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

Core Insights - Tesla's Full Self-Driving (FSD) system will see a price increase as its capabilities improve, with the current $99/month for supervised FSD expected to rise once unsupervised FSD is implemented [2][4] - The unsupervised FSD will allow users to engage in other activities, such as being on their phone or sleeping during the ride, marking a significant value enhancement for customers [2][3] FSD Price Hike - Elon Musk announced on social media that the price for supervised FSD will increase as the technology advances [2] - The anticipated "value jump" will occur with the introduction of unsupervised FSD, which allows for complete hands-off driving [2][3] Autopilot Changes - Tesla has discontinued the Autopilot feature in the U.S. and Canada, replacing it with Traffic-Aware Cruise Control for all new car purchases [3] Value Generation - ARK Invest, led by Cathie Wood, estimates that the FSD system could generate eight times more value for customers once unsupervised autonomy is achieved, making the current pricing a great deal [4] Driverless Robotaxis - Tesla has launched driverless Robotaxis in Austin, which operate on unsupervised FSD, with Musk claiming that autonomous vehicles are "essentially" solved by Tesla [5] - Concerns have been raised regarding the safety of these Robotaxis, as human-driven Tesla vehicles were observed following them, suggesting a potential shift in safety protocols [6] Insurance Collaboration - Lemonade Inc. has partnered with Tesla to reduce insurance rates by 50% for FSD-engaged driving, promoting the system as safer than human drivers [7] - This collaboration has faced criticism, with some investors labeling it a marketing gimmick rather than a genuine safety improvement [7]