Tesla (TSLA) Stock: Company Transitions FSD to Subscription-Only Model After February

TLDR

• Tesla discontinues one-time $8,000 FSD purchase option effective February 14, 2026
• Monthly $99 subscription becomes the only way new customers can access Full Self-Driving features
• Existing owners who paid upfront should retain their FSD access under the new policy
• Change comes as Tesla seeks recurring revenue streams while facing two years of declining vehicle sales
• Federal safety regulators currently investigating FSD system across 2.88 million Tesla vehicles

Tesla is making a major change to how customers access its Full Self-Driving technology. CEO Elon Musk announced the company will stop selling FSD as a one-time purchase after February 14.

Tesla, Inc., TSLA

The $8,000 upfront payment option disappears next month. New buyers will only have access to the $99 monthly subscription. Musk shared the news on X but provided limited details about the transition.

Current FSD owners who paid the full amount shouldn’t worry. Their purchases will likely remain valid. The policy change targets new customers exclusively.

Strategic Pivot to Recurring Revenue

Tesla is doubling down on subscription income as vehicle sales decline. The company has seen two consecutive years of falling car sales. Musk consistently promotes autonomous driving and robotics as the company’s primary growth opportunities.

Monthly subscriptions create predictable revenue streams. The model generates ongoing payments instead of single transactions. This approach helps stabilize cash flow during slower sales periods.

FSD currently operates in seven markets. These include the United States, Canada, China, Mexico, Puerto Rico, Australia, and New Zealand. Tesla plans expansion to additional countries in future software updates.

The system offers several features for drivers. It handles semi-autonomous navigation and responds to traffic signals. Lane change assistance and self-parking capabilities are included. Despite the advanced features, human supervision remains mandatory.

Safety Concerns Under Federal Review

The National Highway Traffic Safety Administration launched an investigation in 2025. The probe covers 2.88 million Tesla vehicles equipped with FSD. Regulators received more than 50 reports of traffic violations and crashes.

Tesla now labels the system as FSD (Supervised) for consumer vehicles. The supervised designation emphasizes the need for driver attention. Factory operations use an unsupervised version to transport vehicles between production and delivery areas.

Basic Autopilot handles highway driving functions. It manages acceleration, braking, and lane keeping. FSD builds on these features with city street navigation and traffic signal recognition.

Customers with Enhanced Autopilot can upgrade to FSD for the monthly fee. Enhanced Autopilot availability varies by market. The $99 subscription price applies to U.S. customers upgrading from either Basic or Enhanced Autopilot.

Wall Street maintains a Hold rating on Tesla shares. Analysts set an average price target of $401.93. This suggests potential downside from current trading levels. The stock has delivered 12.8% gains over the trailing twelve months.

Musk provided no information about potential price changes to the monthly subscription. The $99 rate remains in effect after the February 14 cutoff. Future buyers won’t have any alternative to the subscription model.

The post Tesla (TSLA) Stock: Company Transitions FSD to Subscription-Only Model After February appeared first on Blockonomi.