Elon Musk Announces Change to a Tesla Fee That Could Impact Everything

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Elon Musk, the controversial CEO of electric vehicle (EV) automaker Tesla, has announced a significant change in how the company will charge for its Full Self-Driving (FSD) system.

This is a change that could upend Tesla’s entire business model. Read on for more details about the upcoming change at Tesla.

Also see the Tesla investing mistake that could cost you thousands.

Tesla’s FSD Change

Beginning on Feb. 14, 2026, Tesla will discontinue selling its FSD technology as a one-time purchase, per MarketWatch. Instead, it will be offered only as a subscription service costing $99 per month.

Until now, FSD buyers simply had to pay a substantial upfront fee for the automated self-driving software. At one time, FSD cost $15,000 before eventually being reduced to $8,000. Musk announced on X that after Feb. 14, that one-time purchase option will be wholly eliminated.

This shift toward recurring revenue is a common strategy in the tech world, but far less so in the auto industry. With one-off sales of FSD failing to gain broad traction with buyers, pivoting to a monthly fee could make FSD both more accessible to owners and more profitable for Tesla.

Musk has long asserted that FSD is essentially the cornerstone of Tesla’s future (including Musk’s robotaxi ambitions), and this move may be the only way to keep the tech alive and financially viable.

What’s Next for Tesla?

Tesla saw a rocky 2025, with controversy surrounding Musk’s government involvement and Tesla’s falling sales. After the FSD announcement, shares of its stock closed 1.8% lower, CNBC reported.

By shifting to a subscription-only business model for FSD, Tesla is creating a predictable and recurrent income that could help work toward Musk’s goals. As MarketWatch reported, one of the targets of Musk’s $1 trillion compensation package is 10 million active FSD subscriptions.

That said, some buyers may be hesitant to invest in an indefinite subscription to a software feature that still has not achieved full autonomous driving. Whether it creates the future for Tesla that Musk has promised, though, remains to be seen.

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