Following Tesla CEO Elon Musk's recent tweet, the electric automaker officially increased the price of its Full Self-Driving Beta package to $12,000. It was previously $10,000 for the package, which some folks paid even less for in the past. It was priced at $8,000 when Tesla first started running its controversial beta testing program.


Musk made it clear once again that Tesla will continue increasing the price of FSD, and it will make its cars appreciate in value going forward. This is because the technology isn't transferable. If you own a car with FSD and sell it, the new owner gets it. Proceeding to buy a new Tesla would require paying for FSD all over again. However, there is another option.


Tesla also offers a Full Self-Driving capability subscription. And, before moving forward, now would be as good a time as any to make it clear that, despite its name, Tesla's Full Self-Driving system can't actually drive the cars on its own. It requires close and constant human supervision at this point, though the automaker says it's improving the tech incrementally.

Tesla's FSD subscription is priced in two tiers. Owners with Tesla's Enhanced Autopilot will pay just $99 per month to upgrade to FSD. However, if your car only has Basic Autopilot, the monthly cost increases to $199. While buying the package in full may be a better overall value proposition, the subscription will likely appeal to more prospective owners going forward. This is especially true for Tesla owners how may not plan to keep the same car for many years. 

There are many Tesla owners who believe the subscription is too pricey, and Musk has said that the subscription price will increase as updates happen and new features are added. However, the subscription will eventually give people a chance to check out FSD, subscribe to it when they need or want it, and not have to worry about selling a car they paid an extra $12,000 for, only to lose the valuable feature. You can simply add the subscription and cancel freely at any time.

If we had to guess, we'd assume Tesla will try to move more toward a subscription-based situation in the future. However, at this point, many people who paid for FSD still don't have access to the beta software. So, paying monthly for the subscription at this point may not really make much sense. You'd have to add the subscription and then hope you eventually get beta access.

Interestingly, Musk has said in the past that it's "debatable" whether the FSD subscription is actually worth the money in the current circumstances, and that people opting to subscribe are really paying for the future. He went on to say that Tesla has to make it work and then roll it out widely before the value proposition of the subscription will become much more clear.

This topic definitely deserves plenty of conversation. Do you think the subscription is worth the money in the present? Will it make more sense in the future? How do you think the continued FSD package price increases will impact the take rate? Share your wisdom in the comment section below.

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