Tesla's Full Self-Driving Transitions to Subscription Model

Removal of the $8,000 Upfront Cost Begins February 14

Starting after mid-February, Tesla will no longer sell its Full Self-Driving (FSD) package for a one-time fee of $8,000. Instead, it will be exclusively offered as a monthly subscription service, according to Elon Musk, Tesla's CEO, via his announcement on X.

While Musk has kept quiet about the reasons behind this shift and has not set a new price for FSD, current subscription options exist at $99 monthly or a yearly rate of $999.

Potential Benefits and Buyer Considerations

For consumers, this change might provide greater flexibility, especially for those who choose to sell or replace their Tesla vehicles. New buyers can trial the FSD features without the burden of a large initial payment, which can be favorable given Tesla's historical overstatements regarding the system's capabilities.

The Reality of 'Full Self-Driving'

Despite its name, Full Self-Driving on Tesla cars does not perform autonomously as implied. Instead, it acts as an advanced driving aid requiring consistent human oversight and intervention. As a result, it does not meet the specifications for Level 3 autonomous driving—a stage where vehicles handle most driving situations without human intervention—let alone the truly autonomous Levels 4 or 5.

Since 2015, Elon Musk has promoted Tesla's self-driving potential, initially predicting full autonomy by 2018, although this has not yet come to fruition.

Controversy Over Naming and Legal Scrutiny

Tesla's branding of its systems as 'Autopilot' and 'Full Self-Driving' has faced significant criticism over potential misleading advertising from consumer protection agencies and government bodies. Despite these challenges, formal regulatory interventions have lagged.

A recent legal ruling in California found Tesla guilty of employing misrepresentative terminology in marketing its Autopilot features. Consequently, it was recommended to pause sales in the state for a month. However, Tesla has a 90-day period to contest the decision before facing action.