In 2020, Tesla made tremendous progress in developing Full Self-Driving. FSD has been completely rewritten, and around 1,000 beta testers are testing it in the real world. Although the company team still has a lot of work to do with FSD Beta, it is already possible to travel from point A to point B with absolutely no human intervention. At the moment, FSD is sold as an add-on to the car, and its cost is $10,000, however, in a couple of months, Tesla will offer the option of Subscription.
During the Q4 2020 Earnings Call, Tesla CEO Elon Musk said that the company understands that not everyone has the opportunity to purchase FSD, so it will offer its customers a subscription in the next one or two months. This step is intended to widen the access to those who wish to use FSD.
"We will be offering subscription pretty soon in the next month or two. So that should address a lot of people's concerns for being able to get it."
A pay-as-you-go FSD Subscription service would make the feature more affordable for customers, especially for those who don’t expect to use it often. With a FSD subscription option, Tesla owners or renters can choose to pay for the feature for a limited time, and when they feel it would be necessary or most helpful. For example, a FSD subscription—perhaps a one-time use—could help during long trips.
Meanwhile, any FSD sales, whether outright or via Subscription as a Service (SaaS), will be ultra-high profit, directly bolstering Tesla’s bottom line. SaaS, given its enhanced affordability and therefore ease of access, will draw in further accounts receivable to the company.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.