Tesla CEO Elon Musk has announced that the company will be offering a one-month trial of its Full Self-Driving (FSD) technology to both existing and new customers in the United States. This move comes as Tesla faces pressure on sales and margins due to price competition and declining demand. FSD is an add-on feature priced at $12,000 that allows vehicles to navigate city streets with limited driver input.
In addition to the trial offer, Tesla staff are now required to provide demonstrations of FSD to new buyers and owners of serviced vehicles. Despite Tesla referring to its driver-assisting systems as Autopilot and Full Self-Driving, the company emphasizes that these features do not make their vehicles autonomous and still require active driver supervision. CEO Elon Musk has faced criticism for failing to deliver on his promise of achieving full autonomy, leading to regulatory scrutiny over the safety and marketing of Tesla’s driver assistant software.
Tesla’s margins have been impacted by a price war with competitors, with the company warning of lower sales growth as it focuses on producing its next-generation EV, codenamed “Redwood.” Furthermore, Tesla is facing increased regulatory scrutiny in the United States and some European countries related to its self-driving systems and other areas. In response to safety concerns, Tesla recalled nearly all of its 2 million vehicles on US roads to install new safeguards. This trial of FSD is seen as a strategic move by Tesla to boost sales and engagement with its driver-assist technology amid ongoing challenges in the electric vehicle market.
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