Elon Musk Confirms Major Change in FSD Availability
Tesla FSD Subscription is undergoing a major change, as Elon Musk confirmed that Tesla will discontinue one-time purchases of its Full Self-Driving software and move to a monthly-only model starting February 14. Instead, the advanced driver-assistance system will only be offered through a monthly subscription plan, currently priced at $99 per month in the U.S.
Until now, Tesla owners could either pay a one-time fee of $8,000 or opt for the subscription model. This shift marks a significant change in Tesla’s software strategy and has sparked widespread debate among owners and shareholders.
What Is the Tesla FSD Subscription (Supervised)?
Tesla’s Full Self-Driving (Supervised) system is designed to assist drivers with complex tasks such as:
- Lane changes on city streets
- Obeying traffic signals
- Navigation through construction zones
- Parking options
Unlike Tesla’s Autopilot, which primarily manages acceleration, braking, and lane-keeping on highways, FSD expands capabilities to urban environments. Importantly, Tesla emphasizes that FSD is not fully autonomous—drivers must remain attentive and ready to intervene at all times.
Regulatory Scrutiny: NHTSA Investigations
The U.S. National Highway Traffic Safety Administration (NHTSA) has been closely monitoring Tesla’s FSD program. In 2025, the agency opened an investigation into 2.88 million Tesla vehicles equipped with FSD after receiving more than 50 reports of traffic-safety violations and crashes.
Additionally, NHTSA is examining Tesla’s controversial “Mad Max” mode, which reportedly allows vehicles to operate more aggressively, sometimes exceeding posted speed limits. Regulators have reiterated that “the human behind the wheel is fully responsible for driving the vehicle and complying with all traffic safety laws.”
Tesla FSD Subscription: Transfers, Hardware, and Costs
The subscription-only model has raised questions among Tesla owners:
- FSD Transferability: Previously, Tesla allowed FSD transfers when purchasing a new vehicle. Owners now wonder if this option will remain available.
- Hardware Compatibility: Vehicles equipped with HW3 hardware cannot support the latest FSD V14, leaving owners uncertain about whether they can transfer their license to newer HW4-equipped models.
- Pricing Uncertainty: While the subscription is currently $99 per month, Tesla has not confirmed whether this price will remain fixed across all markets, including Canada, Mexico, Australia, New Zealand, Puerto Rico, and South Korea.
Tesla’s Luxe Package and Adoption Rates
For premium models such as the Model S, Model X, and Cybertruck, Tesla now includes a Luxe Package by default. This package bundles FSD with perks like:
- Unlimited free Supercharging
- Premium Connectivity
The inclusion of FSD in these models has influenced adoption rates. According to Tesla’s CFO Vaibhav Taneja, about 50–60% of Model S and Model X buyers opt for FSD, while adoption among Model 3 and Model Y owners remains lower, at 12–18%. Overall, only about 12% of Tesla’s fleet currently uses paid FSD.
Tesla FSD Subscription Updates: V14.2 Features and Free Trials
Tesla has been actively promoting FSD adoption:
- A 30-day free trial was offered in North America during the holiday season.
- The latest FSD V14.2 update introduced “reasoning” features, including smarter navigation during construction and improved parking options.
Tesla’s VP of Software AI, Ashok Elluswamy, highlighted these advancements as part of the company’s push toward eventually achieving unsupervised FSD.
Tesla FSD Subscription Market Impact and Global Expansion
Tesla’s decision to move FSD to a subscription-only model aligns with broader industry trends toward recurring revenue. The company has already expanded FSD availability to South Korea, in addition to existing markets such as the U.S., Canada, Mexico, Australia, New Zealand, and Puerto Rico.
Meanwhile, Tesla continues to compete aggressively in the global EV market. In December, the company overtook BYD in China’s battery-electric vehicle (BEV) revenue by $400 million, underscoring its strong international momentum.
Tesla’s shift to a subscription-only model for Full Self-Driving software represents a pivotal moment in the company’s strategy. While it may boost recurring revenue and encourage broader adoption, it also raises questions about cost stability, hardware compatibility, and regulatory oversight.
As Musk continues to push toward “solving FSD Unsupervised,” the coming months will be critical in determining whether Tesla’s bold move strengthens customer trust—or fuels further controversy.
