By: Hyunjoo Jin and Jyoti Narayan
(Reuters) – Tesla (NASDAQ:) will provide a one-month trial of its Full Self-Driving (FSD) driver assistance technology to existing and new customers in the United States, Tesla CEO Elon Musk said on the company’s website.
According to two emails confirmed by a Tesla source, Musk is also requiring Tesla employees to conduct FSD demonstrations to new customers and owners of serviced vehicles.
The move comes as Tesla’s sales and profits are under pressure due to price competition and weaker demand. FSD is a $12,000 add-on that allows vehicles to operate on city streets.
Tesla calls its driver assistance systems Autopilot and Full Self-Driving, but says these features do not make its cars autonomous and require active control by the driver. Musk has for years failed to deliver on his promise to achieve full autonomy, and Tesla’s driver assistant software is under regulatory scrutiny over safety and marketing.
“All vehicles in the US that support FSD will be tested for one month this week,” Tesla CEO Elon Musk confirmed in a post on social media platform X on Monday.
According to Tesla’s website, the trial is offered for new Tesla Model X, S, and Y sales.
Tesla’s profits have been hit by a price war with rivals that began more than a year ago. In January, Tesla warned of “noticeably lower” sales growth this year as the company focuses on production of its next-generation electric vehicle, codenamed “Redwood (NYSE:).”
The company also faces increased regulatory scrutiny over its self-driving systems and other areas in the United States and some European countries. In December, Tesla recalled nearly all of its 2 million vehicles on U.S. roads to install new safety measures.