Tesla is valuing Full Self-Driving high only when it’s convenient
Tesla is only valuing its Full Self-Driving package high when it’s convenient for the company. When it’s not, like for trade-ins, the automaker is not as optimistic about the value.
Elon Musk famously said that Tesla vehicles have become “appreciating assets” due to the Self-Driving (FSD) package.
The logic behind the claim is that he believes as Tesla improves its FSD package through software updates, it would increase the value of Tesla vehicles. To reflect that, he said that Tesla would incrementally increase the price of the FSD package.
Musk suggested that the value of FSD could end up closer to $100,000 to $200,000 once fully autonomous, but those claims have yet to materialize, and Tesla has missed several of Musk’s public timelines to achieve self-driving.
Instead, the automaker has released FSD Beta and kept increasing the price of the package, which now sells for $15,000 in the US and $19,500 CAD in Canada. That’s when you add the package to a new order or an existing vehicle, but that’s the only time Tesla values the FSD package that high.
Several Tesla owners have reached out to Electrek, frustrated with the process of upgrading their cars with Tesla because of the trade-in value the automaker would assign to their existing Tesla vehicles.
The automaker has started to list its trade-in estimates with the mention that it “includes the value of Full Self-Driving.”
Tesla owners reported that Tesla appears to value the package for trade-ins at a fraction of what it sells it for.
Having a Model 3 with FSD, I checked this out for myself, and sure enough, I was surprised to find out that Tesla was offering me only $41,200 CAD for my car:
That includes the FSD package, which Tesla sells for $19,500 in Canada – about half of the value Tesla is assigning to the whole car.
For reference, a new Model 3 Performance starts at $73,000 CAD in Canada, and it would cost $96,000 when configured like mine with FSD.
If we compare to trade-in estimates Tesla gave to buyers with similar Model 3 Performance without FSD, it would appear that Tesla values the package at well below $10,000. That’s despite not having delivered on the promises of the functionality of the package – aka full autonomy.
Electrek’s Take
What is so frustrating about this is that Elon is always raving about how incredible FSD is and how most people “don’t understand its value,” but yet, Tesla itself heavily devalues it in used cars, despite not delivering on its promises.
I think most people know the solution to this – other than giving a higher value – and that’s letting Tesla owners transfer FSD to new cars.
It would encourage current Tesla owners with FSD to upgrade to new cars without feeling like they bought FSD for nothing, or barely anything, on their previous vehicles.
I don’t understand why Tesla doesn’t do that. It wouldn’t be expensive, and it would help sales while creating some goodwill around FSD.
What do you think? Let us know in the comment section below.
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Tesla has started to offer discounted financing on Cybertruck as the electric pickup truck undoubtedly turns out to be a flop.
Tesla claimed over 1 million reservations for the Cybertruck, and CEO Elon Musk said he could see Tesla producing 500,000 units per year.
However, that was before Tesla announced that the production version would be much more expensive and have a shorter range than what was initially announced.
The Cybertruck has now been in production for a year and a half, and it looks like Tesla would be lucky to sell about 10% of Musk’s goal of 500,000 units.
The automaker doesn’t report Cybertruck sales, but it is estimated that Tesla delivered roughly 40,000 Cybertrucks in 2024, and it is expected to have even more issues selling the truck this year.
Tesla has taken several steps to help sales.
We reported that Tesla launched Cybertruck leases to help move vehicles. The company is even still tucked with “Foundations Series” Cybertrucks, and we found out that Tesla buffed “Foundations Series” badges out of some trucks to sell them as cheaper regular Cybertrucks.
For the remaining “Foundations Series,” which there still are despite Tesla switching to regular Cybertruck production in October, Tesla has even offered free Supercharging for life.
Now, Tesla is stepping up its game, and it is offering discounted financing on new Cybertruck orders:
Tesla announced 1.99% APR for a limited time:
1.99% APR available for a limited time for well-qualified buyers
WIthout the “promotion”, the rate for excellent credit is 5.84%.
While Tesla is discounting the rates, it is not discounting them as much as for new Model 3 orders.
We reported earlier this week that Tesla offers 0% and 0.99% with $0 down on new Model 3 orders in the US until the end of the quarter.
Electrek’s Take
It is very possible that Tesla can’t sell more than 10,000 Cybertrucks this quarter, which would extrapolate to 40,000 units per year or less than 10% of what Elon said he would see Tesla delivering.
Now, the cheaper single motor Cybertruck should help, but by how much? It could bring Tesla to 20-30% of the volume Elon saw possible?
I think it’s fairly clear that the Cybertruck is a flop.
Tesla launched a single new vehicle in the last 5 years and it is a flop.
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Environment
Toyota launched its cheapest EV in China and it crashed the server starting at just $15,000
Toyota looks to grab a bigger share of the world’s largest EV market as it takes aim at BYD and other low-cost leaders. On Thursday, Toyota launched its cheapest EV in China, the bZ3X, starting at roughly $15,000. The new electric SUV crashed the server with over 10,000 orders in an hour.
Meet Toyota’s cheapest EV in China, the bZ3X
The bz3X is Toyota’s “first 100,000 yuan-level pure electric SUV” in China and its cheapest EV to hit the market so far.
Toyota’s Chinese joint venture, GAC-Toyota officially launched the “Bozhi 3X,” or bZ3X for short, in China on March 6. Shortly after, the company said orders for its new electric SUV were “so popular that the server crashed” after revealing prices start at just over $15,000 (109,800 yuan).
After securing over 10,000 orders in just one hour, Toyota boasted again that “the server is overwhelmed.” The launch comes after blind pre-orders opened in December, starting at just under $14,000 (100,000 yuan).
The bZ3X is available in two versions, with or without its full-scenario smart driving tech. The non-smart tech model starts at 109,800 yuan ($15,000) with five trim options while the smart driving model starts at 149,800 yuan ($20,500).
For 159,800 yuan ($22,000), the range-topping “610 Max” trim provides up to 610 km (379 miles) CLTC range from a 67.92 kWh LFP battery. The base “430 Air” gets up to 430 km (267 miles) from a 50.03 kWh LFP battery pack.
Toyota said the interior provides “a mobile space that is comfortable as home,” with front and rear seats that can fold down to provide nearly 10 feet (3 meters) of space.
Inside, the electric SUV has a 14.6″ infotainment screen with voice recognition and an 8.8″ driver display. It also includes a two-spoke multi-function steering wheel.
Toyota’s new bZ3X is its first vehicle with the Momenta 5.0 Intelligent Driving System. Powered by NVIDIA Drive AGX Orin X, it comes with 25 ADAS features, such as parallel parking, remote control parking, high-speed pilot, light traffic assist, and blind spot monitoring.
GAC-Toyota claimed it will be “one of the first automakers in the world to realize a one-stage end-to-end intelligent driving model.” With human-like intelligence, the vehicle “gets smarter and better with use.”
At 4,600 mm long, 1,875 mm wide, and 1,645 mm tall, Toyota’s cheapest EV in China is about the size of BYD’s Yuan Plus (Atto 3) at 4,455 mm long, 1,875 mm wide, and 1,615 mm tall. Starting at 115,800 yuan ($16,000), Toyota’s new bZ3X slightly undercuts BYD’s electric SUV.
What do you think of Toyota’s new electric SUV? Would you buy one for around $15,000? We’ll keep dreaming.
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