Falling sales: Tesla cuts price of full self-driving software by a third to $8,000 in US

Tesla slashed the price of its Full Self-Driving (FSD) driver assistant software to $8,000 from $12,000 in the United States, as CEO Elon Musk doubles down on self-driving technology.

Musk is betting on the technology to become cash cow for the world's most valuable automaker. But he has for years failed to achieve the goal of self-driving capability, with the technology under growing regulatory and legal scrutiny.

Earlier this month, Musk said Tesla will unveil its robotaxis on August 8, after Reuters reported that Tesla had scrapped its inexpensive, mass-market car in favour of robotaxis.

According to the Tesla website, customers can now pay $8,000 for the FSD feature, or subscribe to use it for $99 a month.

Tesla recently cut the US monthly subscription price for the feature from $199, while giving every Tesla customer a month's free subscription to the software.

Price cuts in China, US

Tesla has also been cutting prices on its auto line-up in major markets. Grappling with falling sales and an intensifying price war for electric vehicles, Tesla cut prices by nearly $2,000 across its line-up in China, in line with its price cuts in the United States.

Tesla has cut prices by nearly $2,000 across its models in China, after price cuts in the United States, as it grapples with falling sales and an intensifying price war for electric vehicles (EVs), especially against cheaper Chinese EVs.

Elon Musk's EV maker cut the starting price of the revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), its official website showed on Sunday.

Tesla made similar cuts to the Model Y starting price, now 249,900 yuan, the regular version of the Model S to 684,900 yuan and the Model S Plaid to 814,900 yuan. The regular Model X now costs 724,900 yuan and its plaid variant 824,900 yuan.

The carmaker on Friday cut US prices of its Model Y, Model X and Model S vehicles by $2,000. 

Drop in deliveries

Tesla reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

The EV maker has been slow to refresh its ageing models as high interest rates have sapped consumer appetite for big-ticket items, while rivals in China, the world's largest auto market, are rolling out cheaper models.

Musk postponed a planned trip this weekend to India, where he was to have met Prime Minister Narendra Modi, citing obligations at Tesla. The trip was to have included the announcement of plans for Tesla to enter the South Asian market.

Earlier, Musk said that Tesla will lay off more than 10 percent of its global workforce as the automaker is bracing for its first annual drop in deliveries.