CEO Elon Musk announced early Wednesday that Tesla will stop selling its Full Self-Driving, or FSD, technology at a flat rate and is moving after Feb. 14 strictly to a monthly subscription model.

Musk, writing on his social site X, wrote that “Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.” The current FSD purchase price is $8,000 with the monthly subscription rate set at $99. At $99 a month, the annual price would be $1,188 and would take around seven years to reach $8,000 in FSD spending for customers.

Musk has continued to predict true self-driving is imminent, as he has for the past decade. In December, he predicted unsupervised robotaxis by year-end in Austin, Texas. However, that did not materialize.

Tesla’s decision to make FSD purely a subscription model could be an effort to convince consumers unsupervised full self-driving will be coming soon, incentivizing people to purchase FSD outright before Tesla increases subscription rates after achieving autonomy.

But it could also be a way to limit any exposure to lawsuits from FSD owners if Tesla doesn’t achieve true self-driving.

Under Musk’s recent pay package, which could be worth around $1 trillion, also includes an operations milestone of reaching 10 million active FSD subscriptions.

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Tesla: FSD Adoption Issues

Analysts broadly agree that EV sales will strengthen if the Tesla robotaxi scales up successfully and unsupervised FSD launches in 2026. Tesla announced on Jan. 2 it delivered 418,227 electric vehicles in the fourth quarter, down 15.6% from 495,570 in Q4 2024.

On the Q3 earnings call, Tesla Chief Financial Officer Vaibhav Taneja said that the paying “FSD customer base is still small, around 12% of our current fleet.”

Affordability is an issue. Currently, FSD Supervised costs $99 per month. It also can be bought outright for $8,000 until after Feb. 14, down from a peak of $15,000.

Taneja argued on the Q3 call that as “people experience supervised FSD at scale,” the demand for Tesla vehicles “will increase significantly.”

While the latest FSD v14 appears to be a big improvement, Full-Self Driving, despite its name, remains a Level 2 driver-assist system. That means drivers are still legally required to pay attention and be ready to take over at any time.

 

Tesla Stock Performance

TSLA stock fell about 1.5% to 440.80 at Wednesday’s stock market open, adding to a 0.4% decline on Tuesday.

 

Tesla stock on Wednesday is test its 50-day moving average after trading between the 21-day exponential moving average and 50-day line on Tuesday.

Wolfe Research analysts recently wrote that Tesla faces a difficult fundamental setup in 2026, but TSLA could still perform despite lower near-term estimates if execution improves. The firm believes 2026 is pivotal for Tesla to demonstrate meaningful progress in unsupervised FSD and its robotaxi service. This includes removing safety drivers and market expansion, according to Wolfe Research.

 

Tesla stock hit a record 498.83 on Dec. 22 but has now declined more than 10% since then and is 5.6% below a traditional 474.07 buy point from a cup base, according to MarketSurge. 

TSLA shares lagged the broader stock market for a good part of 2025, but rallied strongly to end the year up slightly more than 11%.

Tesla stock has a 69 Composite Rating out of a best-possible 99. The stock also has an 84 Relative Strength Rating and a 44 EPS Rating.