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Tesla FSD Goes Subscription-Only: Buyout Option Gone
14 Jan
Summary
- Tesla's Full Self-Driving will become subscription-only February 14.
- CEO Elon Musk aims for 10 million FSD subscriptions.
- Tesla's 2025 sales dropped, losing EV maker crown to BYD.
Tesla is set to make its Full Self-Driving (FSD) software available exclusively through a monthly subscription beginning February 14. This significant change removes the long-standing option for customers to buy the system outright. CEO Elon Musk has tied personal financial bonuses to achieving 10 million active FSD subscriptions.
The electric vehicle manufacturer faced considerable headwinds in 2025. Annual sales saw a decline for the second consecutive year, resulting in Tesla relinquishing its title as the world's largest EV producer to Chinese competitor BYD. Investor confidence was impacted by various factors, including political rhetoric and increased competition.
Despite these challenges, Tesla's stock saw a rebound in December. This surge followed news of successful tests involving driverless vehicles in Austin, Texas. The company also recently adjusted its naming convention for the FSD software, moving to "Full Self-Driving (Supervised)" amid scrutiny over its capabilities.
