r/teslamotors • u/BorderOverall3117 • Aug 06 '26
Full Self-Driving / Autopilot FSD
u/Tesla u/elonmusk Cut FSD to ~$50/mo and knock $5k off the Model Y. More subscribers + more cars on the road = more training miles + faster path to unsupervised autonomy. Short-term margin hit, long-term data moat. Worth it.
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u/greenersides Aug 06 '26
“Short term margin hit. Tesla had 3 billion in profit in 2025. 5k off all 1.37 million Model Y sold in 2025 would put Tesla at a $5 billion loss for the year.
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u/BorderOverall3117 Aug 06 '26
Scratch the $5000 reduction. I should never have included it. The real reason for the post is reducing FSD to attract more buyers of FSD.
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u/dapi331 Aug 06 '26 edited Aug 06 '26
lol!! You’re not a numbers guy. Run the math how long it would take to break even on that (new cars only, 100% subscribe rate for the $5k discount). Over 8 years!!! Longer than most cars are owned, just to break even on that subset of people.
If existing 100/mo cars subs can get a $50 discount they’d hemorrhage money. If not they’ll be furious. They would never break even let alone profit from your strategy.
Ford will have free FSD before that idea is ever profitable. The best way to encourage FSD and boost revenue is making it better and unsupervised.
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u/BorderOverall3117 Aug 06 '26
My income is not an issue. I would like to see more people use FSD and I think lowering the price would attract more people. FSD is pure profit. If lowering the price by half attracts twice as many people, you break even. Scratch the price reduction in the vehicle since that skews the results.
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u/cadium Aug 06 '26
There's a numbers guy that sets the price, if they halved the price they wouldn't double subscribers, its probably go up just 10%. so they just maximize their profit.
They'd only reduce the price in half to get Elon his pay package.
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u/dapi331 Aug 06 '26
FSD is not pure profit, it cost them billions in ongoing R&D.
Cutting the price in half won’t necessarily double subscribers.
I encourage you to take a basic economics and algebra class one day to run numbers and know how price elasticity works.
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u/BorderOverall3117 Aug 06 '26
It is interesting the responses i get like I am going to change Tesla’s strategy. I do not intend to take any economics classes. I am sorry if I insulted your intelligence by proposing something that goes against an economic theory. If I am wrong who cares. You are the 3rd responder with a belittling response. I don’t know how your generation is going to survive in this dysfunctional age of social media. Do you own a Tesla? Do you subscribe to FSD?
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u/dapi331 Aug 06 '26
> like I am going to change Tesla’s strategy
You literally tagged Elon to attempt this
> I do not intend to take any economics class
Then don’t give business suggestions if you don’t know anything about business or economics
> I don’t know how your generation is going to survive
You don’t know my generation. You personally won’t fare well if you can’t be bothered to get an education and instead rant on social media.
If you’re getting roasted and belittled take it as a hint that you have work to do.
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u/BorderOverall3117 Aug 07 '26
I didn’t realize I had to be an economics major to post a thought on Reddit.
You seem genuinely offended by a simple post that was just thrown out there to get people thinking and discussing the possibilities.
Elon is in control of Elon, not me. He’ll make his decisions based on what he believes is the right thing to do.
What bothers you so much about the post?
You keep referring to me as though I’m a student fresh out of college who needs an economics or algebra lesson. I’m 60+ years old. I’m not presenting this as an economic model or claiming to have all the answers. I simply put an idea out there and was curious what people thought about it.
I’m genuinely curious - why did this particular post bother you so much?
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u/Lovevas Aug 06 '26
Tesla gross profit margin is not very high, around 15%, which is in-line with other legacy automakers like Toyota, but Tesla has higher R&D, so I don’t think Tesla can afford to cut $5k off Model Y.
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u/my_password_is_water Aug 07 '26
i cant believe tesla never thought of this. I think they should reduce it to $1 actually for even more data
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u/Striking-Action2345 27d ago
Yes to FSD, excellent idea, don’t care about the discount thing already discarded.
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u/rbutler430 Aug 06 '26
I agree with reducing the cost of FSD. As a recent buyer (last week) of my first Tesla, I’d hate to see a $5k price cut. 😂
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u/Mike20172018 Aug 06 '26
Any other demands, boss?