Tesla has recently taken a very clever move to clear its inventory vehicles. The company has announced to reduction in the price of its Full Self-Driving (FSD) package. The new FSD price will be $4,500, a steep drop from its usual price of $15,000. This move is part of a broader strategy to clear out excess inventory by the end of the quarter.
This period is seen as the optimal time for customers to purchase vehicles at lower prices. The reduced pricing on FSD will also help Tesla to promote the adoption of its advanced self driving technology.
FSD Price Changes
The pricing history of Tesla’s FSD has seen significant fluctuations over time, with noticeable increases and decreases:
2016.10.19: $3,000
2019.02.28: $6,000
2019.08.16: $7,000
2020.07.01: $8,000
2020.10.22: $10,000
2022.01.17: $12,000
2022.09.05: $15,000
2023.09.01: $12,000 (decrease)
2024.04.21: $8,000 (decrease)
2024.09.20: $4,500 (decrease for inventory vehicles)
The latest price reduction was pretty significant with a massive drop from the peak price of $15,000 in September 2022. This signifies Tesla’s effort to make ongoing adjustments in response to market conditions and sales performance. The reduced pricing is also being seen as Tesla’s effort to convince its consumers to purchase Tesla vehicles with FSD capabilities as it faces growing competition in the electric vehicle market.
By offering FSD capabilities at lower cost, the company is likely to target those customers who previously may have hesitated to pay extra money for that feature.
The decision to reduce the price is influenced by many factors such as higher inventory levels. When the inventory levels increase and the market demand for electric vehicles slows down, it is often seen that Tesla has decreased the prices in order to lower its inventory of unsold vehicles and the latest move is consistent with that pattern.
The company has recently ramped up production at its new factories Giga Texas and Giga Berlin and one is under construction in Shanghai. This has significantly increased the inventories of unsold cars. Price cuts will help to clear some of this and make room for future newer models.
Apart from the price reduction of FSD, Tesla has also halved the monthly subscription fee for FSD from $199 to $99, making it more affordable and accessible to its customers.
These strategies are aimed to promote customer knowledge and engagement with FSD technology.
Tesla’s FSD and its Importance
Tesla’s Full Self-Driving technology has been the core center of the company’s long-term vision of fully Autonomous driving. While this is still in a Beta stage, it offers a variety of advanced features which makes it closer to achieving self-driving capabilities. Some of these features include automated lane changing, traffic-aware cruise control, auto park, and the ability to recognize and respond to traffic lights and stop signs.
That’s not it, Tesla FSD offers even more variety of advanced features like ‘Smart Summon’ and ‘Navigate on Autopilot’.
Conclusion
Tesla’s decision to slash the pricing of FSD to $4,500 is a strategic Move aimed at boosting sales on its EVs and clearing the old inventory. This will not only make FSD more accessible but also help Tesla to stay competitive in this fierce electric vehicle market.
