Tesla to Offer Full Self-Driving Software Only via Monthly Subscription From Feb 14

Tesla will no longer sell its Full Self-Driving (FSD) software as a one-time purchase, moving to a subscription-only model beginning February 14, CEO Elon Musk announced on Wednesday. The decision marks a major strategic shift for the electric vehicle maker and effectively ends years of positioning FSD as a long-term, appreciating asset.

Until now, Tesla customers in the U.S. could either purchase FSD (Supervised) for a one-time fee of $8,000 or subscribe for $99 per month. After February 14, new customers will only be able to access the software through a monthly subscription.

What Tesla’s Full Self-Driving Actually Does

Despite its name, Tesla’s Full Self-Driving system is classified as a Level 2 driver-assistance feature, meaning drivers must remain attentive and ready to take control at all times. FSD builds on Tesla’s Autopilot system by enabling lane changes, navigation on city streets, traffic light and stop sign recognition, and limited autonomous maneuvers under supervision.

Tesla has recently added the label “FSD (Supervised)” to clarify that the system does not offer fully autonomous driving for consumer vehicles. An unsupervised version of the software is currently used only in controlled environments, such as moving vehicles within Tesla factories.

Regulatory Scrutiny and Safety Concerns

The shift comes as Tesla continues to face regulatory pressure. In 2025, the U.S. National Highway Traffic Safety Administration (NHTSA) opened an investigation into 2.88 million Tesla vehicles equipped with FSD following dozens of reports involving traffic violations and crashes.

While Tesla maintains that drivers are responsible for vehicle operation, regulators have increasingly scrutinized how the company markets its driver-assistance technology and how consumers interpret its capabilities.

Why Tesla Is Abandoning the One-Time Purchase Model

For years, Musk argued that buying FSD outright was an investment, frequently claiming the software would eventually enable robotaxi functionality and dramatically increase vehicle value. At one point, Tesla raised the price of FSD as high as $15,000.

However, falling adoption rates, repeated price cuts, and slower-than-promised progress toward autonomy have undercut that narrative. In 2024, Tesla slashed the FSD price to $8,000 and halved the subscription fee, making the upfront purchase increasingly difficult to justify.

By switching to subscriptions only, Tesla limits long-term liability tied to future autonomy promises and reframes FSD as an evolving service rather than a guaranteed technological leap.

Competitive Pressure in Driver-Assist Tech

Tesla’s move also reflects growing competition. Rivian recently launched Autonomy+, a rival system priced at $50 per month, while legacy automakers and tech firms—including NVIDIA-backed platforms—are rapidly advancing comparable driver-assistance solutions, often bundled into vehicle pricing.

Existing owners who previously purchased FSD will retain access, but future buyers will pay month-to-month for features as they exist at the time. As Tesla navigates tighter regulation and intensifying competition, the subscription-only model signals a more conservative—and arguably more realistic—approach to autonomous driving monetisation.