Tesla CEO Elon Musk has announced a major change to one of the company’s most talked-about features, revealing that Full Self-Driving (FSD) will now be available only through a monthly subscription.
According to reports, Musk confirmed that starting February 14, Tesla will place FSD behind a permanent paywall. “FSD will only be available as a monthly subscription thereafter,” Musk said, a move that surprised many Tesla owners and potential buyers. Details about future pricing for new Tesla models remain unclear.
Why the change matters
Tesla’s FSD technology has long been positioned as a cornerstone of the company’s future. Musk has invested heavily in artificial intelligence to power the system, choosing to rely on cameras and software rather than LIDAR, which is used by competitors like Waymo.
Previously, customers could purchase FSD as a one-time add-on for $8,000, or subscribe for $99 per month, after earlier prices reached as high as $15,000. Shifting exclusively to a subscription model could significantly increase long-term costs for drivers.
Business strategy behind the move
The decision is widely seen as an effort to boost recurring revenue following a challenging 2025, when Tesla faced declines in both sales and overall revenue. Analysts suggest the move could test customer loyalty while setting a precedent for other automakers to adopt subscription-based features.
It remains uncertain how the change will affect future vehicles like Tesla’s Cybercab, where FSD was intended to play a central role.