Tesla pulls the plug on one-time purchases of FSD

Tesla has shifted its Full Self-Driving feature to a subscription model.

Over the weekend, the company removed the option to purchase the feature in the US via a one-time flat fee of $8,000.

For years, Tesla owners have been able to purchase the service with a one-time payment that would allow them to use it for the full lifespan of their vehicle. Now, the driver-assist feature is available only via a $99-per-month subscription.

Tesla CEO Elon Musk first announced in January that the change would take effect the following month. In the past, Musk has said that Teslas would serve as “appreciating assets,” suggesting owners could benefit as the software became increasingly more autonomous.

The decision to remove lifetime FSD purchases comes shortly after the carmaker stopped offering Autopilot as a free feature for new Tesla purchases. Previously, Autopilot acted as a free driver-assist feature on the expressway, while FSD was an additional paid feature for navigating city streets.

Tesla first introduced FSD in 2016, and the pricing has swung dramatically over time. In its early days, FSD cost around $5,000, later climbing to a peak of $15,000. In 2024, Tesla reduced the upfront price to $8,000. The carmaker first introduced a subscription option in 2021 for $199 per month, but the price was later lowered to $99 per month.

Musk said in a post on X last month that the carmaker will raise FSD subscription prices as its “capabilities improve.”

Tesla’s move to a more subscription-focused model reflects a broader industry trend. Under an executive performance plan approved last year, Musk’s compensation depends in part on reaching 10 million active FSD subscriptions.

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