Elon Musk, Chief Executive Officer (CEO) of Tesla, has announced that the company will discontinue selling FSD (Full Self-Driving) as a one-time purchase and will offer it only through a subscription model. This marks a bold move to convert the autonomous driving feature 100% into a subscription-based service rather than a permanent vehicle option.

According to Reuters and other outlets, Musk posted on X (formerly Twitter) on the 14th (local time), stating, “Tesla will stop selling FSD after February 14,” and added, “Going forward, FSD will only be available on a monthly subscription basis.”

Until now, Tesla has operated a dual model in which FSD was either sold for a lump-sum payment of USD 8,000 (about KRW 11 million) in the United States or offered via a monthly subscription of USD 99 (about KRW 140,000). However, starting from February 14, the one-time purchase option will be abolished and unified into a subscription model.

Musk had previously emphasized FSD as “an asset whose value will increase once purchased,” but the new subscription-only announcement effectively retracts that stance. Although he did not explicitly state the reason for turning to a subscription model, industry observers do not regard this move as a simple pricing policy change. It is expected to mark a turning point in which Tesla’s revenue model shifts completely from hardware-centric sales to that of a software-as-a-service (SaaS) company generating recurring revenue.

The Wall Street Journal also analyzed that Tesla aims “to increase recurring subscription revenue and achieve high profit levels seen broadly across the software industry.” The change is also expected to reduce the burden on consumers for a high-priced option and lower the entry barrier.

Tesla’s FSD currently provides Level 2 autonomous driving, but allows the vehicle to be driven with the driver’s hands off the steering wheel while still keeping eyes on the road. FSD is currently available in countries and regions including Korea, the United States, Canada, China, Mexico, Australia, and New Zealand. Tesla is targeting regulatory approval in Europe within this year as well.

Another factor cited in the background of Tesla’s change in FSD provision is Musk’s compensation plan. EV-focused outlet Teslarati noted that, for Tesla to realize the promised USD 1 trillion compensation package for Musk, a condition is the achievement of 10 million FSD subscriptions over the next 10 years. The current number of FSD subscribers is estimated to be in the hundreds of thousands.

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