Is Hands-Free Drive Assist Going to Become a Paid Software Service?

[Murcie]

I watched the Lucid Investor Day presentation, and one specific detail regarding the future of ADAS for personal vehicles has me concerned.

While the mentions were somewhat vague, leadership discussed transitioning ADAS software to a subscription-based model, ranging from $69 to $199/month, to help drive the company toward profitability. Reading between the lines, it sounds like features that are currently available, such as Hands-Free Drive Assist and Lane Change Assist, might eventually be locked behind a monthly paywall.

Does anyone know of any documentation or fine print confirming that features on existing vehicles will remain grandfathered in and/or part of the vehicle cost? I'm hoping I'm misinterpreting the roadmap, but the shift toward "Software as a Service" (SaaS) revenue usually isn't great for the consumer.

What are your thoughts?

 

[johnse]

I don't have any specifics, but I would imagine it would be something like the Tesla model applying to new models:
* Enable all cars to be capable of the full functionality. This implies that the unit cost of the sensor suite is dropping.
* Compute power will already be there in all cars as they are consolidating ECUs
* Basic ADAS should be equivalent to industry norms... don't do a recent Tesla and put basic lane centering in the subscription.
* Lowers MSRP. No longer an expensive option... important for State-level tax incentives.

I think they are savvy enough not to try and turn those who paid full option price into subscriptions.

 

[Murcie]

I don't have any specifics, but I would imagine it would be something like the Tesla model applying to new models:
* Enable all cars to be capable of the full functionality. This implies that the unit cost of the sensor suite is dropping.
* Compute power will already be there in all cars as they are consolidating ECUs
* Basic ADAS should be equivalent to industry norms... don't do a recent Tesla and put basic lane centering in the subscription.
* Lowers MSRP. No longer an expensive option... important for State-level tax incentives.

I think they are savvy enough not to try and turn those who paid full option price into subscriptions.

I agree with you, except on the last sentence. What we paid for in the DreamDrive Pro package is the hardware which was described as “future-capable ADAS hardware”, they don’t even mention Hands-Free Drive Assist in the vehicle configurator anymore (is this new?), and only list lane-centering, which might indicate that Hands-Free software features will become paid subscription-based services.

 

[joec]

He did say the word “option” during the presentation. Subscription option.

I would not be surprised if for Cosmos it ends up being subscription only, though. Gravity and Air may keep the pay up front option.

 

[L-Dude]

If Lucid tries to charge me to use HFDA, which was a feature I paid for when I bought the car, then I will kiss Lucid goodbye for good.

 

[idiot900]

I read the presentation to say that they’d charge for capabilities beyond lane centering (i.e. L3 and better). Would be super slimy to start charging people who paid $10k (or $12k!) initially and then had to wait years for hands free to be available!

 

[tmichael]

There’s no official confirmation from Lucid Motors that existing features like Hands-Free Drive Assist will be moved behind a paywall. The discussion suggests the subscription model would more likely apply to future or higher-level ADAS features, not ones already purchased with packages like DreamDrive Pro. In short, current owners will probably keep what they paid for, but anything new could become subscription-based.

Let's take Apple Keynote, Pages and Numbers. Free - always have been, might always be.

BUT, if you want enhanced, super-duper, AI assisted Keynote, Pages and Numbers, then for only $12.99 per month (yes, they still price with "9" as the last digit - marketing developed in the gasoline industry 80 years ago!).you can have the NEW, WHIZBANG version!

I can't believe the auto industry is not going to follow the lead of many other industries and charge subscriptions for enhancements. Costco, Amazon Prime, the list goes on and on...

If Lucid doesn't create revenue by offering paid subscriptions, I would question whether management is doing everything it can for its stakeholders.

It's the new world. Fight it if you will, but I bet more people will pay for Tesla FSD on a monthly basis than the take rate was for paying thousands up front. Plus, if you don't like FSD, stop paying. No problem. Don't want to use your FSD you paid upfront for? Sorry, no refund.

it's a great time to be alive!

 

[hmp10]

I think they are savvy enough not to try and turn those who paid full option price into subscriptions.

I hope you're right, but there is a precedent for it from another EV maker.

When we bought our first Tesla in 2015 we paid for the Enhanced Autopilot option, which was their most-advanced ADAS package at the time. A couple of years later, as they were beginning to push FSD, they deactivated some of the features in our car which then showed up in the new FSD package (for which our car did not have all the necessary hardware).

It's one of growing number of reasons I will never buy another Tesla.

 

[Lmunozjr]

I’m not too happy with a dream drive. I have a 2025 GMC Sierra EV Denali with super Cruse which does a lot better and even change lanes when approaching cars. My car doesn’t do that.