Tesla CEO Elon Musk announced that the company's supervised Full Self-Driving software will shift to a subscription-only model at $99 per month starting after February 14, ending outright purchases. Owners expressed mixed reactions, from frustration over recurring costs and safety worries to enthusiasm for the technology's convenience. An analyst views the change as a sign of Tesla's growing confidence in its self-driving capabilities.
Tesla's decision to eliminate the option to buy its Full Self-Driving (FSD) software outright marks a significant pivot for the electric vehicle maker. Previously available for purchase since late 2016 at $5,000—later raised to $8,000—and offered as a $99 monthly subscription since 2021, FSD will now be accessible only through the recurring payment after February 14.
Business Insider interviewed three Tesla owners to gauge their responses. Leslie Snipes, who owns a standard-range Model 3 purchased in 2022, called the change "a big turnoff," citing subscription fatigue and safety concerns. She tested FSD during a free trial but declined the $10,000 purchase price at the time. "I have much less confidence in Tesla's self-driving," Snipes said, noting issues with cameras in low-light or rainy conditions. She might subscribe only for long road trips.
In contrast, Scott Anderson, a recent Model Y buyer in Arizona, opted for the subscription and remains positive. "My wife and I recently took a trip about 70 miles from home up into the mountains," he said. "Our new car drove us the entire way without any interruptions." Anderson hopes prices will decrease with technological advances.
For owners like Nikki Lindgren in California, who bought FSD years ago, the shift affects future decisions. "I find myself using FSD more and more as I drive," she told Business Insider. However, she worries it could deter upgrading unless Tesla allows transferring purchased software to new vehicles.
Morningstar analyst Seth Goldstein interprets the move as evidence of Tesla's "growing confidence" in FSD. He anticipates unsupervised driving features soon, potentially raising prices and including bundles with charging or insurance. "This may lead to some consumers purchasing a Tesla as they can choose to buy FSD later or only purchase it in months when they plan to take a longer trip," Goldstein said.
Tesla did not comment on the announcement, which aligns with broader goals like robotaxi expansion and Cybercab production amid pressure on Musk's $1 trillion pay package tied to self-driving progress.
