What?
Credit card data reveals that only 2% of Tesla owners who tried the Full Self-Driving (FSD) package during a free trial ended up purchasing it. Despite offering a month-long trial and reducing the price of FSD from $12,000 to $8,000 or $99 per month for a subscription, the conversion rate remained low. This contradicts Elon Musk’s previous statement that prices for FSD would increase as the technology improved. The release of the new v12 version of the system, a significant advancement, was accompanied by a price cut in an attempt to boost FSD uptake.
Why Does It Matter?
Data from over 3,500 Tesla owners participating in the trial indicated that only around 50 opted for FSD subscriptions or purchases. This low conversion rate highlights skepticism among drivers towards paying for autonomous driving technology. Elon Musk attempted to encourage uptake by instructing Tesla employees to provide FSD demonstrations with every car delivery, but the value proposition of FSD remains unclear for many customers.
Opinions on FSD remain mixed, with users recognizing the improvements of the v12 version but questioning its practicality. While v12 enhances highway driving by reducing driver workload, city street performance remains questionable, leading many to believe that Autopilot may be a better option for now. The high cost of FSD further complicates its appeal, as users question whether the benefits justify the price tag.
How is It Going to Shape the Future?
The limited conversion rate from trial to purchase highlights the need for Tesla to further refine and demonstrate the value of its FSD technology. Despite ongoing advancements, including the recent v12 upgrade, convincing customers to invest in FSD remains a challenge. Moving forward, Tesla will need to address concerns around cost, functionality, and reliability to increase FSD uptake and establish itself as a leader in autonomous driving technology. The data suggests that for many Tesla owners, the current state of FSD may not yet align with their expectations or needs, leaving room for improvement and further development in the future.
Source: https://electrek.co/2024/05/14/tesla-full-self-driving-trial-users-take-rate-credit-card-data/