New York, Jan 14, 2026, 4:01 PM EST — After-hours
- Tesla shares fell 2.3% following Musk’s announcement that FSD will switch to subscription-only after Feb. 14
- The shift puts a spotlight back on Tesla’s software approach amid growing regulatory scrutiny of driver-assistance technology
- Investors are turning to Tesla’s earnings report due late January for clearer insights on monetization and demand
Tesla shares slipped Wednesday following CEO Elon Musk’s announcement that the company will stop selling its Full Self-Driving software as a one-time purchase. Starting Feb. 14, the feature will be available only via monthly subscription. Last year, U.S. safety regulators launched an investigation into 2.88 million Tesla vehicles after reports linked the system to traffic violations and crashes. 1
The pricing shift is significant since FSD remains one of the limited tools Tesla can adjust without ramping up factory production. Investors want evidence that software and services can step up when vehicle sales falter.
Subscription-only plans might make it easier for drivers reluctant to shell out thousands upfront. They also draw attention to how regulators handle driver-assistance systems that aren’t fully autonomous.
On Wednesday, Emmanuel Rosner of Wolfe Research described his view on Tesla as “tactically constructive,” though he maintained a Hold rating, Barron’s reported. 2
Tesla’s support page shows Full Self-Driving (Supervised) priced at $8,000 as a one-time buy, or $99 monthly. The company stresses the feature “requires active driver supervision and does not make the vehicle autonomous.” 3
Musk announced the change in a post on X, stating: “Tesla will stop selling FSD after Feb 14” and that “FSD will only be available as a monthly subscription thereafter.” 4
Traders will be tracking if the new pricing sparks wider adoption or just swaps larger one-time payments for smaller monthly fees. Either way, it shifts Tesla’s short-term story closer to autonomy rather than vehicle sales.
Tesla closed 2.3% lower at $436.93, rattled between $434.24 and $447.00 during the session. Roughly 50 million shares swapped hands.
A separate SEC filing revealed that senior vice president Xiaotong Zhu was granted options to purchase 520,021 shares at a strike price of $435.80, with vesting starting in April 2027. 5
Tesla’s stock is still at the mercy of legal news. The company has agreed to mediation with the U.S. Equal Employment Opportunity Commission over a racism lawsuit related to its Fremont, California plant. Tesla denies allowing harassment and has previously called the agency’s actions “headline-chasing.” 6
As Thursday’s session approaches, investors will focus on how Tesla manages current one-time FSD buyers and if regulators intensify their scrutiny. With the Feb. 14 switch date looming, even minor pricing shifts—or who ends up paying—could sway the stock.
Tesla’s fourth-quarter earnings drop Wednesday, Jan. 28, right after the market closes. A management Q&A webcast will follow. 7
