FSD Upgrade Tax Free? - Check your Accounts to make sure you have FSD!

FSD Upgrade Tax Free? - Check your Accounts to make sure you have FSD!

When my Dad bought his car last year, he wanted it with FSD for $8,000, which is what it was at the time. $5,000 for EAP and $3,000 more for FSD. That's what was agreed upon when the order for an inventory car was placed. The inventory car didn't have it, so it had to be added, which Tesla sent us an invoice that reflected the $3,000 price change as the inventory car originally only had EAP. Somehow, when he actually went and took delivery of the car, they didn't include it. After digging through old paperwork, he did pay $3,000 less than what the invoice price was. With Tesla, everything is done so quickly with most of it online, so my dad didn't catch it when he went in and signed the final paperwork to take delivery.

Discovered that he didn't have FSD doing a random check of his account. So, the above is for those that think they may have gotten it, to double check your account and make sure you actually do have it. Tesla is well known for somehow missing these things if you're adding any features to an existing inventory car. (Ludicrous mode was an issue on another car Inventory car we purchased).

Anyway, unfortunately we didn't catch it when the price was $2,000, but with the recent price reduction, he lucked out and we were able to pay the same $3,000 that he was originally supposed to be charged for it. There had been some arguments on the forums about whether Tesla would charge sales tax on a software update. If you purchased it with the car, it's part of the sale price and you are taxed on it. We purchased online from California and there was no sales tax added. Confirmed that the car now has it and the credit card was charged $3,000 even. So, he ended up saving about $270 on sales tax thanks to the mistake. Had we caught it a few months ago, he could have saved over $1,000 by getting it when it was $2,000, but that's life.


Anyway, Tesla says they're raising the price of FSD very soon. Was supposed to be the 16th. Apparently that's been delayed. But wanted to bring attention to it for any and all to check their accounts, make sure they have the features they thought they have. If you're like us and don't have FSD, now's the time to take advantage of the reduced pricing and get it for $3,000. We were told there would be no discounts, despite the fact that it was supposed to be included in the original purchase. So if the price goes up, you'll be stuck paying the higher price, even if it was Tesla's mistake. In our case, we didn't pay for it. If you did actually pay for it and they simply haven't reflected it to your account, then that's different and you'll just need to call Tesla to get your account updated to reflect it. If you didn't pay for it, regardless of whether it was supposed to be included, then you get charged whatever the pricing is today, period.

Hope that helps.

reed_lewis | August 19, 2019

Not in Massachusetts. The upgrade has sales tax here. So it depends on the state.

diamonds2 | August 19, 2019

I got charged sales tax (Purchase price $2000, tax $165) in Nevada.

EVRider | August 19, 2019

I ordered FSD for both a Model S and Model 3 post delivery and paid sales tax, in Florida.

Hammonddave | August 19, 2019

Same here... in California.

Ohmster | August 19, 2019

Ditto. Taxed on each of the two at @2k a pop. California.

Bill_75D | August 20, 2019

I paid Arizona tax on the $2k battery unlock from 60 to 75.

steveg1701 | August 20, 2019

That's weird EV! I am also in Florida and when I bought FSD a couple of weeks ago there was no tax!

mpablo | August 21, 2019

California does not tax software upgrades that do not involve media such as a DVD disk, downloaded upgrades are not subject to sales or use tax as per the California Board of Tax and Fee Administration.