Tesla has announced a significant change to how customers can access its controversial Full Self-Driving (FSD) feature, moving the advanced driver-assistance system to a subscription-only model starting February 14. The decision marks a strategic shift for the electric vehicle giant as it seeks recurring revenue while facing increasing regulatory and safety scrutiny.
Until now, Tesla owners had the option to purchase Full Self-Driving outright for a one-time fee of $8,000 or subscribe to the service for $99 per month. Under the new policy, the lifetime purchase option will be discontinued, leaving monthly subscriptions as the only way to access the feature.
Tesla CEO Elon Musk confirmed the change in a post on his social media platform X but did not elaborate on the rationale behind the decision. The announcement immediately sparked debate among customers, investors, and safety advocates.
Strategic Revenue Push Tied to Executive Compensation
Industry analysts point out that the shift aligns closely with Tesla’s long-term revenue strategy. Reaching 10 million active Full Self-Driving subscriptions is reportedly one of the performance milestones tied to Musk’s executive compensation package, which shareholders approved in November.
“Moving FSD to a subscription-only model incentivizes scale rather than one-time sales,” said a technology industry analyst. “Recurring subscriptions provide predictable revenue streams and boost long-term valuation, especially as vehicle sales growth slows.”
Tesla has increasingly leaned into software-based monetization, positioning its vehicles as platforms capable of continuous feature upgrades rather than static products.
What Full Self-Driving Actually Does
Despite its name, Tesla’s Full Self-Driving system does not make vehicles fully autonomous. According to Tesla’s own description, Autopilot and FSD are advanced driver-assistance systems designed to help with steering, accelerating, and braking in response to surrounding traffic and pedestrians.
Drivers are still required to remain attentive and ready to take control at all times — a distinction that has been central to ongoing regulatory debates and consumer lawsuits.
The subscription-based Full Self-Driving feature is currently available for eligible vehicles in the United States, Canada, Mexico, Puerto Rico, Australia, and New Zealand, with rollout and functionality varying by region.
Heightened Scrutiny Over Safety Concerns
The timing of Tesla’s announcement comes as self-driving technology faces intensified scrutiny worldwide. In recent months, a series of traffic violations and crashes involving autonomous or semi-autonomous vehicles operated by Tesla, Waymo, and Lyft have raised questions about the readiness of such systems for widespread use.
In November, the National Highway Traffic Safety Administration (NHTSA) launched an investigation into Tesla’s Full Self-Driving software following reports of incidents in which vehicle behavior allegedly violated traffic safety laws.
According to the agency, the probe focuses on whether “the inputs to the dynamic driving task commanded by FSD induced vehicle behavior that violated traffic safety laws,” including improper responses to road signage, intersections, and emergency situations.
A transportation safety expert said the shift to a subscription model could complicate accountability. “When safety-critical software is monetized monthly, it raises questions about updates, incentives, and whether commercial pressure conflicts with cautious deployment,” the expert noted.
Mixed Reaction From Tesla Owners
Tesla owners have expressed mixed reactions to the announcement. Some see the subscription-only model as more affordable upfront, while others are frustrated by the removal of a permanent purchase option.
“I was planning to buy FSD outright and keep the car long-term,” said one Tesla owner. “Now I’m stuck paying forever for something that still requires me to stay fully alert.”
Others argue that the subscription model makes sense given how frequently Tesla updates the software. “If the system is constantly evolving, a subscription feels more logical than paying thousands upfront,” another owner said.
Broader Industry Implications
Tesla’s decision could influence how other automakers approach advanced driver-assistance systems. As vehicles become increasingly software-driven, the automotive industry is moving closer to a “car-as-a-service” model, where features are unlocked, updated, or removed through digital subscriptions.
“This is not just about Tesla,” said an automotive technology researcher. “It’s about the future of mobility, where the value shifts from hardware to software, and ownership becomes more fluid.”
As Tesla doubles down on subscription-based autonomy, regulators, consumers, and competitors will be watching closely to see whether the strategy accelerates innovation—or amplifies existing safety and trust concerns.
