A price repositioning move aimed at bolstering its position in the autonomous driving market, Tesla has announced a significant price reduction for its Full Self-Driving (FSD) software. The price has been slashed from $12,000 to $8,000 in the United States, marking a substantial decrease of one-third.

The price cut comes as CEO Elon Musk has reaffirmed his dedication to advancing self-driving technology, expressing confidence in its potential as a major revenue stream for the company. Despite previous challenges in achieving full self-driving capability, Musk remains optimistic about Tesla's progress in this arena.

Notably, Tesla's move to lower the price of FSD follows recent developments, including the company's plans to unveil its robotaxis on August 8. This decision was made in light of reports indicating a shift in focus towards autonomous vehicles rather than the previously anticipated mass-market car.

Furthermore, Tesla has adjusted its pricing strategy for FSD by reducing the monthly subscription fee from $199 to $99, aiming to make the feature more accessible to customers.

Elon Musk has long emphasised the potential value of autonomous driving technology, stating that the perceived low price of FSD in 2023, then at $15,000, would significantly elevate the worth of Tesla vehicles once they achieve full autonomy.

It is worth noting that while Tesla refers to its driver assistant features as Autopilot or FSD, the company stresses that they do not render its vehicles fully autonomous and still require active supervision from drivers.

In addition to these developments in autonomous driving technology, Tesla has been adjusting prices across its vehicle lineup in response to market dynamics. This includes price reductions of nearly $2,000 across its models in China, reflecting similar adjustments made in the United States.

Overall, Tesla's strategic moves in pricing and technology development underscore its ongoing efforts to maintain a competitive edge in the rapidly evolving electric vehicle market.

(With Reuters inputs)