Core Viewpoint - Tesla will transition its Full Self-Driving (FSD) software to a monthly subscription model starting February 14, moving away from outright sales [1] Group 1: Subscription Model Change - Tesla CEO Elon Musk announced that FSD will no longer be sold outright and will only be available as a subscription service [1] - This change indicates a shift in Tesla's business model regarding its FSD technology [1] Group 2: Legal and Regulatory Context - The change in FSD sales strategy may be influenced by ongoing lawsuits and investigations concerning the technology, particularly in California [2] - A judge in California ruled that Tesla was making misleading claims about the capabilities of its Autopilot and FSD features, which could impact sales in the state [2] Group 3: FSD Technology Clarification - Despite the name "Full Self-Driving," the software does not provide complete autonomy, and Tesla has labeled it as "Supervised" to indicate that drivers must remain attentive [3] - Recent updates to FSD include a "Sloth" speed option for cautious driving and enhancements to self-parking capabilities [3]

Core Insights - Tesla's vehicle deliveries fell 9% in 2025, losing its position as the top EV seller globally to Chinese competitor BYD [1] - The company reported 418,227 deliveries in Q4 2025, a 16% decrease year-over-year [1][4] - Overall deliveries for 2025 totaled 1.64 million, down 8.6% from 1.79 million in 2024 [4] Delivery Performance - Analysts had anticipated a 15% drop to 422,850 vehicles, while Wall Street expected around 426,000 [2] - Tesla's Q4 deliveries were significantly lower than expected, contributing to a decline in investor confidence [2][5] Competitive Landscape - BYD's sales surged nearly 28% to 2.26 million units, highlighting the intense competition Tesla faces from other automakers like Kia, Hyundai, and Volkswagen [4][5] - Tesla's European registrations fell 39% in the first 11 months of 2025, while BYD's registrations in Europe increased by 240% [8] Brand and Market Challenges - Tesla's brand faced challenges due to Musk's political affiliations and controversial statements, leading to protests and vandalism of vehicles [6][7] - Despite these challenges, analysts expect a rebound in European sales once Tesla's Full Self-Driving technology gains regulatory approval [7] Financial Performance - Tesla shares experienced a slight decline of 0.4% to $447.77, but ended 2025 approximately 16% higher overall [4][10] - The company deployed 14.2 gigawatt hours of battery energy storage products in Q4, up from 12.5 gigawatt hours in the previous quarter [11] Future Outlook - A $1 trillion pay plan for Musk was approved, contingent on ambitious performance targets, including delivering 20 million vehicles and 1 million humanoid robots [12]