The Car You Never Own: Tesla's New FSD Move Turns Your Garage Into a Monthly Bill

Tesla customers will soon face monthly fees as the Company stops selling its Full Self-Driving (FSD) software and moves to a subscription model, Elon Musk announced on X Wednesday afternoon.

In Musk's X announcement, he said, 'Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.' The Tesla CEO and X founder's announcement gained mixed reactions on social media platforms like X and Reddit.

In a Fortune exclusive, Musk's decision to make FSD available only via a monthly subscription indicates the 'appreciating asset' days of FSD are over. The shift, from a single, one-time payment of $8,000 (£6,000) to a $99 (£74) monthly and $999 (£745) annual subscription fee, highlights Elon Musk shifting to the software-as-a-service (SaaS) model, where the manufacturer rents out the software to users but retains full control of maintenance, security, and updates.

Musk has not made any further statement on this shift, particularly on how it may affect Tesla customers who have purchased the software. As a result, consumers are left with no option but to wait until 14 February.

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The Future of Transport

Tesla's Full-Self Driving (FSD) Cars require a human behind the wheel because their features have not made them fully autonomous. Dubbed 'The Future of Transport,' the FSD is currently available only in the U.S., Canada, China, Mexico, Puerto Rico, Australia, New Zealand, and South Korea, though Tesla is bringing it to other regions.

These FSD vehicles can drive to, and for, the user and perform perpendicular and parallel parking. Tesla claims these FSD vehicles are seven times safer than a human driver. With its already steep price tag, adding a hefty monthly subscription fee to FSD raises questions about the value of owning an electric vehicle.

Tesla's initial offering of FSD in 2022 had an even steeper $15,000 (£11,000) price tag, but dropped to $8000 (£6,000) in 2024 following an alleged low conversion rate.

Tesla Faces Backlash

The online community has been quick to send Tesla into a whirlwind of backlash, taking to X and Reddit to express their concerns.

X user @NobleBrown lamented on Musk's post on X (formerly Twitter), saying, 'You will never actually own your EV, because it will be useless without the software that you can never remove, replace, or modify. And someone will always be able to remotely shut off your car. Stick to internal combustion engines with as few computers as possible,' hinting that traditional cars should still be preferred over electric vehicles.

Notably, @esrtweet also expressed dismay over Tesla's move, saying, 'I'm usually numbered among your fans, but you just destroyed any chance that I will ever buy a Tesla.' Users are expressing more concern over everything needing to be on a monthly subscription nowadays, with one user pointing out that if air could be sold, people would need to pay subscription fees for it as well.

Tesla has faced further criticism on Reddit, where one user points out Elon Musk's attempt to drive people away from his Tesla vehicles, saying, 'Elon is doing his very best to convince everyone on the planet not to buy his vehicles. Amazing!'

Tesla's decision to move FSD behind a paywall can be a power move. Until Musk's 14 February deadline, the world is yet to see how Tesla owners will react to this shift.