Shortly after reducing the price of its cars in the U.S., Tesla has now dramatically reduced the price for the Full Self-Driving (FSD) package.

The price for FSD on all variants of Tesla vehicles is now $8,000, down from $12,000, in the U.S. In Canada, which is the only other market where FSD is available, the price is now CAD $11,000.

FSD is an optional set of features that gives Tesla cars several autonomous driving options, including partially autonomous navigating to destination, as well as stopping at stop signs and traffic lights. It was released as limited beta in Oct. 2020 and expanded to all interested Tesla owners in Nov. 2022. At launch, FSD cost $5,000, but the price was gradually increased until it peaked at $15,000 in Sept. 2022.

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That's a big discount. Credit: Tesla

The price reduction for the permanent FSD activation follows a price cut for the FSD subscription option, which was recently slashed in half and is now $99 per month. The new FSD pricing actually makes a lot of sense, as it was hard to imagine someone dishing out $12,000 outright for something that can be had for a hundred bucks per month.

In addition to the price cut, Tesla also simplified the FSD options by reducing the "Enhanced Autopilot" package, which was a sort of middle ground between Tesla's "Basic Autopilot" set of features and FSD. Customers who have previously purchased Enhanced Autopilot can now upgrade to FSD for $2,000, Teslarati reported.

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FSD is no longer in beta (it's now called FSD (Supervised)), but it still doesn't really fulfil the promise in its name, which is fully autonomous driving, instead requiring the driver to be attentive and ready to take over at all times. Elon Musk keeps promising massive improvements on that front; while the system is constantly tweaked, it still appears to be far from being completely capable of driving on its own.

The changes come after a challenging couple weeks for Tesla, in which the company reported weaker-than-expected vehicle deliveries, cut more than 10 percent of its workforce, and recalled all of its Cybertrucks.