Elon Musk on Sunday announced the price of Tesla Inc.’s “Full Self-Driving” feature will rise by 25% next month, from $12,000 to $15,000.
“After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5th,” the Tesla chief executive said in a tweet. He added that the latest version of the software has begun beta testing with some Tesla owners, and that the 10.69.2 version is expected to get a wider release in the coming weeks.
“This build is a big step forward!” he said.
Musk said the current FSD price of $12,000 will be honored for those who buy one of its electric vehicles before Sept. 5.
It was unclear if Tesla will also raise the price of its FSD subscription, which is currently $199 a month.
The price of Tesla’s FSD automated driver-assistance feature has risen steadily over the years, since being introduced for $5,000 in 2019, jumping to $10,000 in 2020 and to $12,000 last September. Tesla’s least expensive vehicle, the Model 3, starts at about $47,000, while the Model Y SUV starts at about $66,000.
Despite its name, the “Full Self-Driving” feature does not offer fully autonomous driving, and Tesla has warned drivers to remain alert and keep their hands on the wheel. Earlier this month, the California Department of Motor Vehicles accused Tesla of false advertising over how it promotes its FSD and Autopilot features, and said Tesla’s disclaimer “does not cure the violation.” If not addressed, the complaint could lead to Tesla getting its California manufacturing and dealing licenses suspended or revoked.
Earlier this month, Tesla vehicles topped the National Highway Traffic Safety Administration’s list of crashes involving automated driver-assistance features, with Teslas making up about 70% of the roughly 400 crashes reported over an 11-month period. Regulators noted the data was not complete enough to make conclusions, but warranted further study.
Tesla shares TSLA, -2.05% have surged 34% over the past three months, but are still down 16% year to date. The S&P 500 SPX, -1.29%, meanwhile, has gained 8% over the past three months and is down 11% this year.