Why Elon Musk And Tesla Are Going The Subscription Route With FSD

Group 1 - Tesla CEO Elon Musk announced that the company will stop selling its Full Self-Driving (FSD) technology at a flat rate and will transition to a monthly subscription model starting February 14 [3][4]. - The decision to move to a subscription model indicates a shift in Tesla's strategy regarding its FSD technology, potentially aiming to increase recurring revenue [3][4]. - This change comes amid increased competition in the autonomous driving market, particularly with Nvidia entering the space [6]. Group 2 - The stock market showed volatility with Dow Jones futures falling as major banks like Wells Fargo, Citigroup, and Bank of America reported their Q4 earnings [4][6]. - The overall market sentiment remains cautious as investors digest the implications of these earnings reports alongside Tesla's strategic shift [4][6].