Tesla mentioned on Friday that it is reducing the subscription worth of its premium driver help system for purchasers within the U.S.

Marketed as its Full Self-Driving, or FSD, package deal, Tesla clients will now pay $99 per thirty days, down from $199 beforehand.

The value reduce is at odds with earlier guarantees from CEO Elon Musk, who has repeatedly mentioned that the price of FSD would solely go up as Tesla provides options and performance to the system.

“The FSD worth will proceed to rise because the software program will get nearer to full self-driving functionality with regulatory approval,” Musk wrote on Twitter, now generally known as X, on Might 18, 2020. He mentioned at that time “the worth of FSD might be someplace in extra of $100,000” per automotive.

Regardless of its model title, the corporate’s FSD possibility at present does not make Tesla autos autonomous or useful as robotaxis.

Musk has promised shareholders and clients a robotaxi for years, and has mentioned their present autos would quickly turn into self driving after an over-the-air software program replace.

He informed traders on a name in 2019 that autonomous driving would rework Tesla into an organization with a $500 billion market cap, up from round $42 billion at the moment. (The corporate is price over $500 billion at present even with out having developed an autonomous automotive.) Tesla raised over $2 billion by means of debt and fairness after the decision.

In a discover that is now proven to some drivers by means of the touchscreen shows of their vehicles, Tesla says:

The corporate makes use of sensors within the steering wheel and cabin cameras, positioned above the rearview mirror, to find out if a driver is attentive or not, and can audibly alert drivers to maintain their eyes on the street or fingers on the wheel.

In 2022, the California Division of Motor Automobiles formally accused Tesla of participating in misleading practices across the advertising of its driver help methods, together with its customary package deal Autopilot and FSD within the U.S., in keeping with filings with a state administrative company.

In the meantime, Alphabet-owned Waymo is now working business robotaxi companies in a number of U.S. cities. The corporate additionally not too long ago struck a partnership with Uber Eats for driverless meals supply. In China, Didi’s autonomous unit operates commercially in markets together with Guangzhou. Corporations together with Invoice Gates-backed Wayve within the U.Okay. and Amazon’s Zoox within the U.S. are testing robotaxis as effectively.

In a push for end-of-quarter gross sales final month, Musk mandated that every one gross sales and repair workers set up and demo FSD for purchasers earlier than handing over the keys. He wrote in an e mail to workers, “Nearly nobody really realizes how effectively (supervised) FSD really works. I do know this can decelerate the supply course of, however it’s nonetheless a tough requirement.”

After that, Tesla additionally introduced it might give away a one-month free trial of FSD to all clients in North America. Homeowners’ responses to the most recent model of FSD have been blended with some followers impressed, and plenty of safety-conscious drivers switching off the free FSD trial, viewing it as inconsistent and unsafe.

Musk additionally not too long ago promised to “unveil” a brand new devoted robotaxi on Aug. 8. Tesla unveilings are advertising occasions, and do not point out a date for the beginning of manufacturing and deliveries. For instance, Tesla unveiled a brand new model of the Roadster, and a totally electrical heavy-duty truck referred to as the Semi in 2017 and did not start Semi deliveries till December 2022. It nonetheless hasn’t produced the brand new model of the Roadster.

Tesla did not reply to a request for extra info, together with whether or not the worth reduce introduced Friday is everlasting or non permanent.

WATCH: Musk is attempting to spotlight the worth that robotaxis might convey