New York, January 14, 2026, 09:39 ET — Regular session
- Tesla shares dipped roughly 0.4% early, following Musk’s announcement that FSD will move to a subscription-only model starting Feb. 14
- Move eliminates the one-time purchase option for the driver-assistance package
- Investors are eyeing the Jan. 28 earnings report for updates on software revenue and regulatory scrutiny
Tesla shares dipped about 0.4% to $447.20 in early Wednesday trading, after closing at $449.04 Tuesday. CEO Elon Musk announced the company will stop selling its Full Self-Driving software outright, switching to a monthly subscription model starting Feb. 14. The driver-assistance package, now called “FSD (Supervised),” currently costs U.S. buyers $8,000 upfront or $99 per month. U.S. safety regulators launched an investigation last year into 2.88 million Teslas with the system, following over 50 reports of crashes and traffic-safety issues. 1
Tesla’s pricing adjustment goes beyond a simple checkout tweak. It pushes the autonomy narrative closer to recurring revenue — the kind investors crave for steadier, higher-margin growth.
Tesla is set to release its fourth-quarter earnings on Jan. 28. Investors will get an early read on software revenue and hear how the company plans to address regulatory concerns tied to its driver-assistance tech. 2
Priced at $99 a month, it would take about seven years of payments to equal the previous $8,000 upfront cost. This makes it more affordable initially, but you lose the chance to pay once and own it outright.
Wolfe Research’s Emmanuel Rosner described himself as “tactically constructive” on Tesla, despite highlighting a challenging near-term environment. He also emphasized autonomy as a crucial factor in the stock’s long-term outlook. 3
On Wednesday, Tesla agreed to mediation with the U.S. Equal Employment Opportunity Commission over allegations of widespread harassment of Black workers at its Fremont, California plant. The EEOC indicated that talks might start in March or April. Meanwhile, the judge has put some evidence deadlines on hold to focus on the mediation process. 4
A regulatory filing revealed that senior vice president Xiaotong Zhu was granted stock options linked to 520,021 shares, priced at $435.80 each, with vesting starting in 2027. 5
Driver-assistance subscriptions are heating up as automakers race to monetize software features with steady revenue streams. Tesla faces a tricky spot: the feature requires drivers to stay alert, despite the company’s heavy push on autonomous branding.
The downside is clear. Safety probes could drag out, leading to updates and stiffening public and regulatory skepticism. Stronger moves from regulators might dent adoption and drive up costs.
Tesla’s stock now moves just as much on autonomy news as on car sales and profit margins. This dynamic can cut both ways, particularly when investors crunch the numbers on potential recurring software revenue—and the timeline to reach it.
Tesla’s next major event hits Jan. 28, with earnings and a Q&A focused on its software plans. The move to subscription-only for FSD kicks in Feb. 14.
