Tesla’s Full Self-Driving Trial: A Move to Boost Sales and Margins Amid Competition and Regulatory Scrutiny

Tesla is set to offer a one-month trial of its Full Self-Driving (FSD) technology to both existing and new customers in the United States, as confirmed by CEO Elon Musk and the company’s website. This move comes amid increasing pressure on Tesla’s sales and margins due to price competition and weakening demand. FSD is an optional feature priced at $12,000 that allows vehicles to navigate city streets, although Tesla emphasizes that its driver-assist systems such as Autopilot and FSD still require active driver supervision and do not make the vehicles autonomous.

Elon Musk has faced challenges in delivering on his promise of achieving full autonomy for Tesla vehicles, and the company’s driver-assist software is currently under regulatory scrutiny regarding safety and marketing practices. Musk announced on social media that all US cars with the capability for FSD will be enabled for a one-month trial starting this week. The trial has been made available for new sales of Tesla models X, S, and Y, as per information on Tesla’s website.

Tesla’s margins have been impacted by a price war with competitors that began over a year ago. In January, Tesla warned of slower sales growth this year as it focuses on producing its next-generation EV, codenamed “Redwood.” The company is also facing increased regulatory scrutiny of its self-driving systems and other areas in the US and some European countries. In December, Tesla recalled nearly all of its 2 million vehicles on US roads to implement new safety measures.