Tesla FSD price cut a ‘sensible move,’ says Citi

Citi views Tesla’s (TSLA) decision on Friday to reduce the monthly subscription price of its supervised full-self driving to $99 from $199 as a “sensible move” that could drive higher installed-base software revenue and perhaps boost vehicle demand. The firm says Tesla’s new pricing aligns with its own view of the value proposition at this stage. It believes the price cut has a positive-read to advanced driver-assistance systems suppliers Mobileye (MBLY), Aptiv (APTV) and Magna (MGA). If Tesla were to experience a major uptick in full-self driving attach-rates, that could accelerate industry adoption of competing systems, most notably Mobileye SuperVision, the analyst tells investors in a research note.