Tesla to turn software service into revenue stream

June 2, 2020

Tesla has begun to indicate that it might start to grow its software offering. This could include a subscription to their self-driving system. This is not a surprise as over the last year Tesla has started charging ten dollars a month for its ‘premium connectivity’ features.

Morgan Stanley, a financial analyst for Tesla said they believe that only 27% of Tesla buyers actually buying the $7,000 self-driving package in full. Driving that price down as a subscription service would make it much more affordable for the average consumer, and in turn, create more recurring revenue for Tesla.


This being the new status quo with big tech firms has brought huge possibilities for Tesla to create more business and at a faster pace. The lower barrier to entry of their flagship feature could mean the difference between a massive jump in new customers.


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