Tesla is going all in on the Netflix model for its self-driving software — and owners we talked to have mixed feelings about the move.
On Wednesday, CEO Elon Musk announced that Tesla’s supervised Full Self-Driving software — known as FSD — will only be offered behind its $99-a-month paywall after February 14.
It’s a major shift for the electric-car maker. Tesla first began selling its self-driving software in late 2016 for $5,000, later raising the price (it’s currently $8,000) and introducing a monthly subscription option in 2021.
Now, drivers who want their car to steer, brake, and change lanes on its own will only have the option to pay $99 month to month.
Business Insider spoke with three Tesla owners about the change. Their reactions ranged from frustration to enthusiasm.
“It’s a big turnoff for me,” Leslie Snipes, an owner of a standard-range Model 3, told Business Insider. “Especially since nearly everything is now a subscription.”
Snipes said she tested FSD during a complimentary one-month trial when she bought her car in 2022. She loved the feature at the time, but a lifetime purchase cost $10,000 back then — a cost she said was too high for her family.
Now, her biggest concern is safety.
“I have much less confidence in Tesla’s self-driving,” she said. “I’ve had multiple experiences where the cameras were inoperable due to low-light conditions or obstructions like rain, which makes this shift concerning.”
She said she’d only consider paying for FSD for specific months, like when she is planning long road trips.
Scott Anderson, who just bought a Model Y in Arizona, said he never seriously considered paying thousands of dollars upfront for the software. He chose the monthly subscription and remains excited about the tech.
“My wife and I recently took a trip about 70 miles from home up into the mountains,” he said. “Our new car drove us the entire way without any interruptions.”
Anderson added that he hopes the monthly price will eventually come down as Tesla rolls out more advanced technology.
But for longtime Tesla owners who have already outright purchased the software, Musk’s announcement carries different implications.
“I find myself using FSD more and more as I drive,” Nikki Lindgren, a California Tesla owner who bought the technology years ago, told Business Insider. “The change would mostly modify if or when we replace our current Tesla.”
Lindgren said the shift to subscriptions could discourage her from buying a new Tesla unless the company allows customers to transfer previously purchased software to another vehicle.
Tesla didn’t respond to Business Insider’s request for comment.
Tesla’s ‘growing confidence’ in FSD — and why prices could go up
Tesla is facing some critical self-driving deadlines this year, including its robotaxis entering more major cities and ramping up volume production of the Cybercab.
Delivering on the promises carries enormous weight for CEO Elon Musk. His attention-grabbing $1 trillion pay package is tied in part to the company’s self-driving vision, raising the pressure to prove that its technology — and the revenue it generates — is moving closer to full autonomy.
Seth Goldstein, a Morningstar analyst who monitors Tesla, said the company’s switch to monthly subscriptions indicates “growing confidence” inside the EV maker about its technology’s momentum. He even thinks drivers might soon be able to take their eyes off the road when the car is in FSD.
But he doesn’t think that rollout will be paired with lower prices for consumers.
“Once unsupervised is released, I expect the price will rise to reflect the additional driving capabilities and we could see Tesla offer bundles that include charging and insurance in some states,” he said. “Admittedly, this just shifts the payment from one loan payment including the vehicle and FSD to two payments.”
Goldstein said he thinks most drivers will respond like Snipes, the most skeptical Tesla owner that Business Insider spoke to.
“This may lead to some consumers purchasing a Tesla as they can choose to buy FSD later or only purchase it in months when they plan to take a longer trip,” he said.
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