Tesla Slashes Price of Full Self-Driving Software

Tesla is making a big push for its Full Self-Driving (FSD) software reducing the price from $12,000 to $8,000 in the United States.

This move comes as CEO Elon Musk remains confident in self-driving technology, despite ongoing regulatory hurdles and questions about its capabilities.

According to a Reuters report on Sunday, Musk views self-driving as a key revenue stream for Tesla, aiming to turn it into a "cash cow" for the company. 

However, Tesla has yet to achieve full self-driving functionality, and the technology is under increasing scrutiny from regulators and legal experts.

This price cut follows on the heels of another announcement from Musk - the unveiling of Tesla's robotaxis on August 8th.

This news came after Reuters reported Tesla had abandoned plans for a low-cost, mass-market electric vehicle in favour of focusing on robotaxis.

Tesla is now offering FSD for a one-time purchase of $8,000 or as a monthly subscription service for $99.

This represents a significant reduction from the previous $199 monthly subscription price. Tesla recently offered all its customers a complimentary month of FSD use, further incentivizing adoption.

The price reduction for FSD software is part of a broader trend at Tesla. The company has also cut prices on its vehicle lineup in major markets like China, facing both declining sales and heating-up competition in the electric vehicle space.