Why are Tesla’s self driving software sales slowing down?
Demand for Tesla’s high-profile self-driving upgrade appears to be slowing down. The take rate for the full-self driving software upgrade among Tesla car buyers declined from an estimated 37% in 2019 to about 22% in 2020 and to levels of around 12% this year so far. [1] There are likely a couple of factors driving the declining interest. Firstly, Tesla has been increasingly emphasizing its Model 3 and Y vehicles, which have a lower starting price and this could be reducing attach rates for the self-driving package, which is likely a more popular option on higher-end cars. Tesla has also bumped up pricing on the FSD package, from levels of around $5,000 in early 2019 to a more significant $10,000 currently, and this could also be hurting demand. The self-driving system has also faced some regulatory scrutiny recently relating to cases of collisions of Tesla vehicles with parked vehicles of first responders. This could also be making some customers apprehensive about opting for the system.