Tesla's "fully automated driving" software just got a big price rise to big12,000

Tesla's "fully automated driving" software just got a big price rise to big12,000

Tesla's "fully automated" (FSD) software is about to receive its second major price increase since it first went into beta in October 2020. The first was $8,000, which quickly rose to $10,000 in a matter of days, and now it is scheduled to rise to $12,000 at the end of this month.

The change, announced by CEO and founder Elon Musk on Twitter, will only apply to the U.S. for now and will take effect on January 17.

In a follow-up tweet, Musk also suggested that this may not be the last price increase. He added, "FSD prices will rise as we get closer to FSD's mass production code release."

For now, users can still pay $199 per month for the feature if they so desire, but in response to a question, Mask said the monthly price will also increase as the software approaches full release.

The software is still in beta mode, but not for everyone. Drivers with the appropriate on-board hardware will also need to prove that they will not be left to the car by activating Tesla's insurance calculator for seven days to assess their general driving ability.

That's because the self-driving software should be able to get a person from A to B without intervention, but the driver still needs to be on standby just in case. In fact, the Beta's cautionary note specifically warns against letting one's guard down, as one might "do the wrong thing at the worst possible time."

Certainly, a one-time payment of $12,000 or a monthly subscription of $199 is a hefty price to pay for beta features, especially those that still require the driver's attention. However, it is worth clarifying that FSD is a major step up from the Autopilot that has been available on Tesla vehicles for years.

As Tesla's website explains, Autopilot is designed to make driving more comfortable, but it still requires the full attention of the driver. It is most effective when driving on highways, as the car can easily see the road lines and match speeds with nearby cars for automatic cruise control. [On the other hand, FSDs require much less driver involvement and can not only respond on highways, but can also enter from ramps and change lanes when the driver flicks the turn signal. They should also be able to respond to traffic signals and park when they reach their destination.

But there is a reason this is still in beta. That's because it's a big step up from Autopilot to FSD. As Musk himself tweeted in April, "The entire road system is designed for biological neural nets with optical imagers." Or, more succinctly, a human being.

Depending on how you look at it, this is either a sign that the $12,000 price tag is a small price to pay for the technology involved, or something best left to humans until proven otherwise.

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