TL;DR
Tesla will stop selling its Full Self-Driving (Supervised) software for a one-time fee and instead require a monthly subscription starting Feb. 14, CEO Elon Musk announced on X. The change may affect adoption rates, Tesla’s legal exposure, and targets tied to Musk’s compensation plan, though pricing and the company’s motives were not explained.
What happened
Elon Musk announced on X that Tesla will discontinue outright purchases of its Full Self-Driving (Supervised) driver-assistance package and make access available only through a subscription model beginning Feb. 14. Historically Tesla offered FSD for a one-time charge — peaking at $15,000 in 2022 and more recently listed around $8,000 — while also providing a subscription option that launched at $199 per month in 2021 and was reduced to $99 per month in 2024. Musk did not explain the reason for the shift or indicate whether subscription pricing will change. Observers and Tesla executives have previously acknowledged that customer take-up of FSD has been lower than expected; the company’s CFO said in October 2025 that about 12% of customers had paid for FSD. Tesla faces regulatory and legal pressure over its marketing and product promises, and company leaders have said some vehicles will need hardware upgrades to reach future autonomous capabilities.
Why it matters
- Moves recurring revenue forward: shifting to subscription alters how Tesla recognizes and sustains FSD revenue over time.
- Could change adoption dynamics: a lower upfront cost may raise subscriber numbers compared with one-time purchases.
- Impacts executive pay goals: subscriptions are tied to a product milestone in Musk’s compensation package.
- May affect legal exposure: removing outright sales could constrain some claims tied to promises of future full autonomy.
- Competitive context: rivals and legacy automakers are expanding their own driver-assistance offerings, intensifying the market.
Key facts
- Tesla will stop selling Full Self-Driving (Supervised) as a one-time purchase starting Feb. 14, per Elon Musk.
- FSD never made cars fully autonomous and requires human supervision.
- Up-front pricing for FSD reached about $15,000 in 2022 and was recently listed at roughly $8,000.
- Tesla introduced a subscription option in 2021 at $199 per month and cut that price to $99 per month in 2024.
- Tesla CFO said in October 2025 that about 12% of customers had paid for FSD.
- One product goal tied to Musk’s compensation requires reaching 10 million active FSD subscriptions measured daily over a three-month period before late 2035.
- In December a judge found Tesla engaged in deceptive marketing around FSD and Autopilot; the California DMV issued a suspension order that was stayed and gave Tesla time to comply.
- Tesla has acknowledged that many existing vehicles (so-called Hardware 3 cars) will likely need hardware upgrades for promised autonomy.
- Rival automakers including Rivian, Ford and GM are developing or expanding their own hands-free driving and driver-assistance systems.
What to watch next
- Whether Tesla will change subscription pricing or structure after Feb. 14 — not confirmed in the source.
- If the move increases FSD subscription adoption and how quickly any uptick occurs — not confirmed in the source.
- How regulators and courts respond, and whether Tesla meets the DMV’s compliance requirements or ships software that addresses prior rulings — not confirmed in the source.
Quick glossary
- Full Self-Driving (FSD): Tesla’s branded suite of driver-assistance features that aims to automate many driving tasks but, as sold, requires human supervision and does not make a vehicle fully autonomous.
- Subscription: A recurring payment model where consumers pay periodically (usually monthly) to access software or services rather than making a one-time purchase.
- Advanced Driver Assistance Systems (ADAS): A set of car technologies that assist the driver with steering, braking, acceleration, lane keeping and other tasks to improve safety and convenience.
- Hardware 3: A specific generation of Tesla vehicle onboard computing and sensor equipment; later autonomous features may require hardware upgrades in some older cars.
Reader FAQ
When does Tesla stop selling FSD as a one-time purchase?
Elon Musk said Tesla will end outright sales of FSD starting Feb. 14.
Does FSD make a Tesla fully autonomous?
No. The package requires human supervision and does not render the car fully autonomous.
Will subscription pricing change after this announcement?
Not confirmed in the source.
Could this decision affect Elon Musk’s compensation package?
Potentially. One of the product goals tied to his pay calls for achieving 10 million active FSD subscriptions, and moving to subscription-only could influence that metric.
Tesla is removing the option to pay a one-time fee for its Full Self-Driving (Supervised) driver assistance software, CEO Elon Musk announced Wednesday. Going forward, the only way to access…
Sources
- Tesla will only offer subscriptions for Full Self-Driving (Supervised) going forward
- Full Self-Driving (Supervised) Subscriptions
- Tesla to stop selling FSD as a standalone package and …
- Tesla to offer self-driving software only on monthly basis …
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