New York, Jan 15, 2026, 09:33 EST — Regular session underway.
- Shares of Tesla dropped roughly 2% in early trading amid investor concerns over changes to its Full Self-Driving software pricing.
- CEO Elon Musk announced that after Feb. 14, the driver-assistance feature will be available exclusively through a subscription model.
- Traders await Tesla’s quarterly results later this month, seeking clues on software revenue and demand.
Tesla (TSLA.O) shares slipped roughly 1.8% to $439.20 Thursday morning, weighed down by a new pricing update for its Full Self-Driving feature and recent legal developments that rattled investors.
This shift is significant since Tesla’s valuation hinges heavily on its software prospects. Supporters argue self-driving tech and subscription services offer better margins than vehicle sales. Critics, however, question both customer willingness to pay and regulatory hurdles.
Timing matters here. The stock shows little tolerance for anything that clouds near-term revenue, even if it might clarify the longer-term outlook.
Musk announced Tesla’s Full Self-Driving (FSD) software will switch to a monthly subscription model after Feb. 14, dropping the one-time $8,000 purchase option in the U.S. The subscription will run $99 per month. Despite its name, FSD is a driver-assistance feature that still demands driver attention and intervention. The U.S. safety regulator NHTSA is currently investigating 2.88 million Teslas equipped with FSD, Reuters reported. 1
Separately, Tesla has agreed to mediation aimed at settling the U.S. Equal Employment Opportunity Commission’s lawsuit alleging widespread harassment of Black employees at its Fremont, California, plant. The EEOC said talks could start in March or April, with both sides required to suggest next steps to the judge by June 17 if negotiations stall. Tesla denies the claims, dismissing the agency as “headline-chasing.” 2
The legal process moves slowly, yet it often drags on sentiment, especially as the stock remains jittery over safety and oversight concerns around driver-assistance systems.
Tesla will release its fourth-quarter results after the market closes on Wednesday, Jan. 28. Management plans to hold a Q&A webcast at 5:30 p.m. Eastern. 3
Investors will be watching closely to see how Tesla pitches its subscription-only shift — is it about boosting adoption, stabilizing revenue, or managing risks tied to how the feature was marketed and explained?
There is, however, a clear downside risk. A harsher result from the NHTSA probe might compel Tesla to alter software or implement other fixes. Missteps in promoting its driver-assistance features could also drive up legal expenses. Without growth in subscriptions, Tesla will have to rely more heavily on its traditional auto business—just as it’s pushing a tech-focused story.
Traders have their eyes on two key dates: Jan. 28, when earnings and guidance drop, and Feb. 14, when the shift to subscription-only FSD kicks in — a crucial trial to see if ditching the upfront cost boosts sign-ups.
