Tesla Offering One-Month Free Trial of Full Self-Driving Technology Amid Price War and Declining Adoption Rates

Elon Musk announces Tesla will provide US customers with month-long trial of driver-assist technology

Tesla is offering a one-month free trial of its Full Self-Driving (FSD) technology to US customers, announced CEO Elon Musk. This move comes as the company faces pressure on sales and margins due to increased price competition and softening demand. Musk has been promoting FSD software, priced at $12,000, as a potential source of profit for the company. However, achieving full autonomy has been a challenge due to regulatory and legal scrutiny of Tesla’s safety and marketing practices.

In a post on social media platform X, Musk announced that all US cars capable of FSD will have the feature enabled for a one-month trial starting this week. He instructed Tesla staff to provide demonstrations of FSD to new buyers and owners of serviced vehicles in an effort to showcase the capabilities of the technology. Despite Musk’s enthusiasm for the software, the adoption rate of FSD has been declining in North America, with only 14% of customers purchasing the package in the third quarter of 2022, down from a peak of 53% in 2019.

Tesla’s margins have been impacted by a price war with competitors and lower FSD take rates. The company has warned of slower delivery growth this year as it focuses on producing its next-generation electric vehicles. Analysts believe that Musk’s recent push to demonstrate FSD is aimed at boosting deliveries and revenues, in line with past end-of-quarter tactics. The FSD software, which requires active driver supervision, is also available as a subscription for $199 per month.

Sophia Reynolds

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