Tesla CEO says the automaker will raise the price of its Full Self-Driving system from $10,000 to $12,000 on January 17.
The Level 2 system is also offered on a subscription basis for $199 a month, and is positioned above the more basic Autopilot.
The price hike follows several regular updates of FSD Beta, which is available to a small percentage of owners with a high-enough driving safety score, and includes more advanced experimental features.
Tesla CEO Elon Musk revealed that the automaker plans to raise the price of its so-called Full Self-Driving system in the coming days, raising the one-time payment from $10,000 to $12,000 starting on January 17. Tesla also plans to raise the monthly subscription price of FSD by an unspecified amount, with the subscription currently offered for $199 a month.
"FSD price will rise as we get closer to FSD production code release," Musk explained in a tweet on January 7.
"Monthly subscription price will rise when FSD goes to wide release."
Tesla's Full Self-Driving System, or FSD, offers automatic lane changes on highways, a Smart Summon feature that automatically retrieves a car from a parking spot to its owner, and Autopark, which parallel or perpendicular parks a vehicle. Tesla's Autopilot, on the other hand, is a more basic system, and includes autosteer on clearly marked roads and traffic-aware cruise control, which matches the speed of the car to nearby traffic.
"Autopilot comes standard on every new Tesla. For owners who took delivery of their cars without Autopilot, there are two packages available for purchase, depending on when your car was built: Autopilot and Full Self-Driving Capability," the automaker notes.
Autopilot does not actually make the car "self-driving," as Tesla notes, and drivers are required to monitor traffic at all times and keep their hands on the steering wheel.
Tesla FSD price rising to $12k on Jan 17
— Elon Musk (@elonmusk) January 7, 2022
Another version, dubbed FSD Beta, is currently offered only to owners with a driving score of 97 or higher, and only in a Beta release form. FSD Beta, which includes experimental but incomplete features like autosteer on city streets, has been updated every few months and is due to receive yet another update soon, Musk indicated. The Tesla CEO has not mentioned just when a final version will be offered to buyers or subscribers, or whether its capabilities will actually exceed SAE Level 2, which the automaker has previously told California officials is the ceiling for this system. Tesla and its CEO have generally avoided the SAE autonomous driving level system in the past and in the present when describing the various features of what it calls Full Self-Driving.
"Beta 10.9 should be ready in about a week," Musk added in a tweet on January 7.
"Beta 11 with single city/highway software stack & many other architectural upgrades probably next month."
The planned price hike for FSD follows some significant price increases for Tesla vehicles in recent months, in addition to the debuts of updated Model S and Model X vehicles, which made up just a tiny percentage of all Tesla vehicles produced last year.
Previous price hikes for FSD have received some pushback from owners, in addition to some criticism of increasing hardware requirements that have left out owners of some older Tesla vehicles. In the past Tesla has indicated that its vehicles may not need hardware updates for future versions of autonomous software to be used, but has reversed on that promise
Tesla's lower-tier Autopilot driver-assist system has been under investigation by the NHTSA since 2021 for a series of crashes into the backs of first responder vehicles, while the marketing of Full Self-Driving has prompted calls from lawmakers for an FTC probe.
"Each new Tesla vehicle is equipped with 8 external cameras, 12 ultrasonic sensors and a powerful onboard computer [to] provide an additional layer of safety to guide you on your journey," Tesla notes. "Model 3 and Model Y built for the North American market have transitioned to camera-based Tesla Vision, which are not equipped with radar and instead rely on Tesla’s advanced suite of cameras and neural net processing to deliver Autopilot and related features. Model S and Model X continue to be equipped with radar."