Tesla slashed the price of its Full Self-Driving (FSD) driver assistant software to $8,000 from $12,000 in the United States.
CEO Elon 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.
Musk earlier this month said Tesla will unveil its robotaxis on Aug. 8, after Reuters reported 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.
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.
