1 million subscribers, representing 12% of its cumulative vehicle sales. The disclosure comes as part of Elon Musk's CEO Performance Award and is tied to a new metric that includes both upfront purchases and monthly subscriptions, excluding free trials.
9 million vehicles cumulatively, but the take rate is only about 12%, which raises questions about the effectiveness of its self-driving technology. The company is transitioning FSD to subscription-only, eliminating the upfront purchase option that previously cost up to $15,000.
This shift makes financial sense for Tesla, as it shields the company from liability and provides recurring revenue. However, the timing of the disclosure suggests that Musk's pay package demands it rather than a genuine desire to share transparency.
1 million subscribers, Tesla is more than doubling its monthly subscriptions, which may indicate a growing demand for its self-driving technology. Nevertheless, the take rate remains relatively low, sparking concerns about the feasibility of widespread adoption.
The subscription pivot also signals that Tesla has given up on convincing people to pay $15,000 upfront for a feature that still requires constant supervision. As the company continues to evolve and refine its self-driving technology, it will be interesting to see how this metric plays out in the future.
While 1.1 million subscribers is a significant number, it's concerning that only 12% of cumulative vehicle sales are paying for FSD, highlighting the need for improved efficiency and effectiveness in Tesla's self-driving technology. The shift to subscription-only also raises questions about the value proposition and customer expectations.
