This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) will shift its Full Self-Driving software to a subscription-only model after Feb. 14, according to comments from Chief Executive Elon Musk, marking a change in how the electric-vehicle maker sells one of its most closely watched features.
Shares of Tesla dipped 0.5% on early Wednesday following the news.
Musk said Tesla will no longer offer FSD as a one-time purchase and will instead make the driver-assistance system available only through a monthly subscription. The move aligns with Tesla’s broader push toward recurring software revenue as vehicle sales growth moderates.
FSD operates as a supervised, partial automation system. It supports features such as assisted navigation, responses to traffic lights and stop signs, lane changes, and self-parking. The software currently runs in the United States, Canada, China, Mexico, Puerto Rico, Australia, and New Zealand, with plans to expand to additional regions through future updates.
Musk has repeatedly pointed to FSD as central to Tesla’s long-term strategy, alongside its robotaxi ambitions. He has said millions of Tesla vehicles already on the road could support advanced autonomy through software updates, reducing the need for new hardware.