Tesla has followed through on Elon Musk, its founder and CEO’s, announcement regarding a price adjustment for its “Full Self-Driving” (FSD) software upgrade. The cost of this upgrade is now $10,000, reflecting an increase implemented after the initial phase of the new software update’s release last week. This represents a $2,000 rise from the previous price and continues a pattern of increases that began in May of the prior year.

The FSD capability has been offered as an optional enhancement to Tesla’s Autopilot driver-assist system, despite the fact that the associated functionalities were not accessible to Tesla vehicle owners until the recent beta program launch. Currently, access is limited to beta testers, but this represents the most substantial progress toward a commercially available FSD system that Musk and Tesla have achieved after years of anticipation.

It’s important to note that, despite the name, FSD does not currently meet the industry’s definition of complete, Level 4 or Level 5, autonomy as outlined by SAE International and widely adopted within the autonomous vehicle development community. Musk has characterized the system as enabling vehicles to operate autonomously, but still necessitating occasional driver oversight and intervention, while Levels 4 and 5, generally referred to as “true self-driving,” require no driver input.

Initial reports from early users suggest the technology demonstrates notable capabilities; however, deploying self-driving software for public testing without direct supervision is widely considered a potentially hazardous undertaking. Musk anticipates a broader release of the FSD technology beyond the beta phase before the end of the current year, indicating a strong belief in its operational reliability.

This price increase could be interpreted as a further indication of confidence from both Musk and the company. Musk has consistently stated that early adopters were effectively receiving a discounted rate in exchange for providing financial support during the technology’s development phase. Therefore, the price adjustment at this stage is logical. This change will also positively impact Tesla’s profit margins, which are already exceeding analyst predictions for both revenue and earnings.