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Tesla Full Self-Driving monthly subscriptions poised for 2021 launch

An autonomous Tesla Model 3 in action. (Credit: Tesla)

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Tesla is planning on launching monthly subscriptions to Full Self-Driving by 2021, announced Elon Musk in a recent tweet. He broke the news after setting an updated timeframe for FSD beta’s ~$2,000 price increase on Thursday, October 29.

A subscription service would make FSD more affordable to Tesla owners because drivers could opt to use the service only when necessary. From a consumer’s perspective, FSD might be worth buying if it’s bound to be used often. However, a subscription service might be more practical for drivers who won’t use Tesla’s Full Self-Driving suite daily and only need it during long drives or trips.

An FSD subscription service would not only benefit customers though. It would also benefit Tesla, specifically its AI team. The more data and driving experience FSD’s AI gathers, after all, the better it will perform.

With this in mind, making FSD as accessible as possible to Tesla owners should be a key priority for the company. Elon Musk predicted that FSD could be worth more than $100,000 one day. To reach that price point, Tesla’s Full Self-Driving capabilities would need to improve dramatically. More real-world driving data means that more improvements could be made.

Tesla’s subscription service has been in the works for some time. EV enthusiast @greentheonly spotted the first signs of a possible FSD subscription service drop while sifting through Tesla’s code in April earlier this year.

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“[T]here’s code for pay as you go subscription plan, has been for quite a while. Waiting for that eventual time when it will make sense I am sure,” green tweeted then.

Two days after the owner-hacker talked about the code for Tesla’s FSD subscription plan, Elon Musk and Zachary Kirkhorn confirmed the news during TSLA’s Q1 2020 earnings call. “I think we will offer Full Self-Driving as a subscription service, but it will be probably toward the end of this year,” answered Elon Musk noted.

Musk added that buying Tesla’s Full Self-Driving suite at full price might be a better investment. “I should say, it will still make sense as — to buy FSD as an option as, in our view, buying FSD is an investment in the future. And we are confident that it is an investment that will pay off to the consumer — to the benefit of the consumer. In my opinion, buying FSD option is something people will not regret doing,” he said.”

However, Musk was not wrong about perceiving FSD as an investment. In July 2020, a few months after the Q1 earnings call, Tesla raised the price of FSD from $7000 to $8000. After the FSD price increase, Musk reminded the public that Tesla’s Full Self-Driving software would increase in value every few months. “Those who buy it earlier will see the benefit,” he noted.

Musk held true to his word. Tesla recently released its limited Full Self-Driving beta, which is expected to feature improvements from the highly-anticipated Autopilot rewrite. Based on recent real-world tests of Tesla’s improved FSD suite, the EV automaker has made leaps and bounds in the development of its self-driving driving software.

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Corresponding to Tesla’s FSD beta was another price increase, merely months after the $1,000 raise in July 2020. Yesterday, Elon Musk announced Tesla would increase the price of FSD by ~$2,000, bringing it up to $10,000. Given the dramatic changes seen in Tesla’s limited FSD beta, the price increase makes sense to some.

However, it does also makes FSD less affordable to others. A subscription service for FSD would make Tesla’s autonomous software more accessible to those who aren’t willing to or can’t shell out $10,000 or more upfront.

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla CEO Elon Musk outlines expectations for Cybercab production

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

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Credit: Tesla

Tesla CEO Elon Musk outlined expectations for Cybercab production as the vehicle is officially set to start rolling off manufacturing lines at the company’s Giga Texas factory in less than 100 days.

Cybercab is specifically designed and catered to Tesla’s self-driving platform and Robotaxi ride-hailing service. The company has been pushing hard to meet its self-set expectations for rolling out an effective self-driving suite, and with the Cybercab coming in under 100 days, it now needs to push for Unsupervised Self-Driving in the same time frame.

Tesla CEO Elon Musk confirms Robotaxi is set to go unsupervised

This is especially pertinent because the Cybercab is expected to be built without a steering wheel or pedals, and although some executives have said they would build the car with those things if it were necessary.

However, Musk has maintained that the Cybercab will not have either of those things: it will have two seats and a screen, and that’s it.

With production scheduled for less than 100 days, Musk broke down what people should expect from the initial manufacturing phases, being cautiously optimistic about what the early stages will likely entail:

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

Musk knows better than most about the challenges of ramping up production of vehicles. With the Model 3, Musk routinely refers to it as “production hell.” The Cybertruck, because of its polarizing design and stainless steel exterior, also presented challenges to Tesla.

The Cybercab definitely presents an easier production process for Tesla, and the company plans to build millions of units per year.

Musk said back in October 2024:

“We’re aiming for at least 2 million units a year of Cybercab. That will be in more than one factory, but I think it’s at least 2 million units a year, maybe 4 million ultimately.”

When April comes, we will find out exactly how things will move forward with Cybercab production.

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Tesla reveals awesome Model 3 and Model Y incentive, but it’s ending soon

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Credit: Tesla Europe & Middle East/X

Tesla has revealed an awesome Model 3 and Model Y incentive to help consumers make the jump to one of its affordable mass-market vehicles, but it’s ending soon.

Tesla is offering one free upgrade on eligible inventory of the Model 3 and Model Y until February 2.

This would help buyers receive the most expensive paid option on the vehicle at no additional cost, meaning white interior or a more premium paint option will be free of charge if you take delivery on or before February 2.

Tesla states on its website for the offer:

“Only for limited inventory while supplies last. Price displayed on inventory listings already deducts the cost of the free option.”

This latest incentive is just another advantage Tesla has by selling its vehicles directly and not using some sort of dealership model that relies on approvals from higher-ups. It is important to note that these programs are offered to help stimulate demand and push vehicles into customers’ hands.

It is not the only incentive Tesla is currently offering, either. In fact, there is a much larger incentive program that Tesla is working on, and it has to do with Full Self-Driving transfers, which could result in even more sales for the company through Q1.

Tesla is ending its FSD Transfer program on March 31, as it plans to transition to a Subscription-only basis with the self-driving suite for anyone who has not already purchased it outright.

This could help drive some on-the-fence buyers to new vehicles, but it remains to be seen. Given the timing of the program’s demise, it appears Tesla is hoping to use it to add additional sales and bolster a strong Q1 2026.

Interior and exterior paint colors can add up to $2,000 if you choose the most premium Ultra Red body color, or an additional $1,000 for the Black and White interior option. The discount, while small, could help get someone their preferred design configuration, instead of settling for something that is not quite what they want.

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Tesla Full Self-Driving gets outrageous insurance offer with insanely cheap rates

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Credit: Ashok Elluswamy/X

Tesla Full Self-Driving is getting an outrageous insurance offer with insanely cheap rates that will slash the cost of coverage by 50 percent.

Lemonade, a digital insurance company, has launched its first-of-a-kind product known as Lemonade Autonomous Car Insurance, and it is starting with an exclusive offer to FSD. The new offer will cut rates for FSD-engaged driving by “approximately 50 percent,” highlighting the data that shows a significantly safer driving environment when the suite is activated and engaged.

The company also said it plans to introduce even cheaper rates as Tesla continues to release more advanced FSD versions through software updates. Tesla has been releasing new FSD versions every few weeks, highlighting vast improvements for those who have the latest AI4 chip.

The announcement comes just a few months afterLemonade Co-Founder and President Shai Wininger said that he wanted to insure FSD vehicles for “almost free.” He said that Tesla’s API complemented Lemonade’s AI-based platform because it provides “richer and more accurate driving behavior data than traditional UBI devices.”

Tesla Full Self-Driving gets an offer to be insured for ‘almost free’

In mid-December, Lemonade then offered Tesla owners in California, Oregon, and Arizona the opportunity to connect their vehicles directly to the company’s app, which would provide a direct connection and would require a separate telematics device, which is required with other insurance providers who offer rates based on driving behaviors.

This latest development between Lemonade and Tesla is something that Wininger believes will be different because of the advanced nature of FSD:

“Traditional insurers treat a Tesla like any other car, and AI like any other driver. But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human.”

He went on to say that the existing pay-per-mile product has given the company something that no traditional insurer has been able to offer. This comes through Lemonade’s “unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing.”

The reputation FSD has gathered over the past few years is really impressive. Wininger backed this with some more compliments:

“Teslas driven with FSD are involved in far fewer accidents. By connecting to the Tesla onboard computer, our models are able to ingest incredibly nuanced sensor data that lets us price our insurance with higher precision than ever before.”

The product will begin its official rollout in Arizona on January 26. Oregon will get it a month later.

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