WASHINGTON (dpa-AFX) - Tesla (TSLA) is eliminating the one-time purchase option for its Full Self-Driving 'Supervised' software and will instead offer the feature exclusively through a monthly subscription, according to Chief Executive Elon Musk.
Musk said the company will stop selling FSD outright after February 14, after which customers will only be able to access the software through a recurring plan that currently starts at $99 a month. The announcement weighed on the stock, which fell by more than 2 percent following the news.
The driver-assistance system has long been central to Musk's strategy of positioning Tesla as a leader in autonomous transport, even as the company trails Alphabet's Waymo in fully driverless operations. Tesla does not disclose how many customers use or pay for FSD.
Tesla rolled out a limited robotaxi service in Austin last year and offers ride-hailing in San Francisco, though vehicles there still operate with a safety driver behind the wheel.
Waymo, by contrast, reported more than 450,000 paid rides per week in December, based on information shared with investors. Its service already runs in cities including Austin, San Francisco, Phoenix, Atlanta and Los Angeles, with further expansion planned for 2026.
The shift to subscriptions comes after a weak end to the year for Tesla. The company reported fourth-quarter deliveries of 418,227 vehicles, down about 16 percent from a year earlier, while production dropped 5.5 percent. Tesla is due to report its quarterly earnings on January 28.
TSLA currently trades at $435.18, or 2.69% lower on the NasdaqGS.
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