New York, Jan 15, 2026, 16:09 EST — After-hours
Tesla (TSLA.O) shares slipped 0.2% to close at $438.45 on Thursday. The dip came after CEO Elon Musk announced the company will discontinue the one-time purchase option for its Full Self-Driving (FSD) software. “Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter,” Musk posted on X. X (formerly Twitter)
This shift is significant since investors have viewed FSD as a crucial part of Tesla’s strategy: a high-margin software offering that could balance out the fluctuations in car prices and demand. Switching to subscriptions alters the timing of when Tesla records that revenue and affects its consistency from quarter to quarter.
The timing is tricky. Tesla’s push on driver-assistance tech now faces increased regulatory scrutiny, and even minor tweaks to product descriptions risk sparking larger debates over the software’s actual capabilities—and its limits.
Tesla will switch to offering its Full Self-Driving (FSD) software exclusively via monthly subscription starting February 14, according to Reuters. Currently, U.S. buyers can either purchase the FSD package outright for $8,000 or opt for a $99 monthly subscription. Despite the name, drivers must remain alert and ready to take control. Last year, the U.S. National Highway Traffic Safety Administration launched an investigation into 2.88 million Tesla vehicles with FSD after over 50 reports of crashes and traffic safety issues. Reuters
For shareholders, the key issue is if the shift boosts adoption enough to make up for the upfront cash buyers gave when paying a one-time fee. Subscription revenue tends to be more stable, but it’s also simpler for customers to cancel.
This week, Tesla agreed to mediation in a lawsuit brought by the U.S. Equal Employment Opportunity Commission, which alleges the company allowed widespread harassment of Black workers at its Fremont, California, assembly plant. The EEOC is coordinating with Tesla to select a mediator, with talks expected to start in March or April. Reuters
The downside is straightforward. Should regulators ramp up scrutiny on driver-assistance systems or fresh conflicts emerge over marketing and safety claims, Tesla might encounter added expenses and restrictions. That could dampen FSD’s allure right as the company encourages customers to switch to subscriptions.
TSLA’s next big event is its quarterly earnings report on Jan. 28. Investors will be focused on software revenue, margins, and any updates regarding the subscription model change set for Feb. 14. ir.tesla.com
