Key Points
- Tesla will no longer sell its Full Self-Driving (FSD) software for a one-time fee of $8,000.
- After February 14, the feature will be available only as a monthly subscription, starting at $99.
- The move is a key part of Elon Musk’s plan to make Tesla a leader in autonomous mobility.
- The change comes as Tesla faces its second consecutive year of declining vehicle sales.
Tesla is making a major change to how it sells its controversial Full Self-Driving (FSD) software. CEO Elon Musk announced on Wednesday that the company will discontinue the $8,000 one-time payment option and will offer the feature only as a monthly subscription.
“Tesla will stop selling FSD after February 14,” Musk wrote in a post on his social media platform, X. “FSD will only be available as a monthly subscription thereafter.”
The move, which sent Tesla’s stock down more than 2%, is significant for the company’s future. FSD is a key part of Musk’s plan to turn Tesla into a leader in autonomous mobility. The subscription model, which starts at $99 per month, could generate a steady stream of recurring revenue for the company. Still, it may also deter some potential buyers who prefer to own the software outright.
Tesla has not said how many people currently pay for or use the FSD software. The company has launched a limited robotaxi service in Austin, Texas. It also offers a ride-hailing service in San Francisco, but both still require a human driver.
This change in strategy comes as Tesla faces significant headwinds. The company recently reported its second consecutive annual decline in vehicle deliveries, and its fourth-quarter results were down significantly from a year ago.
By switching to a subscription model for FSD, Tesla may be seeking a new way to boost revenue and reassure investors that its self-driving ambitions remain on track.
