Tesla will stop selling its Full Self-Driving software as a one-time purchase after 14 February, forcing customers to pay $99 (£80) per month instead.
Chief Executive Elon Musk announced the change on X on Wednesday, ending the option to buy the controversial driver-assistance system outright for $8,000 (£6,480).
US regulators are currently investigating 2.88 million Tesla vehicles equipped with FSD following more than 50 reports of traffic violations and crashes. Musk offered no explanation for the policy change.
'FSD will only be available as a monthly subscription' after mid-February, Musk wrote in his post. Industry analysts were caught off guard, with several now wondering if Tesla is bracing for liability issues.
Tesla will stop selling FSD after Feb 14.
— Elon Musk (@elonmusk) January 14, 2026
FSD will only be available as a monthly subscription thereafter.
Safety Probe Looms Over Policy Shift
US National Highway Traffic Safety Administration investigators opened their probe into Tesla's FSD system last year, according to Bloomberg. Officials want to know if the system does enough to keep drivers alert and ready to take control.
Despite its name, FSD remains an assistance system, not true autonomous driving. Tesla added the term 'Supervised' to make this clear, requiring drivers to keep their hands on the wheel and watch the road at all times.
Cameras and artificial intelligence handle acceleration, braking, lane changes, and city street navigation. It recognises traffic signals and road markings. But human oversight is mandatory.
What It Means For Consumers' Wallets
Anyone who already paid $8,000 for FSD keeps it. Everyone else now faces a ticking clock.
At $99 monthly, subscribers will spend $1,188 (£961) per year. They would need to subscribe for nearly seven years before hitting that $8,000 threshold.
Tesla has been cutting FSD subscription prices for years. Lower monthly fees clearly appeal to more customers than an $8,000 upfront hit, Investing.com reported.
Software As A Service, Tesla Style
Moving to subscriptions fits Tesla's broader revenue strategy. Software subscriptions deliver predictable monthly income and lock customers into ongoing relationships.
Musk has repeatedly called self-driving technology and robotics Tesla's future growth engines. Electric vehicle sales have slowed for two consecutive years, making new revenue streams essential.
Inside some Tesla factories, an unsupervised version of FSD moves cars from assembly lines to delivery areas. That internal system operates separately from the supervised consumer version.
Basic Autopilot comes standard on every Tesla and handles highway tasks like acceleration, braking, and lane-keeping. FSD adds automated lane changes, traffic light recognition,n and city driving, Rappler noted.
Clock Ticking For Potential Buyers
Please consider the following @elonmusk : many people in Europe have purchased FSD a long time ago but they have not yet been able to use it. Could you consider allowing those people to transfer FSD to their next @Tesla ?
— Esther Rebers (@EstherRebers) January 14, 2026
Tesla owners and prospective buyers are split on the change. Monthly flexibility appeals to some. Others resent losing the purchase option entirely.
Less than four weeks remain to buy FSD outright before the window closes. Lease customers or those planning to sell within a few years might prefer monthly payments. Long-term owners lose the chance to invest once and forget about it.
Some observers suspect Tesla is preparing for stricter regulatory oversight. Subscriptions give the company more flexibility to modify or cancel the service if authorities tighten requirements.
Musk didn't say whether FSD transfers to a new Tesla when owners sell their current vehicle. Historically, the company has tied FSD to specific cars rather than owner accounts, meaning the software stays with the vehicle.
