SAN FRANCISCO (Reuters) – Tesla has cut the price of its Full Self-Driving (FSD) driver-assistance software to $8,000 from $12,000 in the United States as CEO Elon Musk doubles down on self-driving technology.
Musk is betting the technology will become a cash cow for the world’s most valuable automaker. But for years it has failed to achieve its goal of enabling self-driving as the technology comes under increasingly strict regulatory and legal scrutiny.
Earlier this month, Musk said Tesla (NASDAQ:) would unveil its robotaxi on August 8, after Reuters reported that Tesla had ditched its low-cost mass-market vehicle in favor of a robotaxi.
According to Tesla’s website, customers can now pay $8,000 for the FSD feature or subscribe to use it for $99 per month.
Tesla recently reduced the monthly subscription price for this feature in the US from $199, while giving every Tesla customer a free month of the software.
Tesla is also cutting prices on its lineup of vehicles in major markets. Struggling with falling sales and an intensifying price war on electric vehicles, Tesla has cut prices by nearly $2,000 across its entire lineup in China, matching the price cuts in the United States.