"For Musk, the move signals an end to his longtime portrayal of FSD as an " appreciating asset," worth buying outright now because the price will only rise as the software improves. And for Tesla, the change represents the latest decision by a tech giant to move towards a software-as-a-service (SaaS) model, in which a provider continues to host its software-handling updates, security, and maintenance-while renting it to users."
"At current rates, Tesla owners can purchase FSD-which remains primarily a driver-assistance program that requires an attentive driver at all times-for $8,000, or opt for a monthly subscription for $99. Tesla owners who have already purchased FSD will retain the software, though it is unclear whether they will be able to transfer the rights to a new vehicle, as Tesla previously made possible through limited-time promotions."
Tesla plans to stop selling Full Self-Driving software outright on February 14, making it available only via monthly subscription. The shift moves FSD from a one-time purchase option toward a software-as-a-service model hosted and updated by the company. FSD remains primarily a driver-assistance system that requires an attentive driver. Purchase price is $8,000; monthly access is $99. Existing purchasers will retain the feature, but transferability to new vehicles and future pricing remain unclear. The change sparked consumer criticism about recurring fees and reduced true ownership as companies increasingly rent software capabilities.
Read at Fortune
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