The price of Tesla’s Full-Self Driving package has, as promised, increased to $8,000. The choice to pre-sell a “Full Self-Driving” package prior to making the technology available through software may have saved Tesla’s second quarter. The move is quite controversial and has been criticized for numerous reasons.
Tesla is not innocent when it comes to confusing some customers as far as their wavering package prices, even without delivering the features promised. However, CEO Elon Musk has made Tesla’s pricing blueprint more transparent as far as the Full Self-Driving package. Musk warned that the price increase will not stop there. The CEO plans to continue increasing the price in the future saying “The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval. It that point, the value of FSD is probably somewhere in excess of $100,000.”
As The Next Avenue reported this week, Musk stated that it would be possible for Tesla to break even in Q2, even with the current global pandemic. The upcoming price increase almost certainly took part in an increased take rate potentially earning Tesla hundreds of millions of dollars, rescuing it from a very difficult quarter. This won’t be confirmed however until Tesla’s next earnings are released. Should Tesla deliver on the promises it’s making, it could see its revenue skyrocket even more.
It is no secret that Tesla was planning to increase the price of the Full Self-Driving package by $1000 at the end of the quarter. Just as Musk indicated, Tesla’s “FSD” package is officially priced at $8000.