Tesla modifies self-driving services, and Elon Musk reveals the new prices

Tesla CEO Elon Musk announced via Twitter that the company will raise the price of its premium driver assistance package, which is marketed as Full Self-Driving Service or FSD, from $10,000 to $12,000 on Jan. 17, for US customers only.

Asked by a follower about Tesla's FSD subscription, which is currently $199 a month for most customers, Musk said, "The monthly subscription price will go up when the FSD is widely rolled out."

He added that he was excited about the new version of the FSD beta program, an invitation-only program that offers more advanced features.

Tesla does not disclose in its earnings reports how many of its customers pay for FSD up front or sign up for FSD each quarter, so it is not clear to what extent higher prices in the US could boost profit margins in the future.

The company's standard driver assistance package is marketed as a fully self-driving service, and comes standard with all of its new vehicles (Model S, Model X, Model Y and Model 3).

The service includes, but is not limited to, automatic emergency braking, forward collision warning, lane keeping and adaptive cruise control that matches the vehicle's speed to surrounding traffic.

Tesla's fully autonomous driving option, also known as FSD, is a premium package that includes Autopilot functionality. It also includes more advanced features such as automatic lane change, traffic sign recognition, and smart recall, which allows drivers to call their car from the parking lot instantly to pick it up, using their smartphone and the Tesla app as a remote control. Despite the name, it does not allow cars today to drive themselves automatically without driver intervention.

Despite the name, the option does not allow cars today to drive themselves automatically without driver intervention. Separately, there is also the FSD beta program, which includes more advanced features. Musk said in a tweet that a new version 10.9 of the FSD beta program is about to expire.

The California Department of Motor Vehicles and the National Highway Traffic Safety Administration are studying various aspects of the development of FSD technology and technologies at Tesla.

Tesla told both agencies that its technology could enhance safety-level systems or provide driver assistance but that they are unable to drive or operate the vehicle without active physical control or human monitoring.