Tesla FSD Is Now $15K, but Is It Any Closer to Level 3?

• Tesla raises price of its Full Self-Driving software suite to $15,000, after Elon Musk hinted the price of the system would rise.

• The Tesla CEO has indicated in recent days that FSD Beta, still in a testing phase of sorts, would be widely available by year's end.

• Industry observers have raised questions about the trajectory of FSD's increasing capabilities, as the company told California regulators over a year ago that FSD is a Level 2 system.

Starting this week, Tesla's so-called Full Self-Driving system will now cost buyers $15,000, up from $12,000, or a $199 monthly subscription fee.

But with this price hike, is it any closer to Level 3 systems currently being rolled out by other automakers? A few days ago Tesla CEO Elon Musk said it was his goal to see FSD in wide release by the end of 2022, once again promising Tesla vehicles would be capable of "self-driving."

But the system, still considered to be Level 2 by industry experts (as is Tesla's Autopilot), does not appear to be on its way to becoming Level 3 or Level 4 with its current suite of hardware and software, which permit users to completely divert their attention from the road for minutes or hours at a time, while the earliest cars with FSD that buyers bought years ago are getting older.

At this point, as in years past, it's difficult to pinpoint just what Musk means by "self driving." The company admitted to California regulators over a year ago that FSD is not meant to exceed Level 2 functions, which require drivers to remains alert, monitor the road, and be ready to assume control at all times. Tesla itself in its official instructions requires drivers to keep their hands on the steering wheel and to pay attention to traffic—tasks surprisingly similar to just driving—while not promising eyes-off and hands-off capabilities.

"The currently enabled Autopilot, Enhanced Autopilot and Full Self-Driving features require active driver supervision and do not make the vehicle autonomous," the automaker says on its website. "Full autonomy will be dependent on achieving reliability far in excess of human drivers as demonstrated by billions of miles of experience, as well as regulatory approval, which may take longer in some jurisdictions."