In a move reflecting their ongoing financial struggles, Tesla has decided to reduce the subscription fee for their Full Self-Driving (FSD) driver-assist software. The company announced that the price will now be $99 per month, down from $199, a price point maintained since 2021 at least.

Tesla described the Level 2 driver-assist system as "FSD (Supervised)" in a post on X, emphasizing that drivers must remain attentive and ready to take control of the vehicle. This change comes after Tesla faced criticism for lacking proper driver monitoring and other safeguards against overreliance on the system.

Previously, Tesla charged owners $199 a month for FSD subscription, while also offering the option to purchase the system for a one-time fee of $12,000. Additionally, FSD was available for $99 as a monthly subscription to owners already equipped with Autopilot. However, Tesla has now made Autopilot a standard feature on all new car purchases, eliminating the need for a price difference.

In an effort to increase adoption, Tesla has recently begun promoting a one-month free trial of FSD and mandated that its service center employees give demo rides with FSD to all prospective buyers, as directed by Elon Musk.

While some Tesla owners praise the capabilities of FSD, others have described it as erratic and unreliable. Tesla has released several software updates to enhance its performance, with the latest version (v12) aiming to leverage "end-to-end neural nets," according to Musk.

Unlike most automakers, Tesla encourages its customers to utilize FSD on local roads, including those with traffic signals, intersections, and vulnerable road users. The system takes control of acceleration, deceleration, and maneuvering, even executing unprotected left turns, which pose challenges for automated systems. Nevertheless, drivers are still required to remain attentive and take control of the vehicle when prompted.

Tesla's driver-assist technology has attracted scrutiny from federal regulators, particularly due to 16 crashes involving Autopilot, resulting in 15 injuries and one fatality. As a result, both Autopilot and FSD have been recalled, though safety experts have deemed the accompanying software updates inadequate.

The reduction in the FSD subscription fee may be a result of Tesla's recent financial difficulties. The company experienced a decline in quarterly vehicle deliveries for the first time in years, increasing the pressure to rely on software services to boost revenue.

Last week, Tesla refuted reports of canceling the development of a more affordable electric vehicle, allegedly named the "Model 2." CEO Elon Musk dismissed the rumors as a "lie" but subsequently announced the upcoming unveiling of a "robotaxi," presumably powered by FSD technology, later this year.

In conclusion, Tesla's decision to lower the subscription fee for its Full Self-Driving software showcases their ongoing efforts to address financial challenges while aiming to attract more users. However, the system and its safety features continue to undergo scrutiny as Tesla pushes the boundaries of driver-assist technology on public roads.