Source: Gasgoo
Chief Executive Officer Elon Musk said that Tesla will offer a free one-month trial of its fully autonomous driving (FSD) system to U.S customers since the weak demand of customers and price competition put pressure on the company’s sales and profits.
Musk has long support the $12,000 driver assistance software as a potential source of profit for the company. However, Tesla has been grappling with regulatory and legal scrutiny over safety and marketing for years, and the company has so far failed to deliver on its promise of full autonomy.
“This week, all U.S. Tesla vehicles that support FSD will start a free one-month trial,” Musk said on the social media platform.
Image source: Tesla
Musk also sent emails to Tesla employees to demonstrate FSD to new customers and owners who maintain their vehicles. “Almost no one truly realizes how well FSD actually works (under driver’s supervision),” Musk said in the email.
According to researcher Troy Teslike, “FSD purchase rates” are declining in North America, with about 14 percent of Tesla owners buying the system in the third quarter of 2022, decrease from 53 percent in the third quarter of 2019.
Tesla launched a price war against its competitors more than a year ago, but the move also hurt its profit margins. In January, the company also warned that deliveries would be “significantly lower” this year because it is now focusing on the production of its next generation electric vehicles.
“The sharp price cuts on vehicles, combined with the sharply declining FSD purchase rate, have significantly hurt Tesla’s margins,” said Guidehouse Insights analyst Abuelsamid. Demonstrating FSD to car owners is just the latest trick Musk has come up with to boost deliveries and revenue. Musk always engaging consumers in various ways towards the end of the quarter.
