Tesla CEO Elon Musk has indicated that the company’s Full Self-Driving suite will likely increase in price on July 1. This marks the first time the feature will receive a price adjustment since November 2019.
After releasing details that outlined the future mass rollout of Tesla’s Traffic Light and Stop Sign detection feature, Musk received an array of questions from the electric car community on Twitter. One asked if Full Self-Driving was still due to an increase in price in the future as Musk suggested in the past. The CEO’s response was clear.
Yeah, probably July 1st
— Elon Musk (@elonmusk) April 3, 2020
November’s price increase was the result of the company’s release of Smart Summon. At the time, this was only to US customers, as Smart Summon was still being regulated and approved in other countries. Smart Summon’s release increased the FSD price by $1,000, from $6,000 to $7,000.
Just two nights before the price increase, Musk reminded customers that FSD price increases would be perennial, giving those interested a chance to purchase the software before they would have to spend an additional $1,000 for the suite.
Interestingly enough, the purchase of Full Self-Driving locks the customer into that price, and they will likely not have to pay additional money for features that will be released in the future. For example, those who would have purchased FSD on October 31 would have paid $6,000 and received Smart Summon capabilities if they lived in an area where the feature was legal. However, buying FSD just one day later would have cost an additional $1,000 while providing the same features.
Price increases for FSD makes sense considering that the suite’s features are becoming more sophisticated and advanced, and the company eventually plans to roll out a fully autonomous driving system. Elon Musk has said in the past that a Tesla equipped with a full-featured FSD suite could be worth between $100,000 and $200,000 once the company rolls out its Robotaxi ride-hailing program.
While Tesla’s Full Self-Driving capabilities are geared toward making the road safer for everyone, the additional features the company rolls out add to the value of a vehicle’s software. As FSD rolls out more features over time, a Tesla could become one of the first vehicles to increase in value as it ages, bucking the auto industry once more.