As scrutiny around driver-assistance technology continues to grow, Tesla is changing how it sells Full Self-Driving. The company’s CEO, Elon Musk, announced that starting February 14, Tesla will no longer offer its Full Self-Driving (FSD) software as a one-time purchase and will instead make it available only through a monthly subscription. The change ends the upfront payment option that has cost buyers around $8,000 and makes the $99-per-month subscription the only option for new customers to use the feature. However, the company clarified that owners who already purchased FSD outright before the cutoff date will retain access under their existing terms.
The timing of the latest move becomes even more notable as Tesla has lost its position as the world’s top electric-vehicle seller in 2025, with China’s BYD overtaking it after reporting 2.26 million EV sales globally, compared with Tesla’s 1.64 million deliveries during the year.
The latest decision shows a significant shift in the automaker’s approach to monetizing one of its most high-profile software products. For years, Full Self-Driving has been positioned as a premium add-on, with Tesla frequently adjusting its pricing as the software evolved. But now, by moving exclusively to a subscription model, the firm is effectively treating FSD as a continuously updated digital service rather than a permanent vehicle upgrade. The company believes that the subscription-only model will lower the barrier to entry for trying FSD.
It is also important to note that despite its name, Full Self-Driving does not make Tesla vehicles fully autonomous. The system is designed to assist with tasks like navigating city streets, handling lane changes, recognizing traffic lights and stop signs, and driving on highways. Tesla highlights that the software is supervised, meaning drivers must remain attentive, keep their hands on or near the steering wheel, and be ready to take over at any moment. The company has repeatedly stated that FSD is intended to assist drivers, not replace them.
The development also comes as Tesla’s driver-assistance technologies face increased attention from regulators and safety authorities. In October 2025, US auto safety regulators initiated a major investigation into about 2.9 million Tesla vehicles over concerns that the company’s Full Self-Driving (FSD) system may be violating traffic laws and behaving unsafely on public roads. Earlier, the US National Highway Traffic Safety Administration opened a preliminary investigation into about 174,000 Tesla Model Y vehicles from 2021 following reports of problems with their electronic door handles. Separately, the EV giant was also sued last year by the family of a teenager who was killed in a crash involving the Cybertruck’s door design.
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