Tesla moves full self-driving to subscription-only model

Tesla (TSLA) self-driving software subscription plans are changing as Tesla moves its EV Full Self-Driving system to a subscription-only model starting February 14.

Tesla will offer its full self-driving software only through a monthly subscription starting February 14, according to chief executive Elon Musk.

Musk said the change will end the option for customers to buy the automation software with a one-time payment. Tesla currently sells the feature in the United States for $8,000 upfront or as a $99 monthly subscription.

The software, known as Full Self-Driving or FSD, is designed to assist drivers but does not make vehicles fully autonomous. Drivers must stay alert and be ready to take control at any time.

Tesla now refers to the system as FSD Supervised in passenger vehicles. The wording highlights that the driver remains responsible for the car. The software can steer, brake, and accelerate, but it cannot operate on its own without human oversight.

Autopilot, a separate feature, helps cars stay in their lane and manage speed on highways. FSD adds more advanced functions. These include changing lanes, navigating city streets, and responding to traffic lights and stop signs.

The company uses an unsupervised version of the software only in limited factory settings. Tesla deploys that version to move vehicles from assembly lines to delivery areas at some of its plants. It does not offer this version to customers.

The U.S. National Highway Traffic Safety Administration opened an investigation last year into about 2.88 million Tesla vehicles equipped with FSD. The agency cited more than 50 reports of traffic safety violations and a number of crashes.

The investigation remains ongoing. Regulators are examining whether the system encourages driver inattention in certain situations.

Tesla did not provide further details on pricing or changes to existing subscriptions. The company also did not say how current owners who paid for the software upfront would be affected. The move underscores Tesla’s evolving strategy, with the Tesla self-driving software subscription playing a growing role in how the company delivers and monetizes its autonomous driving technology.