Tesla Shifts to Subscription Model for Full Self-Driving, Discontinuing Standalone Sales

As Tesla faces declining sales and challenges with its robotaxi ambitions, CEO Elon Musk announced that the company will discontinue the standalone sale of its Full Self-Driving (FSD) feature. Starting February 14th, the Level 2 driver-assist system will only be available through a monthly subscription model.

This marks a significant change in Tesla’s approach to FSD, a software system Musk has long touted as a pathway to fully autonomous vehicles and an “appreciating asset.” Initially priced at $15,000 for a one-time purchase, the cost has dropped to $8,000 or can be accessed for $99 per month.

Musk did not provide specific reasons for this shift, which comes just weeks before Tesla is set to report its fourth-quarter and full-year 2025 earnings. The recent Q4 delivery report indicated a 15.6 percent decline in year-over-year sales. Expanding the FSD subscription base is crucial for Musk, as his recently approved compensation package hinges on adding 10 million active subscribers to unlock potential earnings worth $1 trillion.

In the past, Musk encouraged Tesla owners to invest in the FSD package, claiming that as the software advanced, prices would inevitably rise. He envisioned a future where Tesla owners could generate passive income through a fully autonomous robotaxi service. While he was correct about the price fluctuations—FSD peaked at $15,000 in 2022 before dropping to $12,000 and then $8,000—the robotaxi vision remains a work in progress. Musk has predicted that by the end of 2025, half of the U.S. population will have access to Tesla’s robotaxis. Currently, only a limited number of company-owned vehicles are operational in Austin and San Francisco, equipped with safety drivers and a kill switch for emergencies—unlike Waymo’s offerings.

Tesla has not disclosed the current number of FSD subscribers. Additionally, older Tesla models with less advanced hardware will require retrofitting to utilize FSD’s latest features, a process Musk has acknowledged will be expensive and challenging.

The company has also faced criticism regarding its marketing of FSD. California’s Department of Motor Vehicles recently determined that Tesla misleads customers by labeling the system as “Full Self-Driving” when drivers must still oversee its operation.