Part 9/12:
However, this market is likely to attract fierce competition. As the technology matures and profit margins become clear, many firms will attempt to replicate Tesla's model, potentially leading to downward pressure on prices and margins over time.
Pricing Strategies and Business Models
Tesla's pricing for FSD has evolved considerably—from an initial estimate of $50,000 down to $12,000 today. The company appears to be getting closer to an optimal entry point for broad adoption. The company may choose to offer FSD for free, instead relying on a revenue-sharing model for the autonomous ride-hailing service, where Tesla takes a sizable cut of each fare.