Elon Musk announced Tesla It is about to stop selling its Fully Self-Driving (FSD) software, leaving consumers with monthly payments as their only option, sparking mixed reactions online and raising more questions about the tech giant’s move to subscription services.
Tesla CEO Musk, shared this news Wednesday at X. Starting February 14th, FSD will no longer be available for direct purchase, and thereafter the software will be “monthly subscription only.”
For Musk, the move marks a milestone in his long-standing description of FSD as “asset appreciation“It’s worth buying now, because as the software improves, the price will only go up. For Tesla, the change represents the latest decision by a tech giant to move toward a software-as-a-service (SaaS) model, in which providers continue to host its software and handle updates, security and maintenance while renting it out to users. But for those interested in Tesla and those who already own Musk’s cars, the move is a reminder of how difficult it is to actually own something in today’s economy.
“Imagine buying a self-driving car and still having to pay a monthly subscription fee to actually drive it,” one user wrote In response to Musk’s statement.
“You will have nothing and be happy.”
At current prices, Tesla owners can purchase FSD for $8,000 (the feature is still primarily a driver assistance program that requires the driver to stay focused at all times), or opt for a monthly subscription of $99. Tesla owners who have already purchased FSD will keep the software, but it is unclear whether they will be able to transfer the rights to their new vehicles, as Tesla previously announced via Limited time promotion. Tesla did not immediately respond wealthComment was requested on whether rates will remain the same after February 14 or whether they will be transferable between vehicles. At current monthly price points, it would take drivers about seven years to match the outright purchase costs.
Tesla has gradually increased the purchase price of FSD from US$5,000 at launch to the most expensive point of US$15,000 in 2022. Musk described the price increase as evidence that FSD is a sound investment for consumers to jump in early, although the upfront cost of the software is set to drop to $8,000 in 2024, around the same time Tesla is lowering its U.S. monthly fee from $199 to $99.
The price cut comes after reports of low conversion rates among Tesla drivers choosing to upgrade to FSD. While Tesla does not proactively disclose the percentage of its customer base that uses FSD, Chief Financial Officer Vaibhav Taneja said the percentage is “still small, about 12% of our current fleet.” October Earnings Conference Call.
“You never really own your electric car”
Many responses to Musk’s statement lamented the prevalence of subscription-based features that car companies now retain.
“People want to own their stuff outright and not be beholden to it forever,” one user wrote.
“You will never truly own your electric car because it will be useless without software that you can never remove, replace or modify,” explain Another, then added a piece of advice: “Stick to internal combustion engines and use as few computers as possible.”
Criticism of new cars’ reliance on software has grown recently, to the point where the industry refers to electric vehicles as “Smartphone on wheels“. Tesla isn’t the only offender, as in August, Volkswagen posted a new features Adding more horsepower to some of its electric vehicles sells for $22.50 per month. GM is also offering Super Cruise, a subscription-based hands-free driving feature on select highways. The service launched in 2017 and offers a three-year trial, followed by a $25 monthly fee. Super Cruise has grown into a major moneymaker for General Motors, and late last year expected By 2025, the active user base will reach 600,000 and revenue will exceed $200 million.
Software updates and subscription fees in cars can start to frustrate users. Data from S&P Global shows that 68% of consumers said they were willing to pay for car connectivity services last year opinion polldown from 86% in 2024.
While electric vehicles tend to be the most software-heavy, all cars today rely on connected services in some way, regardless of their powertrain. Most modern cars support Up to a million lines of codeand frequent updates can quickly lead to incompatibilities in some features. In 2022, as operators upgrade their telecom infrastructure from 3G, many cars made in China toyotaChrysler and Jeep vehicles (including battery and gas-powered models) permanently lose the ability to automatically notify first responders in the event of a collision.