Tesla Offers Free One-Month Trial of Full Self-Driving Technology in a Bid to Boost Sales and Revenue

Elon Musk announces Tesla will provide US customers with one-month trial of driver-assist technology on Business News

Tesla, the electric car maker, has announced that it will be offering a one-month free trial of its Full Self-Driving (FSD) technology to customers in the United States. This move comes as Tesla faces softening demand and increasing price competition, putting pressure on its sales and margins. CEO Elon Musk has been a strong advocate for the FSD software, priced at $12,000, as a potential source of profit for the company. However, he has faced challenges in delivering on his promise of full autonomy due to regulatory and legal scrutiny of Tesla’s safety and marketing practices.

To showcase the effectiveness of FSD to new buyers and owners of serviced vehicles, Tesla staff have been instructed to provide demonstrations of FSD. In a post on social media platform X, Musk stated that all U.S. cars capable of FSD will be enabled for the one-month trial starting this week. Research shows that the “FSD take rate” in North America is decreasing with only about 14% of Tesla customers purchasing the package in the third quarter of 2022, down from a high of 53% in the third quarter of 2019.

Tesla’s margins have been impacted by a price war with competitors that began over a year ago. The company has also projected lower delivery growth for this year as it shifts focus to producing its next-generation electric vehicles. Analysts suggest that Musk’s directive to demonstrate FSD is part of a strategy to boost deliveries and revenues at the end of the quarter. The FSD software is available for a subscription fee of $199 per month and is not designed to make Tesla vehicles fully autonomous and requires active driver supervision

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