Musk is Planning to Increase the Price of Auto Pilot Cars

  • POSTED ON: May 21, 2020

of Tesla, Elon Musk announced on Twitter this week that he would be increasing the price of the latest Full Self Driving version of its Autopilot driver assistance package by almost $1000. The price would be regulated from July 1st and Tesla might think about increasing it even further as we get close to the month.

Even though the name mentions self-driving, the truth couldn’t be farther from it. Tesla has not yet released any model that can drive itself without any sort of human assistance. Autopilot cars, however, do give customers access to a series of incremental improvements to Autopilot. So, Musk believes he should cash this feature as much as he can because the price of $7000 does not do justice to the invention. He said that the company will release the final price once the software is completed.

“[The] price will continue to rise as the software gets closer to full self-driving capability with regulatory approval. At that point, the value of FSD is probably somewhere in excess of $100,000,” he tweeted Monday.

Source: The Verge

To common folks, this might seem like a lot for cars that are not even capable of driving without human intervention. The feature so far can only center a Tesla in a lane, around curves, and adjust the car’s speed based on the vehicle ahead. The software can also slow down the car at traffic lights and stop signs.
However, if the road signs are faded or missing, the car would not be able to perform these functions efficiently. This is why the driver needs to be alert at all times and keep their hands on the steering wheel.

Experiments suggest that when all the requirements set by Tesla are fulfilled, that is the road signs are clear and the street itself is not too crowded, then yes, it might feel like the car is driving itself. This is probably why Musk has so much confidence in his product and wants to increase the price.

Elon Musk also has plans for a robotaxi. Now this is an interesting bit because Tesla aims to install a special feature in all of its cars. Basically, when the owners would not be using their vehicles, other people might be able to hail them like Taxis. Musk predicts that this will allow the owners to earn up to $30 000 per year and also generate revenue for Tesla itself.

“[C]consumers will still be able to buy a Tesla, but the clearing price will rise significantly, as a fully autonomous car that can function as a robotaxi is several times more valuable than a non-autonomous car,” he said last year.

It seems like Musk keeps coming up with strategies to ensure an efficient flow of cash in the company. In the past, he has been clear about his motives, and one of them certainly revolves around money. This suggests why he doesn’t just want to earn money through owners but also ensure a cycle of further revenue that keeps increasing Tesla’s net worth.

Updated May 21, 2020
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