Tesla FSD Free Trial Program: With Only 2% Willing to Pay, Is FSD Really That Bad?
Tesla's latest Full Self-Driving version, FSD v12.3, has been under the spotlight since its launch, acclaimed for delivering a driving experience akin to human-like autonomy and hailed as a game changer in AI driving technology. In a move to broaden its user base, Tesla also introduced a one-month free trial for the new FSD system. However, a recent YipitData report indicates a tepid subscription rate of less than 2% from the free trial program, casting doubts on market expectations regarding user uptake of the latest FSD iteration.
According to YipitData's latest figures, nearly 3,500 Tesla owners trialed the company's Full Self-Driving (FSD) service over the past month. However, only about 50 of these trials converted into FSD subscriptions or purchases, translating to a conversion rate of just under 2% as of May 5th. The data reveals a cautious approach among Tesla drivers towards paying for subscriptions to its autonomous driving technology.
It remains unclear whether the statistic of 3,500 users trialing Tesla's Full Self-Driving (FSD) service represents the entirety of Tesla's 1.8 million North American users or just a subset. Tesla's official website specifies that vehicles must be updated to software version 12.3 or higher to start the free trial, raising the question of whether the slow growth in trial numbers could be due to certain models not yet supporting the update.
This is indeed a possibility, as feedback from various Tesla owner forums indicates that many owners of vehicles with the software version 2024.8.9 have not yet received the update notification for version 12.3, though the exact number of these vehicles is unknown.
From a statistical standpoint, a trial sample of fewer than 3,500 out of nearly 1.8 million users does not provide significant statistical insight. Only by expanding the trial base can the true customer acceptance of FSD be accurately gauged. This explains why Elon Musk has required Tesla's sales staff to promote the download of the version 12.3 FSD software package at the time of new vehicle deliveries; after all, updating more vehicles to the latest version is crucial for increasing the number of users eligible for the free trial.
Tesla reduced the price of its Full Self-Driving (FSD) package from $12,000 to $8,000 and lowered its monthly subscription fee from $200 to $99. Previously, the purchase price of FSD peaked at $15,000. Tesla appears to be using price cuts as a strategy to encourage more users to try FSD, a tactic whose effectiveness remains to be seen.
Despite Tesla's aggressive pricing strategy for its Full Self-Driving (FSD) technology, more significant uptake among consumers remains a challenge, fundamentally rooted in the pace of development of the technology. While the version 12.3 of FSD has been touted as the closest yet to human-like driving experience, some users have raised concerns about its smoothness in handling finer details, such as acceleration or braking at intersections. In response, Elon Musk posted on May 8th on X that the upcoming version 12.4 would include further optimizations for these details, and tests for more advanced versions 12.5 and 12.6 also underway.
Tesla's Full Self-Driving (FSD) initiative is deeply rooted in artificial intelligence technology. The company's strong commitment to enhancing its AI capabilities is evident from its strategic financial investments. Elon Musk has recently highlighted Tesla's plan to allocate approximately $10 billion to AI training and inference activities throughout 2024. He stressed the critical nature of these investments, asserting that any company not heavily investing in AI this year is likely to fall behind in the competitive race.
Despite this aggressive investment in technology, the broader acceptance of FSD among consumers still faces significant hurdles, indicating that there is a long road ahead before universal adoption is achieved, and may also impact Tesla's stock price, especially since the market may have already factored in some of the expected progress in FSD development into its valuation.
Source: Tesla, Teslascope, YipitData, X
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
How do analysts evaluate the market?
18KFollowers
46Following
38KVisitors
Follow
RDK79 : Another anti-Tesla headline.
FF-Rise : This is misleading news, 3600 doesn't represent all car owners. If all users try it, maybe 50% of them also subscribe FSD.
Simonleiyu FF-Rise : If you can't get your hands off the steering wheel, autonomous driving doesn't have much practical significance. It only has practical significance when truly fully automated driving is achieved and you can play with your phone
73372627 : Another Bias, misleading and scam news.
Took 20 years to have autopilot on the plains, took 40 years and more to have quantum microprocessors, and now bias peoples want full autopilot on cars in 6 month?
Xiangwei Chen : A lot of people are still on v11, not able to upgrade for some reason. Next week, they will release v12.4 and this version will be pushed to most users, which is a game changer.
Joshua Tabaha 73372627 : 9
xedubx FF-Rise : And apparently, you don't understand how statistics work. 3600 is a huge sample size, so what you are claiming off top of your head is about as likely as an asteroid hitting the earth tomorrow and killing all life.
Saul d Solache : thank you
Saul d Solache : thank you
Aivern : all the tesla simps b*tching about the headline clearly cant read
View more comments...