Elon Musk says Tesla is raising price of 'Full Self-Driving' software to $15,000

The move raises the price by $3,000, which amounts to a 25% hike.

August 22, 2022, 9:53 AM

Tesla is raising the price of its "Full Self Driving" software to $15,000, Elon Musk said in a tweet on Sunday.

Tesla is facing scrutiny from federal and state officials over how it has advertised its self-driving technology, as well as concern over safety risks involved with the self-driving capability.

Customers who order the Full Self Driving, or FSD, software before Sept. 5 will receive the product under the current price, Musk, Tesla's CEO, said in the tweet. The $3K price bump arrives as Tesla introduces FSD beta 10.69, a new iteration that boasts "improved overall driving smoothness" and "reduced false slowdowns near crosswalks," according to the company.

The FSD software doesn't make a car fully self-driving. Rather, users must remain focused on the road and keep their hands on the driving wheel. The Autopilot system, meanwhile, offers navigation to and from user-provided destinations, as well as suggestions for lane changes and other maneuvers to optimize a trip.

Tesla has come under sharp criticism over its marketing of the FSD software and Autopilot.

Earlier this month, the California Department of Motor Vehicles alleged that the company deceptively advertises the products as fully autonomous, according to two filings with California's Office of Administrative Hearings. The filings were first reported by The Los Angeles Times.

Similarly, Senators Ed Markey (D-Mass.) and Richard Blumenthal (D-Conn.) last year called on the Federal Trade Commission to investigate Tesla's advertising of the FSD software and Autopilot.

PHOTO: In this file photo taken on Oct. 23, 2019, the logo marks the showroom and service center for the US automotive and energy company Tesla in Amsterdam.
In this file photo taken on Oct. 23, 2019, the logo marks the showroom and service center for the US automotive and energy company Tesla in Amsterdam.
John Thys/AFP via Getty Images, FILE

"Tesla's marketing has repeatedly overstated the capabilities of its vehicles, and these statements increasingly pose a threat to motorists and other users of the road," Markey and Blumenthal said in a letter to FTC Chair Lina Khan.

In response to the letter, Tesla Senior Director of Public Policy Rohan Patel said in March: "Tesla's Autopilot and FSD Capability features enhance the ability of our cusotmes [sic] to drive safer than the average driver in the U.S." The response was first reported by Reuters.

Tesla vehicles operating under the Autopilot system were involved in 273 reported crashes over roughly a yearlong period ending in June, according to data released that month by the National Highway Traffic Safety Administration. Tesla vehicles comprised almost 70% of the crashes involving advanced driver-assisted systems over that period, the data showed.

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