Elon Musk, the chief executive of Tesla, announced a major change to the company's sales strategy for its Full Self-Driving software. Starting from mid-February, Tesla will no longer offer the FSD package as a one-time purchase. Instead, customers will only be able to access the software through a monthly subscription.
End of One-Time Purchase Option
Musk made the announcement on Wednesday via a post on X. He stated clearly that Tesla will stop selling FSD after February 14. From that date forward, the software will be available exclusively as a monthly subscription. This marks a significant shift from the current model.
At present, Tesla customers in the United States have two choices. They can either buy the Full Self-Driving package for a single payment of $8,000. Alternatively, they can subscribe to it for $99 per month. The new policy removes the upfront purchase option entirely.
What Does Full Self-Driving Actually Do?
Despite its ambitious name, Full Self-Driving is not a fully autonomous system. Tesla describes it as a driver assistance feature. It requires constant supervision from the driver. Users must remain alert and ready to take control of the vehicle at any moment.
The software enables vehicles to perform several advanced functions. It can change lanes automatically, navigate through city streets, and respond to traffic lights and stop signs. Tesla's separate Autopilot system focuses primarily on highway driving. It assists with steering, acceleration, and braking within marked lanes.
Regulatory Scrutiny and Safety Concerns
This change in Tesla's sales approach comes at a time when the technology is under intense regulatory scrutiny. The safety and use of the Full Self-Driving system have been subjects of concern for authorities.
Last year, the US National Highway Traffic Safety Administration launched an investigation. The probe involves approximately 2.88 million Tesla vehicles that are equipped with the FSD software. This investigation was initiated following more than 50 reports of alleged traffic safety violations. A number of crashes have also been linked to the use of the system.
Rebranding and Internal Use
In response to these ongoing safety concerns, Tesla has updated the branding of its software. The company has added the term "Supervised" to the Full Self-Driving label in its passenger vehicles. This change emphasizes that the system does not replace a human driver and requires active monitoring.
However, Tesla does use an unsupervised version of the software in very limited, controlled environments. For example, at some of its factories, the company employs this version to move cars from assembly lines to delivery areas. This internal use is strictly confined to private property and does not involve public roads.
The move to a subscription-only model is seen as part of Tesla's broader strategy to address regulatory pressures. It also reflects the evolving nature of autonomous vehicle technology and its market adoption.
