From Selling Cars to Selling Services: Tesla FSD Completely Shifts to Subscription Model, $99 Monthly Subscription Becomes the Only Option
Tesla announced that it will stop selling the FSD system after February 14 and fully transition to a monthly subscription model. This move eliminates the high upfront cost of $8,000 and instead attracts users with a low monthly fee of $99. In the context of sluggish sales, Tesla is accelerating its shift towards a revenue model centered on FSD and robotics technology
Tesla is abandoning its one-time sales model for its advanced driver assistance system in favor of a pure subscription model.
On the 14th, Musk announced on the X platform that Tesla will stop selling the "Full Self-Driving" (FSD) system and will completely shift to a monthly subscription service after February 14. Currently, the subscription service is priced at $99 per month.
This change will eliminate the high upfront cost of FSD, which is approximately $8,000 in the U.S. market. Despite the name "Full Self-Driving," the technology still requires human supervision and frequent intervention.
This move comes as Tesla faces sluggish sales. The company lost its position as the world's largest electric vehicle manufacturer last year, prompting Tesla to focus more on technology-driven businesses such as FSD, autonomous taxis, and robotics.
Subscription Model Lowers Purchase Barriers
Musk did not specify the exact reasons for this decision. The new policy will allow potential users to experience the system without paying the nearly $8,000 one-time fee, instead opting for a $99 monthly price. At this rate, users would need to subscribe for about 6.7 years to break even on costs compared to the original one-time purchase.
Tesla is experiencing a period of sluggish sales. In 2025, the company lost its status as the world's largest electric vehicle manufacturer. Against this backdrop, Tesla is increasing its focus on technology projects, including FSD, autonomous taxis, and robotics, in an attempt to create new revenue growth through technological services.
Although Tesla has named the system "Full Self-Driving," the technology still requires continuous monitoring and frequent intervention by the driver. This means that the system remains a driver assistance feature rather than true autonomous driving technology
