Tesla raises FSD price to $15K. Could it mean they might buy a way out?
Tesla announced the price for the FSD software add-on will rise to $15K (from $12K) Sept 5. The price is amazingly high for a prepaid pre-order of a product that doesn't exist yet. Yet people only pay $4K for it in the aftermarket, and the take rate keeps going down as they raise the price, negating revenue gains.
So what does it all mean? One unusual option is that at $15K/head, Tesla could fail at producing the FSD software, but buy another company that does succeed (using LIDAR probably) and retrofit the old cars at a profit. At this price it's hard for them to lose.
I look at all the issues around this unusual product and its prices over time and where it might go in this new Forbes site article: