Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
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Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
"Tesla will be ending one-time purchases of its Full Self-Driving (FSD) system after Valentine's Day, transitioning the feature to a monthly subscription-only model. Tesla CEO Elon Musk confirmed the upcoming update in a post on social media platform X. No more FSD one-time purchases As per Elon Musk in his post on X, "Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter." This marks a shift in how Tesla monetizes its FSD system, which can now be purchased for a one-time fee or accessed through a monthly subscription."
"FSD's subscription model has been $99 per month in the United States, while its one-time purchase option is currently priced at $8,000. FSD's one-time purchase price has swung wildly in recent years, reaching $15,000 in September 2022. At the time, FSD was proficient, but its performance was not on par with v14. This made its $15,000 upfront price a hard sell for consumers."
"Tesla's shift to a subscription-only FSD model comes amidst Musk's 2025 CEO Performance Award, which was approved by Tesla shareholders at the 2025 Annual Shareholders Meeting with roughly 75% support. Under the long-term compensation plan, Musk must achieve a series of ambitious operational milestones, including 10 million active FSD subscriptions, over the next decade for his stock awards to vest."
Tesla will end one-time purchases of its Full Self-Driving (FSD) system after Feb 14 and will offer FSD only through a monthly subscription. The U.S. subscription price has been $99 per month, while the one-time purchase option is currently $8,000 and previously rose to $15,000 in September 2022 when performance trailed v14. Moving to a subscription lowers the upfront cost and could boost adoption during peak travel periods. The shift aligns with a 2025 CEO performance award that requires achieving ambitious milestones, including 10 million active FSD subscriptions over the next decade for stock awards to vest.
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