative unboxed assembly method, at least for the time being. That relatively unique method will be developed and implemented specifically for the purpose-built Cybercab and for future vehicles on the next-generation platform.
We’re just a few days away from May, so it won’t be long before we see more about this upcoming vehicle. Stay tuned.
In a follow-up move to the current US administration’s goals to introduce a federal framework for autonomous vehicles, the US Department of Transportation (USDOT) is loosening autonomy restrictions following an announcement from Secretary Sean Duffy on X. This new initiative helps streamline complex regulatory processes and foster home-grown innovation.
From the Wright Brothers to the first astronauts on the moon, our nation has always been at the forefront of transportation technology.
That’s why today we're unveiling a new Automated Vehicle Framework from @USDOT’s Innovation Agenda ⬇️ ⬇️ pic.twitter.com/W3kbMUwQSn
As part of the broader upcoming USDOT Innovation Agenda, the newly unveiled AV Framework is designed to promote American innovation and strengthen domestic engineering while maintaining existing safety standards. The framework centers around three key principles:
Prioritize Safety
Unleash Innovation
Enable Commercial Deployment
To kickstart this AV framework, USDOT announced two initial steps focused on streamlining processes and expanding opportunities.
Crash Reporting Requirements
Under the first principle to Prioritize Safety, the National Highway Traffic and Safety Administration (NHTSA) will maintain its Standing General Order requiring crash reporting on Advanced and Automated Driver Assistance Systems (ADAS and ADS).
However, the reporting process will be streamlined following feedback from AV innovators, likely including Tesla. The goal here is to focus on collecting critical safety information while removing unnecessary or duplicative items from the reporting process, thereby reducing the burden without compromising safety.
Cutting Red Tape
Directly tied to the second principle of Unleash Innovation, the framework also seeks to slash red tape. The first step here is the expansion of the Automated Vehicle Exemption Program, or AVEP. This program allows manufacturers to petition for temporary exemptions from certain federal motor vehicle safety standards (FMVSS) for testing or deployment purposes.
Previously, the standard excluded domestically produced vehicles. Now, domestically produced AVs will not need to meet FMVSS, which will broaden the scope for manufacturers to test more innovative and unique designs and technologies.
Single National Standard for AVs
Finally, tied to the third principle of Enable Commerical Development, USDOT intends to move the United States closer to a single national standard for autonomous vehicles. This aims to prevent a confusing and inefficient patchwork of state-level or city-level laws and regulations, which can create hurdles for companies attempting to innovate, deploy, and scale their technology.
A unified standard across the United States also means that Canada and Mexico will likely be able to follow, as they share homologization standards across North America, including for vehicle crash safety and some autonomy regulations.
What This Means for Tesla
These framework changes will likely have a substantial impact on Tesla. The move towards a national standard is potentially the most impactful change, as Tesla identified regulatory hurdles as one of the most significant challenges it will face with the deployment of both Unsupervised FSD and its Robotaxi network.
The reduction of FMVSS requirements and streamlined reporting will likely play a role in the future as well. The FMVSS requirements are probably already being worked on, if not already met, by the Cybercab and other vehicles in Tesla’s lineup.
Meanwhile, the streamlined reporting will be helpful once Tesla officially launches its Robotaxi network in June.
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