Tesla CEO Elon Musk announced on Wednesday (January 13) that the company will no longer sell its Full Self-Driving (FSD) feature as a one-time purchase. Instead, starting February 14, it will be available exclusively as a $99 monthly subscription. This marks a significant shift in Tesla’s strategy, as FSD was previously marketed as an “appreciating asset” that could eventually transform vehicles into autonomous robotaxis.
For years, customers could purchase FSD upfront, with prices reaching as high as $15,000 in 2022. However, Tesla began reducing these prices in 2023, and the subscription model became more financially appealing. This change comes as Tesla faces declining sales and challenges in delivering on its autonomous driving promises.
The subscription-only model also aligns with Musk’s compensation plan, which requires growing FSD’s subscription base. As reported by The Verge, Musk’s goal is to add 10 million active subscribers, a condition tied to his pay package.
Despite the shift, Tesla’s FSD remains a Level 2 driver-assist system, requiring driver supervision. The California Department of Motor Vehicles recently criticized Tesla for misleading marketing, as the name “Full Self-Driving” implies capabilities beyond its current function.
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