Tesla to Increase FSD Subscription Prices as Company Phases Out Autopilot Feature
Tesla CEO Elon Musk announced the company will increase Full Self-Driving subscription prices beyond the current $99 monthly rate as capabilities improve, while simultaneously phasing out the standard Autopilot feature in the US and Canada. With only 12% of Tesla owners currently using FSD and the elimination of the $8,000 one-time purchase option after February 2026, Tesla is strategically positioning monthly subscriptions as the primary access method for advanced driver assistance features.
*this image is generated using AI for illustrative purposes only.
Tesla CEO Elon Musk announced on Friday that the electric vehicle manufacturer will increase subscription prices for its Full Self-Driving (FSD) software as the technology advances beyond its current capabilities. The announcement, made via X (formerly Twitter), signals a significant shift in Tesla's pricing strategy for autonomous driving features.
FSD Pricing Changes and Timeline
Musk indicated that the current $99 monthly subscription rate for supervised FSD will rise as the system's capabilities improve. The company has also set a deadline for its current pricing structure, planning to eliminate the one-time $8,000 purchase option after February 14, 2026.
| Current Options: | Details |
|---|---|
| Monthly Subscription: | $99 per month |
| One-time Purchase: | $8,000 (until February 14, 2026) |
| Future Access: | Monthly subscription only |
Autopilot Feature Phase-Out
Simultaneously, Tesla has begun phasing out its Autopilot feature in the United States and Canada. The basic driver-assistance system, which previously included lane-keeping and semi-automated steering capabilities, came standard with Tesla vehicles. The company now offers only Traffic-Aware Cruise Control as standard equipment, according to Tesla's website.
Strategic Business Implications
The removal of Autopilot leaves FSD as Tesla's primary driver assistance option, supporting the company's broader strategy to increase subscription adoption. Current adoption rates remain modest, with Tesla's CFO reporting in October that approximately 12% of Tesla owners pay for the assisted-driving feature.
FSD subscriptions represent a critical component of Musk's compensation package, with reaching 10 million active Full Self-Driving subscriptions serving as a major milestone required to unlock the full $1 trillion payout.
Technology Capabilities Comparison
Full Self-Driving offers significantly more advanced features compared to the discontinued Autopilot system. FSD can drive Tesla vehicles in most situations by executing lane changes, following navigation routes, handling turns, avoiding vehicles and objects, and performing parking maneuvers. The system can even summon the vehicle to the driver's location in parking lots, though it still requires active driver supervision.
| Feature Comparison: | Autopilot | FSD |
|---|---|---|
| Traffic-Aware Cruise Control: | Yes | Yes |
| Lane Keeping (Autosteer): | Yes | Yes |
| Highway Navigation: | No | Yes |
| City Driving: | No | Yes |
| Automated Parking: | No | Yes |
| Summon Feature: | No | Yes |
Future Development Plans
Tesla announced on Thursday that it had begun offering fully autonomous robotaxi rides without safety monitors in Austin. Musk expects that "unsupervised" FSD capabilities will significantly boost demand for Tesla vehicles. The CEO also indicated that substantial value increases in FSD subscriptions will occur when users can engage in other activities, such as using phones or sleeping during rides, suggesting Tesla's plans for eventual fully autonomous operation.
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