Tesla (TSLA) to stop selling Full Self-Driving package, moves to subscription-only: why it's a big move
Key Points:
- Tesla will stop selling its Full Self-Driving (FSD) package as a one-time purchase after February 14, shifting exclusively to a monthly subscription model, as announced by CEO Elon Musk.
- This change ends Tesla's long-standing narrative that FSD is an "appreciating asset" tied to the vehicle, instead framing it as a service providing level 2 driver assistance without guaranteed unsupervised self-driving.
- The shift follows a turbulent pricing history, with Tesla raising FSD prices up to $15,000 before cutting them significantly in 2023 due to low customer uptake and competitive pressures.
- Moving to subscription-only reduces Tesla's liability for unmet promises of full autonomy and aims to boost short-term cash flow amid