Why Elon Musk is Increasing Prices of Tesla’s ‘Full Self-Driving’ Model

Why Elon Musk is Increasing Prices of Tesla’s ‘Full Self-Driving’ Model
Why Elon Musk is Increasing Prices of Tesla’s ‘Full Self-Driving’ Model

Recently, it’s been reported that Tesla will raise the price of the top tier “Full Self-Driving” version of its Autopilot driver assistance package by around $1,000 as CEO Elon Musk, revealed on Twitter on July 1st saying, “[The] price will continue to rise as the software gets closer to full self-driving capability with regulatory approval. It that point, the value of FSD is probably somewhere in excess of $100,000.”

How does the recent model function?

At present, it provides access to customers to a series of gradational developments to Autopilot where one can centre the car in a lane, even around curves, adjusting the vehicle’s speed based on the car moving ahead. The “Navigate on Autopilot” feature indicates and performs lane changes in order to get around slower vehicles, besides steering it toward highway interchanges and exits. Apart from that, it also slows down the four-wheeler to cease at traffic lights as well as stop indications.

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How come autonomous branding?

However, the driver should put his hands on the wheels throughout, as Autopilot cant independently operates without manpower. But the company’s gift lies in the satisfaction of undergoing a self-driving experience when the features work in collaboration.

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The logic behind the price hike

The second reason behind the price hike stems from Musk’s promise stating that once Tesla’s cars would be capable to run automatically, the firm will grip such capacity into a “robotaxi fleet” whose objective is to double the vehicle so that other people can use it while the owner is away.
And the final cause can be attributed to the financial balance sheet. It says, when a customer pays $7,000 for the Full Self-Driving option during the vehicle purchase, Tesla simply counts half of it as revenue. Then the rest gets calculated as “deferred revenue.”

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