News
Tesla’s Chief executive Elon Musk has confirmed that the company will eliminate the one-time purchase option for its Full Self-Driving (FSD) package in the U.S., moving exclusively to a monthly subscription model beginning February 14. The move illustrates the brand’s decision to lean heavily in to recurring revenue streams and subscription services—think X premium, launched in October 2023. FSD is Tesla’s most advanced driver-assistance system, designed to help vehicles change lanes, navigate city streets, park themselves and respond to traffic conditions. Despite its name, the software does not make Teslas fully autonomous and still requires drivers to remain alert and ready to take control at a moment’s notice. Until now, US buyers could either pay a single fee of $8,000 or subscribe for $99 per month. The new pivot eliminates the possibility of a one-time purchase. Musk did not provide a detailed explanation for the shift, but the move aligns with Tesla’s broader strategy as the company positions itself as a technology and robotics business rather than solely an EV maker. Electric vehicles still account for roughly three-quarters of Tesla’s revenue, yet sales have softened, declining 9% in 2025 and falling 16% year over year in the fourth quarter. Earlier this year, Tesla also lost its status as the world’s largest EV seller to China’s BYD. Subscription software offers a steadier, higher-margin income stream, similar to models used across the tech industry. As of late 2025, about 12% of Teslas on the road were equipped with either monthly or lifetime FSD access, according to the company. Musk has long argued that FSD could eventually unlock enormous value by turning privately owned Teslas into autonomous robotaxis, generating income for owners while operating as part of a shared fleet. That vision, however, remains unfinished. Tesla is currently testing autonomous ride-hailing in Austin, Texas, with safety drivers onboard, however the consumer version of FSD can still disengage unexpectedly, forcing drivers to intervene at a moment’s notice. This half-baked vision of autonomy has left some early adopters feeling swindled; many consumers paid as much as $15,000 for lifetime access, only to discover that older vehicle hardware cannot support the latest software updates. Tesla has acknowledged the issue and says it intends to address it, though the specifics are hazy. Whilst the news has divided consumers, the shift to subscriptions mirrors a wider automotive trend, with rivals increasingly placing features behind paywalls. Volkswagen announced it would be offering increased horsepower as a paid add-on under a subscription scheme on its entry-level ID3 whilst BMW found itself in hot water after gate-keeping a heated seat functionality. Tesla has qualified that customers in the UK can continue to purchase autonomous capabilities as a one-time payment, as FSD has not fully been rolled out on British roads. However, consumers in the U.S. have until February 14 before Musk constructs a paywall between the customer and personal autonomy.Keep up-to-date with the latest mobility news by subscribing to MOVEMNT’s free newsletter
