Tesla Offers Free Trial of Full Self-Driving Technology in Response to Sales Slip and Competition

Tesla CEO Elon Musk has announced that both new and existing customers in the US will receive a one-month trial of the company’s driver-assist technology Full Self-Driving (FSD). This trial period will be accompanied by demonstrations of FSD by Tesla staff for new buyers and owners of serviced vehicles. The news was confirmed through two emails verified by a Tesla source.

The decision to offer this trial comes at a time when Tesla’s sales and margins are facing pressure from price competition and softening demand. FSD is an add-on feature priced at $12,000, which allows vehicles to navigate city streets. Despite Tesla’s branding of its driver-assisting systems as Autopilot and Full Self-Driving, the company emphasizes that these features do not make its vehicles autonomous and require active driver supervision.

Tesla has faced regulatory scrutiny for its self-driving systems in the US and some European countries. In December, the company recalled nearly all of its 2 million vehicles on US roads to implement new safety measures. Additionally, Tesla is facing increased competition from other electric vehicle manufacturers, such as Rivian and Lucid Motors, which have launched their own EV models with lower price points.

The reporting was conducted by Jyoti Narayan in Bengaluru and Hyun-Joo Jin in San Francisco, with editing by Gerry Doyle.