Tesla Ditches One-Time FSD Purchase for Subscription-Only Model

• Tesla will stop offering a one-time purchase option for its Full Self-Driving (FSD) software, moving to a subscription-only model from February 14, 2026.
• The strategic shift aims to scale recurring software revenue and is linked to CEO Elon Musk’s $1 trillion compensation plan, which includes a target of 10 million active FSD subscriptions.
• Subscription-based FSD provides predictable cash flow and aligns with Tesla's long-term roadmap for continuous software updates.
• Tesla recently updated its FSD description, clarifying that current features require active driver supervision and do not make the vehicle autonomous, amidst increased regulatory scrutiny.
• For customers, this means FSD access will depend on an active subscription, potentially increasing long-term costs compared to a one-time purchase.

Why It Matters: Tesla transitions FSD to subscription-only, aiming for recurring revenue and supporting Elon Musk's compensation goals.