Tesla is preparing to launch a new Full Self-Driving monthly subscription based on an update to its mobile app and it is putting a deadline on the newly reintroduced Enhanced Autopilot package.
Later, CEO Elon Musk confirmed that Tesla planned to release such an option “toward the end of the year”.
With the FSD package’s price back into focus as Tesla reintroduced its Enhanced Autopilot package yesterday, we see evidence that the subscription launch might be imminent.
Redditor /u/Callump01 was able to do some reverse engineer in Tesla’s upgrade section of its mobile app to reveal the new ‘Subscribe” section:
While Tesla has had codes to prepare for a new subscription model for a while, this update closer to the end of the year could indicate that Tesla is preparing to soon release the new way to access its Full Self-Driving software.
When confirming plans to offer a monthly subscription to access the features, Musk made it clear that buying the FSD package will remain the best option financially:
“I should say, it will still make sense to buy FSD as an option as in our view, buying FSD is an investment in the future. And we are confident that it is an investment that will pay off to the consumer – to the benefit of the consumer. In my opinion, buying FSD option is something people will not regret doing.”
However, a monthly subscription might make more sense for people leasing their Tesla vehicles and those who don’t want to commit to paying $8,000.
As we reported yesterday, Tesla also reintroduced its Enhanced Autopilot package for $4,000 as an alternative to the Full Self-Driving package.
We noted that it was an opportunistic move at the end of the quarter and now Tesla has confirmed it in a new email to customers promoting the package and saying that they have until September 30th, which is the end of the quarter, to order it.
I think a subscription model makes sense for some people.
For Tesla, it also makes sense but at quite a high price. I wouldn’t be surprised if it will cost over $100 per month.
Though I also wouldn’t be surprised if Tesla ends up breaking up some features to let people subscribe to only a few, not unlike the Enhanced Autopilot, and not just the FSD package.
But I just thought about something. Is the subscription only going to be available to owners of Tesla vehicles who already have the Hardware 3.0 FSD computer?
The retrofit is not cheap, but it makes sense for Tesla to do it if it gets $8,000 for the FSD software package.
With a monthly subscription, Tesla will have a big upfront cost to recoup.
What do you think? Let us know in the comment section below.