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Tesla drops Full Self-Driving package down to $8K from $12K

Tesla cuts price of Full Self-Driving software by a third, making it more affordable for drivers. Price cuts also apply to Model Y, X, and S vehicles.

Interior view of a car with hands-free driving on the highway, displaying a large central touchscreen with navigation map and vehicle status.

Tesla owners and prospective buyers: There’s never been a better time to buy the company’s Full Self-Driving feature. Trust me—just take it from the guy who spent $12,000 on this feature just a few months ago. 

The electric vehicle giant announced that it would be cutting the price of its Full Self-Driving (FSD) software by a third, from $12,000 to $8,000. Tesla has reduced prices to encourage more people to use its advanced driver assistance system.

Despite the price cut, some (Okay, most) analysts and observers remain skeptical of Tesla’s approach to autonomous driving.

Elon Musk’s promises to have fully autonomous vehicles on the roads by 2020 have not materialized, and the company has faced scrutiny over the safety and reliability of its Autopilot and FSD features.

The latest price reduction comes as Tesla faces challenges in sales and inventory levels. By making FSD more affordable, Tesla aims to increase the use of its advanced driver assistance technology, which in turn will boost demand for this technology.

But wait, there’s more!

White electric SUV driving on bridge.
Image: KnowTechie

The company announced that it would be cutting the prices of its Model Y, Model X, and Model S vehicles by $2,000, each, in the United States.

The cuts range from $2,000 for the base Model Y to $7,700 for the top-of-the-line Model S, making Tesla’s vehicles more affordable for a wider range of buyers.

Tesla’s recent price reduction follows a pattern of sharp price cuts over the past few years. In 2023, the company reduced the price of its Model 3 by up to $10,000, and in 2022 it slashed the price of its Model S and Model X by up to $20,000.

These aggressive price reductions have made Tesla’s vehicles more competitive, but they have also raised questions about the company’s profit margins and long-term financial viability.

What is Tesla’s Full Self-Driving package?

tesla full self-driving
Image: Tesla

Tesla’s Full Self-Driving software includes features like lane keeping and adaptive cruise control, which can make long drives on the highways much easier.

However, the technology is still considered experimental, and Tesla emphasizes that drivers must always keep their hands on the steering wheel.

The price cut for FSD could make Tesla’s technology more accessible to a wider range of drivers. However, the success of this strategy will depend on whether Tesla can deliver a reliable and safe self-driving experience.

Given the company’s track record and some skepticism, Tesla faces a challenging path to widespread adoption of full self-driving capabilities.

If this means anything, I’ve been using Tesla’s Full Self-Driving option for almost four years now, and I have to say, it’s truly a gift to have. It’s one of the many reasons I ended up buying another Tesla.

Honestly, I can’t see myself going back to a regular car again.

And what’s wild is that it keeps improving as they release new updates. Sure, when I first got it, the feature wasn’t perfect, but hey, that’s the cost of innovation. Imagine if the Wright Brothers hung it all up after their first flight.

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Kevin is KnowTechie's founder and executive editor. With over 15 years of blogging experience in the tech industry, Kevin has transformed what was once a passion project into a full-blown tech news publication. Shoot him an email at kevin@knowtechie.com or find him on Mastodon or Post.

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