Subscriptions
Tesla Shifts FSD to Subscription-Only After February 14, 2026, Amid California Ad Ruling, NHTSA Probe, Sales Slump, and Competition
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Tesla CEO Elon Musk announced on January 14, 2026, via X that the company will end one-time purchases of its Full Self-Driving (FSD) software after February 14, 2026, moving exclusively to subscriptions amid a California court ruling deeming FSD marketing misleading, ongoing NHTSA investigations, declining sales (1.64 million vehicles in 2025, down 9%), low adoption (12-15%), BYD overtaking as top EV maker, and rising competition from Nvidia, Rivian, and Waymo. The shift may aid Musk's trillion-dollar compensation goals requiring 10 million active FSD subscriptions.
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Tesla has disclosed that more than 1.1 million drivers worldwide are actively using its Full Self-Driving Supervised software, marking the first time the company has shared such adoption figures. This milestone, reported in the firm's Q4 2025 earnings, shows FSD penetration at about 12.4% of its global fleet of 8.9 million vehicles. The growth highlights accelerating subscriptions even as vehicle deliveries softened.
A Tesla owner faced a five-day suspension of his Full Self-Driving features due to strikes for rule violations, yet continued paying the monthly fee without interruption. Dre Medici shared his frustration on TikTok, highlighting the policy's impact on subscribers. This incident underscores ongoing debates about Tesla's billing practices for assisted driving software.