Tesla Ditches One-Time FSD Purchase for Subscription-Only Model
Technology
M
Moneycontrol•16-01-2026, 13:42
Tesla Ditches One-Time FSD Purchase for Subscription-Only Model
- •Tesla will stop offering a one-time purchase option for its Full Self-Driving (FSD) software, moving to a subscription-only model from February 14, 2026.
- •The strategic shift aims to scale recurring software revenue and is linked to CEO Elon Musk’s $1 trillion compensation plan, which includes a target of 10 million active FSD subscriptions.
- •Subscription-based FSD provides predictable cash flow and aligns with Tesla's long-term roadmap for continuous software updates.
- •Tesla recently updated its FSD description, clarifying that current features require active driver supervision and do not make the vehicle autonomous, amidst increased regulatory scrutiny.
- •For customers, this means FSD access will depend on an active subscription, potentially increasing long-term costs compared to a one-time purchase.
Why It Matters: Tesla transitions FSD to subscription-only, aiming for recurring revenue and supporting Elon Musk's compensation goals.
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