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Tesla makes big Full Self-Driving change to reflect future plans

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tesla interior operating on full self driving
Credit: TESLARATI

Tesla made a dramatic change to the Online Design Studio to show its plans for Full Self-Driving, a major part of the company’s plans moving forward, as CEO Elon Musk has been extremely clear on the direction moving forward.

With Tesla taking a stand and removing the ability to purchase Full Self-Driving outright next month, it is already taking steps to initiate that with owners and potential buyers.

On Thursday night, the company updated its Online Design Studio to reflect that in a new move that now lists the three purchase options that are currently available: Monthly Subscription, One-Time Purchase, or Add Later:

This change replaces the former option for purchasing Full Self-Driving at the time of purchase, which was a simple and single box to purchase the suite outright. Subscriptions were activated through the vehicle exclusively.

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However, with Musk announcing that Tesla would soon remove the outright purchase option, it is clearer than ever that the Subscription plan is where the company is headed.

The removal of the outright purchase option has been a polarizing topic among the Tesla community, especially considering that there are many people who are concerned about potential price increases or have been saving to purchase it for $8,000.

This would bring an end to the ability to pay for it once and never have to pay for it again. With the Subscription strategy, things are definitely going to change, and if people are paying for their cars monthly, it will essentially add $100 per month to their payment, pricing some people out. The price will increase as well, as Musk said on Thursday, as it improves in functionality.

Those skeptics have grown concerned that this will actually lower the take rate of Full Self-Driving. While it is understandable that FSD would increase in price as the capabilities improve, there are arguments for a tiered system that would allow owners to pay for features that they appreciate and can afford, which would help with data accumulation for the company.

Musk’s new compensation package also would require Tesla to have 10 million active FSD subscriptions, but people are not sure if this will move the needle in the correct direction. If Tesla can potentially offer a cheaper alternative that is not quite unsupervised, things could improve in terms of the number of owners who pay for it.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Starlink gets its latest airline adoptee for stable and reliable internet access

The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.

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Credit: Southwest Airlines

SpaceX’s Starlink, the satellite internet program launched by Elon Musk’s company, has gotten its latest airline adoptee, offering stable and reliable internet to passengers.

Southwest Airlines announced on Wednesday that it would enable Starlink on its aircraft, a new strategy that will expand to more than 300 planes by the end of the year.

The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.

Tony Roach, Executive Vice President, Chief Customer and Brand Officer for the airline, said:

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“Free WiFi has been a huge hit with our Rapid Rewards Members, and we know our Customers expect seamless connectivity across all their devices when they travel. Starlink delivers that at-home experience in the air, giving Customers the ability to stream their favorite shows from any platform, watch live sports, download music, play games, work, and connect with loved ones from takeoff to landing.”

Southwest also said that this is just one of the latest upgrades it is making to provide a more well-rounded experience to its aircraft. In addition to Starlink, it is updating cabin designs, offering more legroom, and installing in-seat power to all passengers.

Southwest became one of several airlines to cross over to Starlink, as reviews for the internet provider have raved about reliability and speed. Over the past year, Hawaiian Airlines, United Airlines, Alaska Airlines, airBaltic, Air France, JSX, Emirates, British Airways, and others have all decided to install Starlink on their planes.

This has been a major move away from unpredictable and commonly unreliable WiFi offerings on planes. Starlink has been more reliable and has provided more stable connections for those using their travel time for leisure or business.

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Jason Fritch, VP of Starlink Enterprise Sales at SpaceX, said:

“We’re thrilled to deliver a connectivity experience to Southwest Airlines and its Customers that really is similar, if not better, than what you can experience in your own home. Starlink is the future of connected travel, making every journey faster, smoother, and infinitely more enjoyable.”

Starlink recently crossed a massive milestone of over 10 million subscribers.

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Tesla nears closure of Full Self-Driving purchasing option

The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.

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Credit: Tesla

Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.

Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.

The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.

It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.

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Tesla is overhauling its Full Self-Driving subscription for easier access

We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.

This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.

Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.

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The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.

Positives

  • Lower barrier to entry and higher potential adoption
  • Financially better for many users
  • Easier transfers and brand loyalty
  • Predictable recurring revenue for Tesla
  • Access to the latest features

Negatives

  • Higher long-term cost for loyal/long-term owners
  • No true “ownership” or permanence
  • Risk of future price hikes or even deactivation
  • Perceived as of less value
  • Impact on resale and used market

Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.

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Elon Musk’s Boring Company selected for Universal Orlando tunnel project

The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive. 

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Credit: The Boring Company/X

Elon Musk’s The Boring Company has been selected for a proposed underground transit system connecting Universal Orlando Resort and the newly opened Universal Epic Universe. 

The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive. 

As noted in a blooloop report, Universal’s Shingle Creek Transit and Utility Community Development District approved a resolution showing its intent to designate The Boring Company as the contractor for the project. 

The agreement covers the full scope of the project, from the tunnel’s design, construction, and maintenance. The project has also been described in public documents as a “point-to-point innovative transportation” initiative with a 25-year agreement.

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The proposed Boring Company tunnels would directly link Universal’s existing parks with Epic Universe, which sits roughly three miles away from Universal Orlando Resort. Today, buses are the only direct connection between the two destinations.

Project requirements were quite stringent. Bidders were required to demonstrate at least $75 million in bonding capacity, have a minimum of seven years of operational experience, and show prior delivery of a comparable project valued at $25 million or more within the past 15 years. The Boring Company, thanks in no small part to the Vegas Loop, meets these requirements.

The Orlando selection adds to The Boring Company’s growing portfolio of Loop-style systems. In Las Vegas, the Las Vegas Convention Center Loop has transported more than two million passengers in Tesla vehicles through underground tunnels since 2021. The greater Vegas Loop system is also under construction.

For now, residents in the area seem enthusiastic about the upcoming project. In a comment to Fox35, residents noted that the tunnels could improve traffic in the area. 

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“We are very congested at certain times and certain hours and that would certainly help with people not having to budget their time,” Mary Walters-Clark, a resident, stated. Another resident, Scott Heinz, echoed similar sentiments. “I think it would be a new opportunity to lessen traffic load and good for visitors as well,” he said.

The tunneling startup has started bringing its Loop projects to international locations. It recently signed a memorandum of understanding with Dubai’s Roads and Transport Authority to explore the development of a 17-kilometer underground Loop network beneath Dubai.

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