Tesla Transitions to Subscription-Only Model for Full Self-Driving
Tesla CEO Elon Musk has announced that the company will discontinue one-time purchases of its Full Self-Driving (Supervised) system after February 14, 2026. This move will transition the feature exclusively to a monthly subscription model.
“Tesla will stop selling FSD after Feb 14,” Musk wrote on social media platform X. “FSD will only be available as a monthly subscription thereafter.”
This announcement marks a significant shift in how Tesla monetizes its autonomous driving technology.
Currently, customers can purchase FSD for a one-time fee of $8,000 or subscribe for $99 per month. Despite its name, the software still requires drivers to maintain full attention and be ready to take control at any moment. This requirement classifies it as a Level 2 driver-assistance system, not fully autonomous driving.
The move to a subscription-only model could serve multiple purposes for Tesla. It:
- Creates predictable recurring revenue streams preferred by investors
- Potentially increases accessibility by lowering the upfront cost barrier
- May provide legal flexibility as the company faces scrutiny over its marketing claims about autonomous capabilities
The decision comes as Tesla pursues ambitious goals for FSD adoption. Under Musk’s 2025 CEO Performance Award, approved by shareholders with roughly 75% support, one milestone requires reaching 10 million active FSD subscriptions by 2035. Currently, only about 12% of Tesla’s fleet uses paid FSD features, according to company statements from October.
Source: CNBC