Tesla has announced that it will be discontinuing the option to purchase Full Self-Driving (FSD) software outright in the U.S. After February 14, the only way to access FSD will be through a subscription model, priced at $99 per month or $999 per year. This move marks a significant shift in Tesla’s strategy, as the company looks to streamline its revenue streams and focus on recurring software income.
The decision to move to a subscription-only model comes after years of fluctuating prices for the FSD software, with the one-time purchase option reaching as high as $15,000 in 2022. By transitioning to a subscription model, Tesla aims to make FSD more accessible to a wider range of customers, allowing them to activate the software only when needed and cancel at any time.
From a consumer perspective, the shift to a subscription model lowers the barrier to entry for FSD, making it easier for owners to try out the advanced driver assistance system without committing to a large upfront cost. However, some buyers may be deterred by the idea of renting software on a monthly basis rather than owning it outright.
For Tesla, the move to a subscription model provides a steady stream of software revenue as the company continues to develop and improve its autonomous driving technology. The decision to discontinue the one-time purchase option in the U.S. follows a similar move in Australia, where the ability to buy FSD outright will also be phased out on March 31, 2026.
Tesla has been steadily improving its FSD software, with CEO Elon Musk indicating that the subscription price will increase as capabilities expand, particularly with the eventual release of an unsupervised version. The company has also seen real-world success stories where FSD has helped prevent accidents and even saved a driver’s life during a medical emergency.
As Tesla continues to push towards full autonomy, the move to a subscription-only model for FSD represents a significant step in the company’s long-term strategy. For customers who have been considering purchasing FSD outright, the deadline is fast approaching, as the one-time purchase option will no longer be available after February 14.