Tesla reveals 1.1 million FSD subscribers as subscription prices set to climb with capabilities

Tesla Shifts FSD to Subscription-Only Model

Tesla announced during its fourth-quarter earnings call that it has reached 1.1 million active FSD subscriptions worldwide, the first time the electric vehicle maker has publicly disclosed this figure2

2

3

3

. CFO Vaibhav Taneja revealed that over 70% of these were upfront purchases, though this revenue model is about to change dramatically3

3

. The company will eliminate the one-time purchase option for Full Self-Driving (Supervised) on February 14, forcing all future customers into a subscription-only model priced at $99 per month1

1

5

5

. Until that date, customers can still pay $8,000 for lifetime access to the driver-assistance system.

Subscription Prices Set to Increase

Elon Musk confirmed on X that the $99 per month subscription will rise as FSD's capabilities improve, though he provided no specific timeline or pricing details1

1

5

5

. "The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD)," Musk wrote, hinting at future autonomous driving capabilities that would justify higher subscription prices1

1

.

This represents a significant shift from Tesla's previous pricing strategy, which saw the FSD feature reach a high of $15,000 in September 2022 before being reduced to $8,000 in 20241

1

. The move to recurring revenue through subscriptions could impact automotive margins, according to Taneja3

3

.

Milestone Toward Musk's Compensation Package

The 1.1 million active FSD subscriptions represent more than one-tenth of the way toward a critical milestone in Elon Musk's unprecedented compensation package: selling 10 million subscriptions to Full Self-Driving2

2

. The number marks a 38% increase from approximately 800,000 subscriptions in the fourth quarter of 20242

2

. Tesla now has nearly twice as many FSD subscribers as General Motors does for Super Cruise, its hands-free autonomous driving system2

2

. Tesla executives emphasized that selling FSD subscriptions is more important than selling electric vehicles, with Musk declaring that "the future is autonomous"2

2

.

Autopilot Discontinued as Tesla Doubles Down on AI

Tesla discontinued its basic Autopilot driver-assistance system in the United States and Canada, pushing customers toward the more advanced Full Self-Driving technology4

4

. The company recently dropped the Autopilot name from its suite of standard features after a California judge ruled in December that Tesla engaged in deceptive marketing by overstating the capabilities of both FSD and Autopilot2

2

. A version of the FSD software powers Tesla's Robotaxi service, which recently started operating without human safety monitors in Austin and is expected to expand to Dallas, Phoenix, and Miami in 20262

2

. Musk announced that production of the Cybercab, a two-seater fully autonomous vehicle, begins in April, though he warned that initial production of both the vehicle and Tesla's Optimus humanoid robot will be "agonizingly slow"5

5

.

Safety Scrutiny Intensifies

The camera-and-AI-based FSD system faces multiple investigations, complaints, and lawsuits despite Tesla's bullish subscription numbers. In October, the U.S. National Highway Traffic Safety Administration opened an investigation into nearly 3 million Tesla vehicles equipped with FSD over more than 50 reports of crashes and traffic law violations2

2

. Tesla's approach relies on cameras and AI rather than radar and lidar, a strategy that has drawn considerable controversy1

1

. The company also announced a $2 billion investment into xAI, Musk's artificial intelligence company, with the deal expected to finalize in the first quarter of 2026 pending regulatory approval3

3

. Tesla engineering VP Lars Moravy stated on the earnings call that investors should "start thinking about us as providing transportation as a service, more than the total market for vehicles alone"2

2

. CFO Taneja declared that "2026 will be when all of this began," calling it "the most exciting change in Tesla's history"2

2

.