Tesla Discontinues One-Time Full Self-Driving Purchase

Tesla has stopped offering the option to purchase its Full Self-Driving (FSD) capability outright.CEO Elon Musk announced the change on X (formerly Twitter) yesterday, shifting the offering to a subscription-based model only. This means customers can no longer make a single, large payment for the feature.

Previously, Tesla allowed buyers to purchase FSD for a one-time fee of $12,000. Now, access to FSD is exclusively through a monthly subscription costing $199, or an annual subscription at $19,999. The move eliminates the possibility of owning the software permanently.

Musk didn’t provide a specific explanation for the change. However, this decision aligns with Tesla’s broader strategy of recurring revenue streams. Subscriptions provide a consistent income flow, which is often favored by investors.

The change impacts both new and existing Tesla owners. Those who haven’t purchased FSD will only have the subscription option. It remains unclear if current FSD owners will be affected or offered any transition options.

This shift also comes as Tesla continues to refine its FSD software.While not fully autonomous, FSD aims to provide advanced driver-assistance features. The subscription model may allow Tesla to more easily fund ongoing progress and improvements.

Industry analysts suggest the move could make FSD more accessible to a wider range of Tesla drivers. The lower monthly cost might be more appealing than a large upfront payment, even though the long-term cost of a subscription could exceed the original purchase price.