Tesla CEO Elon Musk said Wednesday that the electric vehicle maker will stop selling its Full Self-Driving (Supervised) software for a flat rate and instead will only offer it as a monthly subscription.
“Tesla will stop selling FSD after Feb 14,” Musk said in an early morning post on his social media platform X. “FSD will only be available as a monthly subscription thereafter.”
Shares of the company closed 1.8% lower on Wednesday.
FSD, which starts at $99 per month, is key to the future of the company as Musk tries to establish Tesla as a leader in autonomous mobility. The one-time price was $8,000. Tesla’s FSD requires a human driver at the wheel, ready to steer or brake at any time, and does not turn the company’s vehicles into self-driving cars.
Tesla did not immediately respond to a request for comment. The company does not regularly disclose how many people subscribe to or actively use the FSD software.
On Tesla’s third-quarter earnings call in October, CFO Vaibhav Taneja said that “the total paid FSD customer base is still small, around 12% of our current fleet.”
Tesla launched a robotaxi service with limited availability in Austin, Texas, last year, a service that includes human safety supervisors on board. Tesla also offers a ride-hailing service in San Francisco, with drivers at the wheel.
Tesla hasn’t obtained permits required in California that would allow it to test or operate autonomous vehicles without a driver at the wheel there. In December, the state’s Department of Motor Vehicles found Tesla has engaged in false advertising around the capabilities of its “self-driving” systems, and the company is also facing a consumer class action suit on the matter that’s now on appeal.
Tesla is way behind Alphabet’s Waymo, the leading robotaxi business in the U.S. In December, Waymo reached more than 450,000 weekly paid rides, according to an investor letter from Tiger Global seen by CNBC.
Waymo operates in Austin, the San Francisco Bay Area area, Phoenix, Atlanta and Los Angeles and is targeting expansion to several more cities in 2026, including overseas in London and Tokyo.
Tesla reported fourth-quarter delivery and production numbers at the beginning of January, wrapping the second-straight annual drop for the EV maker. Fourth-quarter deliveries of 418,227 were about 16% lower than a year ago, and production numbers were down 5.5% from a year earlier.
Tesla reports fourth-quarter earnings on Jan. 28.
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