Tesla‘s CEO Elon Musk has announced on Tuesday evening that the company will no longer be selling its Full-Self Driving (FSD) software.
Starting from February 14, customers will only be able to subscribe to the software for $99 per month.
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter,” Musk wrote on X.
It remains unclear whether it applies to all countries where FSD is currently available, which include the US, Canada, Mexico, Puerto Rico, Australia, New Zealand, and, more recently, South Korea.
It is also uncertain whether the monthly fee of the subscription will remain at the same price.
The announcement has sparked debate among Tesla owners, who now question whether FSD transfer, an option offered to those purchasing a new Tesla vehicle, will still be available.
“I’m curious what this means for everyone who has already purchased FSD outright and wants to buy another Tesla in the future. Can they still transfer FSD? Will they get some sort of credits instead?” — Tesla shareholder and content creator Sawyer Merritt wrote on X, where he has over a million followers.
Owners who have HW3 vehicles — which do not support the current FSD V14 — have also questioned if they will be able to transfer their FSD license to a new HW4 vehicle later on.
FSD in the US
Currently, Tesla allows US customers to purchase FSD for $8,000, or to subscribe to it for $99 per month.
The software is available when purchasing a Model 3 or Model Y vehicle, or to purchase/subscribe later.
If purchasing a Model X, Model S, or a Cybertruck, customers now have a standard ‘Luxe Package’ included, which has hiked the standard price of the models last year to reflect its inclusion.
The package offers the FSD software and unlimited free Supercharging and Premium Connectivity, among other features.
FSD Adoption
During Tesla‘s Annual Shareholder Meeting last November, Musk reaffirmed that the company was just “a few months away from solving FSD Unsupervised.”
At the same time, he admitted that “probably the single biggest thing” right now is to “get people aware of FSD.”
As of the third quarter, about 50 to 60% of Model S and Model X users were purchasing FSD with their vehicles, instead of subscribing or not opting for it at all — which could be driven by the introduction of the ‘Luxe Package.’
Meanwhile, the take rate for Model Y and Model 3 owners — which represent most of the fleet — is at 12 to 18%.
In the latest earnings call in October, the company’s CFO Vaibhav Taneja reiterated that “the total paid FSD customer base is still small, around 12% of our current fleet.”
In an effort to raise awareness for the software, Tesla recently launched a free 30-day trial of its software in North America, coinciding with the holiday travel period.
Last week, Tesla‘s VP of Software AI Ashok Elluswamy said that the company has begun rolling out “reasoning” features with the latest Full Self-Driving (FSD) V14.2 series.
These include “navigation route changes during construction” and “parking options.”
The V14.2 series was released in late November, about a month after the launch of FSD 14.
