"Manufacturers are doubling down on the idea that recurring revenue spells out value after the car leaves the factory. Rather than relying on a one-time sale of a car or parts to repair them later down the road, brands have figured out that they can instead continue to rake in money once a car leaves the lot by offering up subscriptions."
"Tesla has been at the forefront of this movement for a while. Its Full Self-Driving subscription is a $99 per month foray into what advanced driver assistance features can bring to the consumer—in fact, FSD has helped to build Tesla into the household brand that it is today."
"Autonomy subscriptions are the single biggest software monetization opportunity, one slide during a Lucid's March investor presentation read. This reflects the industry's belief in the potential of software-driven revenue streams."
Automakers are shifting towards subscription models for partial automation features, capitalizing on recurring revenue. Consumers are experiencing subscription fatigue, yet brands believe this model is the future. Tesla leads with its Full Self-Driving subscription at $99 per month, while other companies like Rivian, GM, and Ford are also introducing similar offerings. Lucid plans to launch a subscription for its automated driving features, highlighting the industry's focus on software monetization as a significant opportunity for revenue generation beyond initial car sales.
Read at insideevs.com
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