Tesla to Make Full Self-Driving Subscription-Only Starting Feb 14 Amid Low Adoption and Regulatory Scrutiny
Elon Musk has announced that Tesla will discontinue selling its Full Self-Driving (FSD) feature as a one-time purchase, effective February 14, and will instead offer it only as a monthly subscription. The change, revealed in a post on X, marks a major shift in how Tesla’s advanced driver-assistance technology will be accessed by customers. Currently, Tesla owners can buy FSD for $8,000 upfront or subscribe for $99 per month. Musk’s decision comes amid ongoing challenges in convincing drivers to adopt the technology. In Tesla’s third-quarter earnings call in October, the company’s CFO revealed that only about 12% of Tesla’s active vehicle fleet had subscribed to FSD, with subscription revenue declining compared to the same period the previous year. The shift to a subscription model is also tied to Musk’s massive $1 trillion compensation package, approved by Tesla shareholders in November. One of the key performance milestones tied to the payout is reaching 10 million FSD subscriptions. By moving to a recurring revenue model, Tesla aims to accelerate user adoption and increase long-term revenue from the feature. Despite Musk’s frequent claims that FSD is central to Tesla’s future, the technology has drawn significant regulatory scrutiny. The National Highway Traffic Safety Administration (NHTSA) launched investigations into Tesla’s reporting of crashes involving FSD, raising concerns about transparency and safety. There have also been numerous reports of vehicles with FSD engaged running red lights, driving on the wrong side of the road, and failing to respond appropriately to traffic signals. In addition, a California judge recently ruled that Tesla’s marketing of FSD and Autopilot systems may have misled consumers, potentially leading to a ban on selling new vehicles in the state. The case highlights growing legal and public trust challenges surrounding the deployment of advanced driver-assistance systems. Tesla has not responded to requests for comment on the latest announcement. The company continues to refine FSD through over-the-air updates, but widespread adoption remains elusive. With the subscription-only transition, Tesla is betting that a steady revenue stream and continuous user engagement will help drive both technological progress and investor confidence.
