Elon Musk introduces subscription model for Tesla FSD in strategic move

Elon Musk has unveiled a subscription-based model for Tesla full self-driving vehicles, making a paradigm shift in his selling strategy.

The 54-year-old billionaire posted on X, Tesla Inc. will stop selling the advanced driver assistance system. Instead FSD will only be available as a monthly subscription thereafter.

The change will take effect from February 14 as announced by Tesla CEO.

Currently, the standard subscription price is $99 per month in the United States. However, the one-time purchase of FSD (supervised) costs around $8000. But, the recent announcement aims to phase-out this model.

Tesla now calls FSD software as “Supervised” as a person must always pay attention and intervene if needed.

The autopilot feature is specifically for highways, helping the car to accelerate, brake, and stay in lanes. FSD is for city streets, allowing the vehicles to obey traffic rules and change lanes.

Elon Musk did not disclose the reason behind this decision. But in recent years, Tesla has been struggling with a slump in sales. Recently, China’s BYD dethroned Tesla and bagged the title as world's top EV maker.

Resultantly, the company is prioritising its focus on initiatives revolving around FSD, robots, and robotaxis.