This shift is linked to Musk's 2025 CEO Performance Award, which requires Tesla to reach 10 million active FSD subscriptions over the next decade. As of late 2025, only about 12% of the Tesla fleet had paid for FSD.
Currently, if one wishes to purchase FSD outright, it's $8000. Once the one-time purchase is removed, users must choose between the following subscription plans:
Monthly: $99 per month. Annual: $999 per year.
At $99 per month, it'll take approx. 7 years to match $8000 one-time purchase (assuming price remains $99 in the future)
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I think, people should have seen this coming. Everything has become subscription based. Businesses don't do 1 time sale anymore, if they want to survive. They need recurring revenue.
Overall, this news will mean hit differently for 2 parties. Tesla shareholders and Tesla Owners.
For Tesla Shareholders, it sounds like a good decision, because it will provide Tesla with predictable subscription income.
But for the Tesla owners, particularly customers who prefer ownership over recurring payments.
Tesla's FSD (Full Self Driving) feature will be subscription-only from February 14
byu/No_Turnip_1023 ininvesting
Posted by No_Turnip_1023
8 Comments
This affects new FSD software packages being sold, not existing ones, right?
This will lead to shareholders getting more diluted and they’re delusional enough to cheer it on. I trade Tesla from the short side and will continue to do so forever.
Musk still has to reckon with the fact that he remains radioactive to most of the consumers who would be in the market for an electric vehicle.
im not sure that this will work out for them. people already feel nickle and dimed and I dont know how many people will use it enough to continue paying $1k/year. I think a lot of people who would have just gotten it will go without and just get it for the month that they do a road trip…at least that is what I would do.
It was obvious this was coming, and I’m not mad about it. If you pay $999 a year, that’ll take 8 years to reach $8000. Sure, subscription prices can go up, but MOST people aren’t driving their cars for 8 years anyway, so they’d have to pay another $8000 every few years when they get a new car, so it’s actually cheaper to do a subscription. And, you can always cancel the subscription if you choose.
Also you will be able to let your car go be an autonomous taxi while you don’t use it, I’m sure Tesla will take a % of the profits but you can literally get passive income from an autonomous employee – your car. Do this enough and it may even cover the subscription cost. Depending on the metrics people may even choose to buy multiple cars, so they can have one for themselves and one to work for them.
As a shareholder it’s good too because like you said, it’s a recurring revenue stream. Car companies have difficulty actually making a profit and have to constantly sell new cars at thin margins. That’s one of the biggest criticisms of Tesla and car companies as investments in general. A subscription helps alleviate that issue. Then add on people letting their cars work for them which tesla takes a % – that’s more profit for tesla.
BYD is devouring Tesla right now.
Probably a play to pump Q1 earnings by getting a lot of people to impulse buy FSD.
>But for the Tesla owners, particularly customers who prefer ownership over recurring payments.
Way off. The monthly has become so cheap the single pay package just doesn’t make sense. No one is probably buying it
The one pay is 80 months and doesn’t transfer between owners. How many Tesla owners really think they’ll own their car 80 months or more? Plus Tesla allows you to sign up as much as you want, so most people I know only sign up before a road trip then cancel
Tesla went from $15k to $8k to $99/month. Musk has cheapened it so much no one feels like they’re saving money buying it outright