Tesla To Roll Out FSD Subscription Service By the End of 2020


Tesla will be rolling out a subscription model to its Full Self-Driving suite, according to Elon Musk, and it will likely be introduced by the end of 2020. This strategy may be the key to FSD's widespread adoption, as it will lower the system's entry point for many of the company's budget-conscious EV owners.

The idea of an FSD subscription has been around for some time. Noted Tesla hacker-enthusiast @greentheonly even revealed recently that Tesla had codes for FSD subscriptions on its vehicles for over a year now. This suggests that Tesla is only waiting for the right time to introduce its FSD subscription service. The right time, if the first quarter earnings call is any indication, is expected to be later this year.

During the recent earnings call, Tesla took questions from institutional investors that were aggregated from Say, a platform that allows shareholders to submit their inquiries to companies. One of the queries submitted was about FSD subscriptions and when they will be rolled out. Musk provided a timeframe, though he also emphasized that FSD makes a lot of sense if purchased outright.

"I think we will also be having it as a subscription service, but it will be towards the end of this year. It was to make available FSD as an option. In our view, buying FSD is an investment in the future and we're confident that his investment that will pay off to the consumer. My guess is the FSD option is something people will not regret doing," he said.

This was echoed by CTO Zachary Kirkhorn, who noted that FSD is bound to increase the vehicle of Tesla's cars over time. This is a notable point, especially since Tesla's flagship automated driving features will most likely be rolled out to the FSD suite. This means that most of the company's critical self-driving tech will likely be offered as part of its premier software suite.

An FSD subscription model will most definitely work. One of the most significant barriers for FSD adoption is its price, which currently stands at $7,000 upon purchase of a vehicle. That's a notable addition to the cost of the company's vehicles, but if its advanced features were to be offered as something that can be accessed on demand, it would likely see a lot more adoption from Tesla's electric car buyers.

Featured Image Credit: Tesla Inc.

About the Author

Ma. Claribelle Deveza

Ma. Claribelle Deveza

Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.

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