Tesla Cuts Vehicle Prices and Makes Full Self-Driving Cheaper

• Tesla reduces the prices of the Model S, Model X and Model Y by $2,000.
• The Full Self-Driving suite of driver assistance features is $4,000 less expensive.
• The Enhanced Autopilot system is no longer available.

Tesla’s unpredictable pricing changes strike again. This time, the EV brand is discounting three of its five consumer vehicles and also making the so-called Full Self-Driving (or FSD) driver assistance system cheaper. The significant adjustments come a day before the automaker announces its first quarter 2024 financial results.

The Model S, Model X and Model Y are now $2,000 less expensive. This means that a Model S now starts at $74,630, including documentation and destination fees. A Model X goes for $79,630, and the Model Y begins at $44,630. These figures are before any applicable tax incentives. Pricing for the Cybertruck and Model 3 remains the same.

Tesla CEO Elon Musk commented about the price adjustments on X (formerly Twitter): "Other cars change prices constantly and often by wide margins via dealer markups and manufacturer/dealer incentives. Only a fool thinks the 'MSRP' is the real price. Tesla prices must change frequently in order to match production with demand."

This is hardly the first time that Tesla has adjusted its vehicle pricing. In January, the company reduced the cost of the Model 3 and Model Y. Then, the Model S and Model X received even bigger discounts in March.

In addition to making its models less expensive, Tesla also reduced the price for buying its FSD system to $8,000, a $4,000 discount from the previous $12,000 price. At one point, buyers had to pay $15,000 for it, though it initially launched in 2019 at a $5,000 price point. The decision to reduce FSD's one-time cost came shortly after the brand cut the price of an FSD subscription from $199 per month to $99.

While FSD is now cheaper whether you get a subscription or buy the feature outright, Tesla is eliminating the availability of the Enhanced Autopilot feature. This system was a middle step between the regular Autopilot system and FSD. For $6,000, customers got technology like automatic lane changing, on- and off-ramp navigation, automatic parking, and the ability to summon a vehicle out of a parking spot.

Tesla's Q1 2024 financial results aren't available at the time of this story's publication. However, the company already announced that it built over 433,000 vehicles in this period and delivered roughly 387,000.

If you're curious about how Tesla's FSD system compares to hands-free driver assistance features from competitors, check out Edmunds testing the technology from BMW, Ford, GM and Tesla in the video below. Keep in mind that this clip is from 2023, and these features receive frequent updates.

Edmunds says

Tesla prices are volatile, so if you are already in the market for one, this might be the time to strike while the iron is hot.