Elon Musk Says FSD's $99/Month Subscription Fee Will Rise As Tesla Scraps Autopilot In US: 'You Can Be On Your Phone…'

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has shared that the company's Full Self-Driving (FSD) system will record a price hike as technology gets better.

FSD Price Hike

On Thursday, Musk took to the social media platform X to share the news. "The $99/month for supervised FSD will rise as FSD's capabilities improve," the billionaire shared.

He added that the "value jump" would happen once Unsupervised FSD comes into play. "You can be on your phone or sleeping for the entire ride," he said.

Tesla Scraps Autopilot

The automaker also scrapped the Autopilot in the U.S. and Canada. All new car purchases from Tesla will come standard with Traffic-Aware Cruise Control now, according to the official Tesla website. The company is still offering Free Supervised FSD with the purchase.

Source: Tesla

Cathie Wood On FSD Value

Investor Cathie Wood-led ARK Invest has shared that the automaker's FSD system will be able to generate eight times more value for customers once the Musk-led EV giant is able to achieve unsupervised autonomy. "At $99 a month or $999 per year, FSD will be quite the steal," the investment firm said.

Elon Musk Touts Driverless Robotaxis

Meanwhile, Tesla has rolled out driverless Robotaxis in Austin, operating on Unsupervised FSD. Coinciding with the rollout, Musk shared at his appearance on the World Economic Forum stage that autonomous vehicles were "essentially" solved by Tesla.

However, questions remain about the driverless Robotaxis, as Tesla vehicles driven by humans were seen following the Robotaxis, which could mean that Tesla may have shifted the safety operators from the Robotaxis to the trailing cars.

Lemonade X Tesla

Insurer Lemonade Inc. (NYSE:LMND) announced a collaboration with Tesla, sharing that it was cutting rates by 50% for FSD-engaged driving, touting the system as much safer than a human driver.

The decision was slammed as a marketing gimmick by investor Jim Chanos, who shared that the true FSD system would boast manufacturer's liability.

According to Benzinga Edge Rankings, Tesla scores well on the Quality and offers a favorable price trend in the Long term.

Price Action: TSLA rose 4.15% to $449.36 at Market close on Thursday, surging 0.68% further to $452.38 during the after-hours session.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Photo courtesy: Del Harper via Shutterstock