Tesla cuts FSD price by $3k in US, $3.5k in Canada
Tesla has cut the price of its Full Self-Driving (FSD) software by $3,000, to $12k, down from $15k in the US.
North America might not have gotten an official Model 3 refresh announcement yet like Europe did, but it did get something Europe didn’t get overnight: a big drop in the price of FSD.
Almost exactly a year ago, Tesla raised the price of its FSD package from $12k to $15k alongside the release of FSD Beta 10.69, which added some significant improvements to the software’s capabilities. The theory was that as FSD gets better, it gets more valuable, and thus the price should go up as well.
But now, Tesla’s configurator lists the cost of FSD in the US as $12,000 again, a 20% price cut from yesterday’s price for the same software. The change applies to all Tesla models in the US, with a similar price drop in Canada (from $19.5k to $16k CAD).
As was the case during the last price change, FSD’s subscription pricing remains unchanged at $199/month (but if you want to subscribe with a car bought between late 2016 and mid 2019, Tesla will still charge you $1,000 for hardware you already bought).
The price drop hasn’t been echoed in all other territories. It’s still listed at £6,800 in the UK and 59,600kr in Norway, same as it was before today’s price drop. That said, FSD remains significantly cheaper in Europe than the US after taking into account exchange rates – though it also has more capabilities in the US than in other countries.
Tesla has been on a bit of a tear when it comes to price drops this year, massively slashing prices of vehicles multiple times this year, and then gaining access to the full IRA tax credit on its cheapest Model 3, making the car quite a deal. This has made some recent customers angry at the sudden drops in residual value for their vehicles, but has overall benefitted the consumer, as lower prices are generally a good thing.
Electrek’s Take
The most interesting part about this change is that Tesla has often said that the value of FSD is directly related to its capabilities. As the system becomes more capable, it becomes more valuable, which means Tesla should be able to charge a higher price for it.
Tesla CEO Elon Musk has even gone as far as to say that this means Tesla cars with FSD are “appreciating assets”, potentially worth $100-200k due to their value as robotaxis. Though Tesla only uses those values when its convenient, considering FSD much less valuable when offering trade-in estimates to owners.
So if the price goes up as the system gets better, then when the price goes down, does that mean the system has gotten worse?
More likely, this move to lower FSD prices is a way to boost financials as the quarter winds down, ending at the end of this month. A lower price could incentivize owners to pony up for software which has otherwise mostly gone up in price, not down (though it has had some price dips before, for similar cash/demand-generation reasons). This could give Tesla a cash infusion if it feel like it needs one.
Tesla has already rolled out some efforts to boost demand this quarter. The largest (and most craven) one is Tesla’s FSD transfer scheme, allowing owners of FSD to do a one-time transfer of FSD capability from their old vehicle to a new one. This scheme expires on the last day of the quarter, which suggests it is less about goodwill and doing the right thing for customers who years ago purchased expensive and still-subpar software, and more about boosting quarterly demand.
But we also don’t know how long this will last. Maybe it lasts for a year, like the last price change did, or maybe it changes at the end of this quarter. But don’t jump too fast – while today’s price drop was sudden, Tesla has usually telegraphed FSD price increases recently, tying them with big software releases, so you probably won’t get surprised by a sudden price hike if they do decide to raise them again.
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Hyundai is about to launch a new electric SUV in China. With its big debut coming up, Hyundai just dropped a sneak peek, and it looks like it could be the IONIQ 4. Check it out for yourself in the video below.
Is Hyundai teasing the IONIQ 4?
We caught our first glimpse of the new EV model last month after Beijing Hyundai released a few official “spy” photos.
Despite the camouflage, you can see a few design elements, like a light bar across the front, slim LED headlights, and a closed-off grille. At first, it almost looks like a smaller version of the IONIQ 9, Hyundai’s first three-row electric SUV, but with a much sportier, shaped profile.
Beijing Hyundai released a new teaser for the upcoming electric SUV this week. The video shows “a wave of high-end operations” as the vehicle dances across the snow.
The video highlights features like real-time torque control, high-speed cornering, and the SUV’s impressive body control while driving around cones.
Hyundai’s new electric SUV is being called “OE” internally, according to The Korean Car Blog, suggesting it could be an IONIQ model.
All other Hyundai IONIQ EV models were also codenamed with an “E” internally, which is raising speculation that this could be the IONIQ 4.
Like most global OEMs, Hyundai is fighting to compete in an intense Chinese EV market, which is dominated by domestic automakers like BYD.
Hyundai opened its first overseas R&D center last year in China to spearhead its comeback. It will work with local suppliers and tech companies to develop EVs designed for Chinese buyers. The new electric SUV is expected to launch in China later this year, followed by three new energy vehicles, including EVs and EREVs.
Beijing Hyundai will release more information on April 16, with the electric SUV set to “challenge the limit of driving performance.”
What do you think of Hyundai’s new electric SUV? Is this the IONIQ 4? Let us know your thoughts in the comments.
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Charge point provider char.gy has secured a £130 million contract to install 6,000 curbside EV chargers for Brighton and Hove City Council (BHCC) – the UK’s largest installation of its kind.
London-based char.gy has also been awarded a 15-year contract to operate and maintain the charging network.
Installing Level 2 chargers curbside, where most drivers in the UK park, will enable more people to take advantage of cheaper charging rates while juicing up their EVs overnight. (charg.gy’s pay as you go night tariff, between midnight and 7 am, is £0.39/kWh, compared to its £0.59/kWh day tariff.)
John Lewis, chief executive of char.gy, said the project is “a huge moment for the UK and its EV ambitions. This partnership alone will empower thousands of residents to confidently make the switch to electric vehicles, knowing they have easy access to chargers.”
Brighton and Hove City Council is among the first to tap into the government’s Local EV Infrastructure (LEVI) Fund, designed to help English local authorities roll out charging solutions for residents without off-street parking. Future of Roads Minister Lilian Greenwood said making EV charging as accessible as possible is “crucial to making the switch to electric a success.”
The UK now has over 75,000 public EV chargers, according to the Department for Transport—and it looks like the country’s on pace to hit its 2030 target. Back in December, the National Audit Office said the rollout is “on track” to meet the DfT’s estimate that at least 300,000 chargers will be needed by the end of the decade.
Read more: Meet the UK’s largest solar + storage EV charging ‘Superhub’
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