Tesla Will Stop Selling Full Self-Driving As A One-Time Package Next Month

"Tesla will stop selling Full Self-Driving as a one-time purchase in February. CEO Elon Musk confirmed on X that Tesla will begin selling FSD as a subscription-only feature. The motive isn't clear, but it could be a smart decision for both Tesla and buyers. If you've been thinking about buying Tesla's Full Self-Driving software, you've got a month to do it before its perpetual licensing turns into the tech industry's worst nightmare: a subscription."

"A subscription isn't new for FSDTesla has been offering this since late 2022. But it has historically sold the subscription alongside a lifetime unlock. That's all changing now. The industry has been moving towards subscriptions for quite some time, especially for driver-assistance technology. Other automakers like Ford and GM already do this today with the pricing models for their respective driver aids. It unlocks recurring revenue streamswhich investors love to seeand may make it easier to snag new users than a hefty one-time fee."

"I should point out that FSD is also a tough sell at its current price of $8,000. It would take 80 months to break even (a monthly subscription costs $99), and new car buyers may churn through vehicles much more quickly than that. Paying monthly may be a smart financial decision, even if it is annoying to realize that you're paying monthly for Netflix and Spotify, plus internet connectivity and Full Self-Driving in the same car. A subscription may also be the more future-proofed choice."

Tesla will end one-time purchases of Full Self-Driving (FSD) in February and move to subscription-only sales. Tesla has offered an FSD subscription since late 2022 while historically selling lifetime unlocks. The automotive industry is trending toward subscription pricing for driver-assistance features, with Ford and GM already using similar models. Subscription pricing creates recurring revenue and may attract more users than a high upfront fee. FSD costs $8,000 as a one-time purchase or about $99 per month, making break-even roughly 80 months. FSD generally does not transfer to another vehicle and remains an eyes-on driver-assist requiring full attention.

Read at insideevs.com