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Tesla now offering 'FSD' driver assistance suite as a US$199-per-month subscription

Making its cars' "Full Self-Driving" capability tech a recurring charge is part of the automaker's new revenue model

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Tesla said on Saturday it has introduced an option for some customers to subscribe to its advanced driver assistance software, dubbed “Full Self-Driving capability,” for US$199 per month, instead of paying US$10,000 upfront.

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Tesla has previously said its subscription service would generate recurring revenue and expand the customer base for pricy features, including lane changing on highways and parking assistance.

But the U.S. electric carmaker reiterated on Saturday that the current features “do not make the vehicle autonomous,” adding they “require a fully attentive driver, who has their hands on the wheel.”

“FSD capability subscriptions are currently available to eligible vehicles in the United States. Check your Tesla app for updates on availability in other regions,” Tesla said on its website.

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Tesla’s CFO Zachary Kirkhorn said in April that its planned subscription service would generate recurring revenue for the company, although “there could be a period of time in which cash reduces in the near term.”

Tesla said the subscription service is available in vehicles equipped with Full Self-Driving computer 3.0 or above. It told customers that upgrading to the new hardware will cost $1,500.

Tesla has been testing its new semi-autonomous driving software for city streets and last week released “FSD Beta v9” to a limited number of customers.