The world’s largest electric vehicle (EV) maker Tesla, Inc. (TSLA) is increasing the price of its Full Self-Driving (FSD) feature to $12,000, effective from January 17, 2022. Meanwhile, TSLA shares closed down 3.5% at $1,026.96 on January 7.
FSD Feature
Tesla formally released the FSD Beta Button in the last week of September to select drivers based on their safety scores. In October 2022, the price of the FSD was raised by $2,000 for the first time.
The latest price hike was announced by CEO Elon Musk in a tweet saying, “Tesla FSD price rising to $12k on January 17.” The reason for the price hike remains unknown.
According to the Society of Automotive Engineers (SAE) standard, Tesla’s FSD feature is currently rated at Level 2, which implies that the autonomous vehicle can control both steering and speed. The level requires the driver to be attentive and take control of the car when required.
Tesla regularly updates its FSD Beta feature once every two weeks. The FSD feature comes at a subscription fee of $99 per month and can be canceled at any time. The feature includes navigation on Autopilot Beta, auto lane change, smart summon, Traffic and Stop Sign control Beta, Autosteer, and Traffic-Aware Cruise Control.
Analysts’ View
Recently, analyst Daniel Ives of Wedbush reiterated a Buy rating on the stock with a price target of $1,400, which implies 36.3% upside potential to current levels.
According to Ives, Tesla’s Giga factories in Berlin and Austin are a focal point for the Street. Ives is very optimistic about the production of Model Y, which he believes will have a massive year in 2022.
The analyst said, “Based on our analysis of Giga Austin it appears paperwork is now clearing the way for Model Y production starting over the next 7-10 days. We also believe the stamping machines for Model Y and testing is already in place and mostly completed, with paperwork now filed by Tesla to officially start key production in Austin over the next week.”
Overall, the stock has a Moderate Buy consensus rating based on 15 Buys, 9 Holds, and 5 Sells. The average Tesla price target of $1,053.73 (2.6% upside potential to current levels). Meanwhile, TSLA shares have gained 26.6% over the past year.
Blogger Opinions
According to TipRanks data, financial bloggers opinions are 73% Positive on TSLA, in line with the EV stocks sector average of 73%.
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