Why Tesla’s Elon Musk Halted $1 Trillion FSD Purchases
Tesla has recently announced a significant change in its full self-driving (FSD) service. The company, led by CEO Elon Musk, will transition the FSD model to a subscription-only service starting in mid-February 2026. This decision marks the end of outright purchases for FSD.
Reason Behind the Change
The move comes as part of a strategy influenced by Musk’s compensation package, approved by shareholders late last year. This package contains ambitious targets, one of which includes achieving “10 Million Active FSD Subscriptions.” Transitioning to a subscription model is seen as a way to accelerate this goal.
Benefits of Subscription Model
- Consistent Revenue: Subscription services provide a steady income stream compared to one-time purchases.
- Pricing Flexibility: A subscription model allows Tesla to adjust pricing more dynamically in response to market conditions.
- Customer Retention: Subscriptions can enhance customer loyalty and engagement with Tesla products.
Analysts suggest that this change aligns with a broader trend in the tech industry, where recurring revenue models are preferred by investors. The subscription approach could provide Tesla with more predictability regarding its income.
Reactions from the Public
Regardless of public opinion, Tesla remains focused on achieving its ambitious subscription goals, emphasizing the importance of aligning business strategies with measurable outcomes. As the deadline approaches, potential customers will need to adapt to the subscription format for FSD, marking a critical shift in Tesla’s approach to autonomous driving technology.
