Tesla Launches New Subscription Service at $199 per Month

On Saturday, Tesla Inc. announced its plans to launch a subscription service for its customers looking to make use of its advanced driver assistance software called “Full Self-Driving (FSD) capability”. Instead of paying $10,000 upfront, the alternative offers customers to pay $199 per month.

Through this service, Tesla hopes to generate recurring revenue while expanding its customer base at the same time, especially for the pricier features of its electric cars.

The electric automaker, however, emphasized that the additional features “do not make the vehicle autonomous,” and that it will still “require a fully attentive driver, who has their hands on the wheel.”

“If … you look at the number of customers who did not purchase FSD upfront or on a lease and maybe want to experiment with FSD, this is a great option for them,” explained Tesla CFO Zachary Kirkhorn earlier in April when the subscription service was still in the works.

According to Tesla, the service will only be available to vehicles that have Full Self-Driving computer 3.0 or above. Upgrading to the required hardware will cost consumers another $1,500.

Source: Reuters