Why does Tesla enable FSD on every vehicle and just charge by the mile?

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They probably would lose money if they switched to this system because I bet there are drivers who have FSD and barely use it at all, so they wind up paying less than the normal FSD subscription.

Or just make it so cheap per month it's a no-brainer. They would make more money if they offered it bundled with premium connectivity for $30 a month.

I would LOVE this as someone who drives very little. They really need more options for FSD subscriptions.

50 cents per mile , i would pay at that rate.

People in the USA overall dislike non fixed costs. It’s a psychological thing.

Please don’t give their ceo any more ideas

Your title should be changed to disable, not enable.

Nah. If the change is really drastic, they end up pissing off the fully paid folks.

Actually it should be changed to doesn’t, not does.

How about we don’t give them stupid ideas?

You want fsd and premium connectivity for 30$ a month 💀?

"why don't we just give products that cost money to develop for free or sell at a loss"

That's about what it costs me over the lifetime the vehicle should last me from my $8000 purchase. It's also what it's realistically worth. Stop looking at how the fancy it is and instead look at the actual utility. All it actually does is handle input while you still have to pay attention. The actual value is what it does is exceptionally low right now unless you're on a major trip which most people don't do every month. I'm not paying more than the total operating cost of the vehicle just for input to be done for me while I make sure it doesn't screw up and have to micro manage the speed profiles.

Your keeping your car for 22 years? Wat

No, they would make more money. Right now they only rent to 4 percent of vehicles. If they rented at $20 a month for the FSD portion, they would likely rent to 80 percent of vehicles and make many times more money. What it cost to develop doesn't matter. What benefit it provides does. All it currently does is let you micromanage speed profiles while you watch it work. It's cool and makes things mildly more relaxing but on a day to day basis it provides virtually zero real value unless you're going on a distance trip.

It should last longer than that at 10k miles a year and it will be mine for 11 years or so and then my son's after that. And you completely ignored the total lack of value for the average person that's only driving 30-40 miles a day, let alone those only driving 20 miles a day.

> If they rented at $20 a month for the FSD portion, they would likely rent to 80 percent of vehicles That's a huge assumption that you don't know. You can't just keep lowering the price to try to get the take rate to 100%. That's why there are peoples' who's role are dedicated to pricing. I'm assuming they believe that over time the take rate will improve as FSD gets better and users become more comfortable with FSD. Also if you set the price at $20 it becomes harder to increase the price if they need to, as more users would drop off with any price increase. > What it cost to develop doesn't matter. It actually 100% does. That's why drug companies charge a lot for new drugs that get approved and released to the public, they have to recoup for the cost of development.

They use the money they get from the purchases as milestones to unlock the cash reserbes. 20 a month is nothing.

There is zero marginal cost. They already include the hardware in every vehicle and it would still be trivial to increase unsupervised cost as that has much higher utility value. Eventually supervised FSD is a standard feature on all vehicles, likely within 10 to 15 years. Undercutting the competition at this point to make it so they can't develop level 2 systems profitably while also increasing their own bottom line would be brilliant. There's nobody at Tesla figuring out pricing. There's just Elon's whim. There's absolutely zero chance that 4 percent take at $100 a month is the ideal price point.

What? That’s insanely high… The average daily commute in the USA is 30 miles. That’s $15 per day, or $300 per month just to get to work and back. The average vacation travel (according to Google) is 284 miles one way, so almost $300 just for a single road trip.

Lol, $100 a month from 4 out of 100 people is the same as $20 a month from only 20 percent of owners... There's absolutely zero chance they don't get drastically increased cash flow from a $30 a month bundle.

> There is zero marginal cost. you could say that about any software then. There's zero marginal cost for the new Grand Theft Auto to be sold online at $1 when it will likely sell at $80+ dollars. There was 0 marginal cost to lower the cost of windows & microsoft office and it's how MSFT became the behemoth they did. > Eventually supervised FSD is a standard feature on all vehicles, likely within 10 to 15 years. That's also a huge assumption you're making. There are also large american auto companies that can't even develop a decent EV, and i'm expecting them to develop a self driving car?

I am one of those 7K miles/ year people and I think this is a good idea. But 10¢/mile is more than the electricity where I live.

If gta only sold to 4 percent of gamers for $80 dollars, then selling it cheaper would make far more sense. There are already 5 or 6 companies less than 2-5 years behind Tesla on supervised development being greater than 99 percent coverage for supervised. Technological acceleration will only make that gap easier to close. The industry already closed on and surpassed autosteer which is why Tesla killed it off.

cause its a bad idea. there is no per mile price that makes sense at 100 miles and 4000 miles per month.

I only subscribe when I travel. My last road trip was 1,600 miles. Figuring off that road trip alone that works out to $0.06 per mile for the $99 I payed. That feels worth it. The national average miles per month in the US is ~1,100. So that math would work out to $66 assuming that 100% of the driving was in FSD. Realistically, it’s not going to be that high. A lot of people (myself included) will never be able to justify $99 per month on a reoccurring basis for local driving. I understand developing the technology and lobbying for new regulations is expensive. That doesn’t change the value proposition of the service. There is a reason FSD only has something like a 15-20% take rate at its current price of $99 per month.

Because 10 cents a mile is insane, I drive 50 miles a day to work and back and do some driving on my days off. That means I’d pay $150 a month which is crazy, and then no one would ever use it on road trips because they’d be charged out the ass

They don’t. They charge by the month.

They can simply offer FSD for free by in increasing the price of $8000.

Find a real problem to worry about