Tesla will only offer subscriptions for Full Self-Driving (Supervised) going forward

Core Viewpoint - Tesla is transitioning to a subscription-only model for its Full Self-Driving (FSD) software, eliminating the option for a one-time payment, which could significantly impact its revenue and legal standing [1][2][4]. Group 1: Business Model Changes - The decision to remove the one-time payment option for FSD marks a significant shift in Tesla's sales strategy, moving towards a monthly subscription model [2][4]. - The subscription price was initially set at $199 per month in 2021 and has been reduced to $99 per month in 2024 [4]. - This change aims to increase adoption rates, as only 12% of Tesla customers have paid for FSD as of October 2025 [5]. Group 2: Financial Implications - The subscription model could enhance Tesla's financial performance, particularly as CEO Elon Musk's compensation package is tied to achieving 10 million active FSD subscriptions by late 2035 [6]. - The shift may also help mitigate potential financial liabilities related to ongoing legal issues surrounding FSD and its marketing claims [11]. Group 3: Legal Considerations - Tesla faces legal challenges due to claims of deceptive marketing regarding FSD, with a judge ruling that the company misrepresented the capabilities of its software [10]. - By moving to a subscription model, Tesla may limit its liability in class action lawsuits related to unmet promises about the software's capabilities [11]. - The company has been criticized for suggesting that existing vehicles had all necessary hardware for full autonomy, which has not been the case [8][9]. Group 4: Competitive Landscape - Despite Tesla's advancements, competitors like Rivian, Ford, and General Motors are developing their own driver assistance systems, indicating a growing competitive landscape in the autonomous driving sector [12].