### Tesla Transitions to Subscription-Only Model for Full Self-Driving Software Tesla, under the leadership of CEO Elon Musk, has announced a significant shift in its Full Self-Driving (FSD) software offering. Starting February 14, 2026, Tesla will discontinue the option for customers to purchase the FSD software outright for a one-time fee of $8,000. Instead, the software will only be available through a monthly subscription model priced at $99. This change comes amid increasing regulatory scrutiny and aims to create a more sustainable revenue stream for the company as it navigates a challenging market environment. ### Breakdown of the Transition to Subscription Model 1. **End of One-Time Purchase**: - Tesla will stop selling the FSD software as a one-time purchase after February 14, 2026, shifting entirely to a subscription model [https://zecar.com/reviews/tesla-ending-one-time-fsd-purchases]. 2. **Monthly Subscription Details**: - The subscription will cost $99 per month, allowing users to access the FSD features without the hefty upfront cost [https://www.evshift.com/384443/teslas-full-self-driving-package-is-going-subscription-only]. 3. **Strategic Shift**: - This move aligns with Musk's broader strategy to enhance recurring revenue streams, particularly as vehicle sales have slowed. The subscription model is expected to provide Tesla with a more predictable income source [https://www.conservativeangle.com/tesla-shifts-full-self-driving-to-subscription-only-as-musk-targets-pay-package-milestones]. 4. **Regulatory Context**: - The decision comes amid ongoing safety investigations and regulatory scrutiny regarding Tesla's driver-assistance systems, which have faced criticism and legal challenges [https://www.storyboard18.com/brand-marketing/tesla-to-offer-full-self-driving-only-via-subscription-from-february-14-says-elon-musk-87632.htm]. ### Supporting Evidence and Data - **Subscription Pricing**: - The new subscription model will be priced at **$99 per month**, replacing the previous one-time payment option of **$8,000** [https://www.ibtimes.co.uk/tesla-kills-8000-fsd-one-time-buy-forces-monthly-subscription-after-february-14-1770909]. - **Market Reaction**: - The announcement has generated mixed reactions on social media, with some users expressing concerns about the increasing trend of subscription services in various sectors, while others see it as a way to increase FSD usage [https://www.conservativeangle.com/tesla-shifts-full-self-driving-to-subscription-only-as-musk-targets-pay-package-milestones]. ### Conclusion: Implications of Tesla's Subscription-Only Model In summary, Tesla's transition to a subscription-only model for its Full Self-Driving software marks a pivotal change in its business strategy. 1. **Revenue Model Shift**: The move is designed to enhance recurring revenue, which is crucial for Tesla's long-term financial health. 2. **Regulatory Compliance**: It reflects the company's response to regulatory pressures and aims to improve user accessibility to FSD technology. 3. **Market Adaptation**: This strategy aligns with broader trends in the automotive industry, where subscription services are becoming increasingly common. As Tesla navigates this new landscape, the success of the subscription model will likely depend on user adoption and the company's ability to address ongoing regulatory challenges [https://www.autoexpress.co.uk/tesla/368710/tesla-full-self-driving-tech-goes-subscription-only-us-not-uk].