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Tesla has finally released the long-awaited subscription option for its full self-drive feature. The price? $ 199.00 per month.
Customers who wish to subscribe can do so in the Tesla mobile app and they will be billed through their Tesla account. Tesla will allow subscribers to cancel at any time. After cancellation, the full self-drive features will remain active until the end of the current billing period.
Until now, Tesla has only offered access to the Full Self-Driving feature set as a purchase rather than a subscription. The price has increased over time and currently costs $ 10,000. At $ 199 per month, customers who decide to purchase the entire four years and two months.
Stay ahead of the game by subscribing to Tesla Daily on YouTube.
Many owners have expressed frustration with the initial purchase option as the functionality is tied to the vehicle rather than the owner. While having the option contributes to the resale value, options generally do not recoup their full cost in the used market. This can make it difficult to upgrade to a newer Tesla vehicle, especially as the cost of the option has increased over time. A subscription may be a more acceptable option for those who plan to keep their car for a shorter period.
For Tesla, a subscription option will reduce both revenue and profitability from new sales, but simultaneously create a new recurring line of business – one that is expected to show incredible margins. Tesla’s third quarter earnings report in October will be the first opportunity for investors to judge the impact, although Tesla will likely discuss more details of its second quarter earnings call in little more than a year. week.
Are you going to subscribe to the Full Self-Driving option? Let us know on Twitter @teslapodcast.
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Disclosure: Rob Maurer is long on TSLA stocks and derivatives.
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