Tesla Switches to Subscription for Fully Autonomous Driving
Tesla has announced a significant change in its business model for the fully autonomous driving function. From now on, this option will be available exclusively on a subscription basis, and the one-time purchase option will be discontinued.
Key Details of the New Policy
The statement about this was made by the company’s CEO, Elon Musk, via social media. He announced that the sale of the Full Self-Driving (Supervised) system as a product will cease after February 14, and it will become available exclusively on a monthly subscription model.
Comparison with Market Offers
The cost of Tesla’s subscription is significantly higher than similar services from other manufacturers. For example, Rivian offers its Autonomy+ system for $49.99 per month or $2,500 for a one-time purchase. This system provides universal hands-free driving on over 3.5 million miles of roads in the US and Canada.
Ford’s BlueCruise system also costs less: $49.99 monthly, $495 annually, or $2,495 for a one-time purchase.
Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.
Approach of Other Automakers
General Motors provides new cars with three years of free use of the Super Cruise system, and after this period, the subscription costs $39.99 per month or $399 per year. This approach contrasts with Tesla’s decision to immediately switch to a paid model.
Financial Aspects of the Changes
Previously, Tesla offered fully autonomous driving for a one-time payment of $8,000. Under the new subscription model, this amount is equivalent to almost 81 months of use, or approximately seven years. Thus, for owners planning to use the car for a shorter period, the subscription may be more advantageous.
Details of the new model will likely become clearer next month. It is worth noting that Tesla already offers a subscription for customers who initially did not purchase the semi-autonomous driving system. It can be activated via the Tesla app or the car’s multimedia system.
Subscription Terms
An important detail is that the FSD subscription is non-refundable. If the feature does not meet the user’s expectations, they can only cancel the subscription but continue to use the service until the end of the paid period.
This move by Tesla reflects a general trend in the automotive industry towards monetizing software and digital services through recurring payments. While this may provide a more stable revenue stream for the manufacturer, it also changes the economics of car ownership for the end consumer. The transition to a subscription model for such key features as autonomous driving may in the future affect the used car market, as a new owner will have separate costs for software capabilities. Furthermore, it raises questions about the long-term accessibility of advanced technologies for different segments of the population if the subscription model becomes dominant in the industry.