Tesla has announced that its Full Self‑Driving (FSD) software will no longer be sold as a one‑time purchase. Beginning February 14, 2026, the feature will be available exclusively through a $99‑per‑month subscription, a change that will affect all vehicles equipped with the necessary hardware.
The subscription model will apply to all regions where Tesla’s FSD hardware is installed, with the company confirming that existing owners who have already paid the $8,000 one‑time fee will retain full access to the software for the life of their vehicle. The new plan requires the vehicle’s onboard computer to meet the latest hardware specifications, but Tesla has stated that the current generation of Model 3, Model Y, Model S, and Model X vehicles already meet those requirements.
Tesla’s decision is part of a broader strategy to monetize its software more aggressively and to position the company as a software‑as‑a‑service (SaaS) provider. By removing the upfront cost, Tesla aims to lower the barrier to entry for new customers and accelerate adoption of its autonomous features, which are central to its planned robotaxi network. The shift also aligns with Elon Musk’s compensation plan, which rewards him for reaching 10 million active FSD subscriptions, thereby tying executive incentives directly to the new revenue stream.
The announcement was met with a modest dip in Tesla’s market value, reflecting investor uncertainty about the long‑term viability of the subscription model and potential regulatory scrutiny. Analysts noted that while the move could generate steady recurring revenue, it also introduces new challenges, such as managing customer expectations and ensuring consistent software updates across a global fleet.
Elon Musk posted on X that “Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.” He added that older vehicles with less capable computing systems may need to be retrofitted, a process he described as “painful and difficult” but necessary to support the transition.
The change signals a clear shift in Tesla’s business focus from hardware sales to software services, a move that could reshape the company’s revenue mix and competitive positioning in the rapidly evolving autonomous vehicle market.
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