Tesla Shifts to Subscription Model for Full Self-Driving Software Starting February 14
Tesla will now offer Full Self-Driving only as a subscription, starting February 14, to boost sales and mitigate legal risks.
Tesla has sold access to Full Self-Driving at different prices over the years. Upfront prices hit $15,000 in 2022, but recently dropped to $8,000. In 2021, the subscription option began at $199 a month and later fell to $99 in 2024.
Musk often encouraged customers to pay upfront but announced the change on X. He did not explain why Tesla is stopping outright sales. Some believe this could help boost low adoption rates; only 12% of Tesla owners currently have paid for Full Self-Driving.
Switching to subscriptions might also help Musk meet goals related to a $1 trillion pay package requiring 10 million active subscriptions by late 2035.
Additionally, moving to subscriptions could lessen legal issues. Tesla promised customers that their cars would be able to drive themselves with software updates, but many still need hardware upgrades. If customers can only subscribe, it may protect Tesla from lawsuits related to these unmet promises.
Tesla’s Full Self-Driving is still considered one of the best driver-assistance systems in the country, but competitors like Rivian, Ford, and General Motors are also developing their own systems.