Tesla To Cease One-Time Sale Of FSD In Favor Of Subscription Model

• Musk warned last month that the monthly subscription price for FSD will increase as its capabilities improve.
• However, the CEO is yet to provide a definite timeline when FSD will be wholly unsupervised.
• In late January, Tesla said in a call with analysts that FSD adoption continued to improve in the fourth quarter, reaching nearly 1.1 million paid customers globally.

EV giant Tesla Inc. (TSLA) will pull back the option to purchase its full self-driving (FSD) capacity for a one-time cost of $8000 over the weekend, effectively converting the driver assistance technology into a subscription-only feature.

Until the end of Feb.14, customers can purchase FSD (Supervised) for a one-time payment of $8,000 or a subscription of $99 per month in the U.S.

However, starting Sunday, users can only subscribe to it for $99/ month. Tesla CEO Elon Musk announced the change in January.

However, Musk also warned last month that the monthly subscription price for FSD will increase as its capabilities improve. The “massive value jump is when you can be on your phone or sleeping for the entire ride,” Musk said at the time.

However, Musk is yet to provide a definite timeline for when FSD will be wholly unsupervised. Instead, he said that the company is being “very cautious” with the rollout for its customers.

However, Tesla already operates a few Model Y vehicles in Austin as robotaxis with the help of FSD and without a safety monitor.

FSD Hopes And Goals

FSD currently requires active driver supervision but Tesla is optimistic it would allow for complete vehicle autonomy in time. However, regulators have raised concerns regarding its efficacy.

In late January, Tesla said in a call with analysts that FSD adoption continued to improve in the fourth quarter, reaching nearly 1.1 million paid customers globally. Of these, nearly 70% were upfront purchases, the company said.

Following the transition to a subscription-based model, net additions to this figure will primarily be via subscription model and in the short term, will impact automotive margins, the company noted.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA stock stayed within ‘bullish’ territory over the past 24 hours, while message volume fell from ‘normal’ to ‘low’ levels.

TSLA stock has gained 18% over the past 12 months.

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