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Tesla Self Driving is getting so good that it will cost more.

Tesla CEO Elon Musk tweeted about Full Self Driving on Friday night.

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Elon Musk had two positive tweets for las


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investors to digest on Friday. For starters, new versions of the company’s driver assistance software are coming soon. In addition, the price of Tesla’s driver assistance features is increasing.

Tesla (ticker: TSLA) calls its driver assistance functions Full Self Driving, or FSD. The system is designed to be like a door-to-door driving service, improving safety and convenience. A driver should still be engaged all the time, but the car will do most of the work most of the time.

Tesla began rolling out better performing versions of the software in 2021, starting with its safest drivers. (Tesla may generate a safety score based on driving behavior.) New versions are released frequently. Now, Musk teased version 11 on Friday, which he said features “a lot of architectural improvements.”

Musk’s ultimate goal is to create a system that is so good that drivers don’t need to pay attention to it at all. He also hinted in interviews late last year that Tesla could achieve this level of functionality by the end of 2022. This isn’t the first time Musk has set himself a lofty goal that will be difficult. to reach.

Even though truly autonomous Tesla are not on the road by December 31, 2022, the system is making driving easier. FSD currently sells for $ 10,000 or a subscription price of $ 100 or $ 200 per month, depending on vehicle configurations.

The price is increasing, however. At $ 12,000 starting at $ 10,000. Musk says the price of subscriptions will increase when new versions of the software become widely available.

Higher prices may reflect greater confidence in the FSD system. That’s a positive thing investors can take away from Friday tweets. On the other hand, higher prices could hurt demand for FSD, but FSD sales haven’t really pulled the stock as of late.

Vehicle deliveries were. Tesla delivered more than 308,000 vehicles in the fourth quarter, a record and much better than Wall Street had expected. The stock jumped 13% in response to the news, but tougher days came as investors began to worry about rising interest rates, which hurt growth stocks more than d ‘others.

Tesla stock fell 3.5% on Friday amid the continued selling of high-value growth stocks. Shares are now down about 3% year-to-date, despite stellar delivery numbers.

the


Nasdaq Composite Index

fell 1% on Friday. the


S&P 500

fell 0.4%. the


Dow Jones Industrial Average

was down less than 5 points on Friday, closing at 36,232.

Write to Al Root at [email protected]