Core Viewpoint - Tesla is transitioning its Full Self-Driving (FSD) software to a monthly subscription model starting February 14, moving away from a one-time payment system [1]. Group 1: Subscription Model Changes - The FSD software will now only be available as a monthly subscription, with the current subscription price set at $99 per month, while the one-time purchase price was previously $8,000 [2]. - Tesla had previously charged as much as $15,000 for the FSD technology, which is designed to assist with driving maneuvers but still requires active driver supervision [2]. Group 2: Implications for Tesla and Shareholders - The shift to a subscription model may not be well-received by all Tesla buyers, but it aligns with the company's strategic goals [3]. - A significant milestone for CEO Elon Musk's recent pay package is to achieve 10 million monthly active subscriptions for the FSD software by 2035, which could unlock a payout worth up to $1 trillion [3].
Tesla puts ‘Full Self-Driving' mode behind a monthly paywall