Tesla to Hike Price of Driver Assistance Software by 25% Come September

Elon Musk is raising the price of Tesla’s (NASDAQ: TSLA) premium driver assistance system once again, as the automaker makes gradual upgrades to the software technology.

Musk on Sunday tweeted that Tesla’s Full Self-Driving system will increase from an upfront cost of $12,000 to $15,000 come September 5 for its North American customers. However, he added that vehicle orders placed before the date will have the previous price honoured. With the latest price increase, Tesla drivers are now going to be paying five times as much for the FSD software compared to when it was first unveiled as an add-on with a price tag of $3,000.

The Tesla CEO has periodically alluded that the “full self-driving” feature would incrementally increase in price as the EV maker advances the underlying technology and moves closer to receiving approval from regulators. The current FSD technology allows the vehicle to steer, accelerate, and brake on local roads, but a driver is still required to remain attentive behind the wheel. Although such features have come under scrutiny following a series of high profile crashes, Tesla plans to continue moving forward with the technology.

Musk also on Sunday tweeted that Tesla will do a limited release of the newest FSD Beta to a select group of drivers. “There are many major code changes, so this will be an extra cautious rollout. Releasing on 8/20 to ~1000 Tesla owners, then 10.69.1 next week to accommodate feedback & release to ~10k customers, then 10.69.2 week after & release to rest of FSD Beta,” he wrote.

However, the release has already come under scrutiny by FSD users, which Musk hasn’t appeared to handle well at all.

Information for this briefing was found via Twitter. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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