Tesla Inc. (TSLA) to Increase FSD Pricing to $99/Month as Technology Advances
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy TSLA?
Source: Benzinga
- FSD Price Increase: Tesla CEO Elon Musk announced that the current $99/month fee for the Full Self-Driving (FSD) system will rise as technology improves, with the expectation that users will be able to use their phones or sleep during rides once unsupervised FSD is available, enhancing user experience.
- Autopilot Feature Adjustment: Tesla has scrapped the Autopilot feature in the U.S. and Canada, with all new cars now coming standard with Traffic-Aware Cruise Control, ensuring enhanced safety for users while still offering Free Supervised FSD, thereby strengthening market competitiveness.
- FSD Value Enhancement: Cathie Wood of ARK Invest stated that once Tesla achieves unsupervised autonomy, the FSD system could generate eight times more value for customers, making it an attractive option at $99/month or $999/year, which could drive long-term revenue growth for Tesla.
- Driverless Taxi Launch: Tesla has rolled out driverless Robotaxis in Austin using unsupervised FSD technology, and although there are safety concerns, Musk claimed at the World Economic Forum that Tesla has essentially solved autonomous driving, showcasing the company's technological leadership in this field.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 381.260
Low
25.28
Averages
401.93
High
600.00
Current: 381.260
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Decline: Tesla's auto deliveries fell by approximately 9% in 2025, amidst a 2% decline in the overall EV market, indicating a weakening competitive position that resulted in nearly halved profits, reflecting struggles in a soft market.
- Quarterly Sales Data: In Q1 2026, deliveries dropped 14% from the previous quarter, although there was a slight year-over-year increase, this trend suggests ongoing sales pressure for Tesla in the short term, potentially impacting investor confidence.
- Robotaxi Market Potential: Tesla anticipates that by 2029, its robotaxi business could represent around 90% of its enterprise value, with this market projected to reach $10 trillion, highlighting the strategic shift potential for Tesla's future growth.
- Production Capacity Advantage: Tesla's Austin factory can produce over 5,000 vehicles daily, with the capability to match the entire ride-hail fleet of urban Austin in about 9 days, indicating that its rapid deployment ability in the robotaxi market will provide a competitive edge.
See More
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