New York, January 14, 2026, 10:11 EST — Regular session
Tesla shares dropped roughly 1.8% Wednesday morning following CEO Elon Musk’s announcement that the company will phase out one-time purchases of its Full Self-Driving software, switching to a subscription-only model. The stock slipped $7.98 to $439.22, after closing Tuesday at $447.20. 1
The timing is tricky for a stock driven as much by its software ambitions as its vehicles. Investors are focused on whether Tesla can steady its revenue from driver-assistance—and if regulators will allow it to do so.
The math shifts for customers too. While a subscription might boost adoption, it can just as easily frustrate those who preferred a one-and-done payment.
Musk announced on X that Tesla will “stop selling FSD after Feb 14” and that going forward, “FSD will only be available as a monthly subscription.” Right now, Tesla offers FSD (Supervised) in the U.S. for $8,000 upfront or $99 monthly, according to Investing.com. 2
Tesla has consistently emphasized that the feature isn’t fully autonomous. In a previous statement about its subscription rollout, the company clarified that the current capabilities “do not make the vehicle autonomous” and “require a fully attentive driver, who has their hands on the wheel.” 3
Safety concerns continue to weigh on sentiment. In October, the U.S. National Highway Traffic Safety Administration launched an investigation into 2.88 million Tesla vehicles fitted with Full Self-Driving after reports surfaced of traffic violations and crashes. The agency warned it could mandate a recall if it determines there’s an unreasonable risk. Oliver Carsten, a transport safety professor at the University of Leeds, described the probe as “a wake-up call for Europe.” 4
In a separate regulatory filing, Tesla awarded Senior Vice President Xiaotong Zhu a non-qualified stock option for 520,021 shares, priced at $435.80 each. The grant date for this award was Jan. 8. The Form 4 filing detailed a vesting schedule spanning multiple years. 5
Tesla is also dealing with legal pressure. The company has agreed to mediation with the U.S. Equal Employment Opportunity Commission over a racism lawsuit linked to its Fremont, California, factory. According to a court filing, talks could begin in March or April. 6
That said, shifting to subscriptions isn’t a guaranteed win. If users resist the monthly charges, the “take rate”—or the percentage of owners paying for the software—might barely budge. On top of that, another safety hiccup could put even more pressure on the strategy.
Tesla will release its fourth-quarter earnings Wednesday, Jan. 28, after markets close. The company also plans a live Q&A webcast at 5:30 p.m. Eastern, it said. 7
