Elon Musk announces another price hike for “full self-driving” package

A Tesla Model 3.

Enlarge / A Tesla Model 3. (credit: Smith Collection/Gado/Getty Images)

Next month, Tesla will begin charging an additional $1,000 for the “full self-driving” upgrade, CEO Elon Musk announced on Twitter on Tuesday. The option currently costs $6,000. It’s the latest in a series of price changes for a package whose main function—”full self-driving”—is still largely aspirational.

The price hike reflects Musk’s view that Tesla is less than 18 months away from delivering full self-driving technology to customers and that this capability will drastically increase the value of Tesla vehicles.

At an April event, Musk predicted that Tesla vehicles would be capable of operating as autonomous taxis by the end of 2020. In a back-of-the-envelope calculation, Musk estimated that a Tesla vehicle could generate as much as $30,000 per year in profits. If that came to pass, it would easily make even the cheapest Model 3 worth more than $100,000.

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Source: Ars Technica

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