Elon Musk Says Tesla Will Stop Selling FSD Post Valentine's Day, Touts Subscription Model Instead

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has shared that the company will stop offering the Full Self-Driving (FSD) service as a one-time payment in favor of a monthly subscription.

Monthly FSD Subscription

In a post on the social media platform X late Tuesday, the Tesla CEO shared that the FSD service would not be available with a one-time payment. "Tesla will stop selling FSD after Feb 14," Musk shared. He added that the service will instead only be available FSD will only be available "as a monthly subscription" post Valentine's Day.

It's worth noting that Tesla offers the FSD service currently with either a one-time payment of $8,000 in the U.S. or as a monthly subscription with a fee of $99/month. Given the update, the FSD subscription would amount to $1188 annually, which could help boost adoption as the FSD take rate, according to investor Gary Black, is currently at 15%.

Rivian's Subscription Model

The news comes as Tesla rival Rivian Automotive Inc. (NASDAQ:RIVN) had earlier unveiled its autonomous driving technology, which would utilize a LiDAR-based approach and also offer the "Universal Hands Free" assisted driving system, which Rivian says can drive on over 3.5 million miles of road across the U.S. and Canada on "clearly marked" lanes. 

It also showcased its Autonomy+ subscription, which would be available for a one-time payment of $2,500 or a monthly subscription fee of $49.99. The automaker is targeting an early 2026 launch for the service.

Tesla Model Y Emerges As Best-Seller

The company's Model Y Crossover SUV, which recently saw a 7-seater layout introduced, emerged as the best-selling EV in the U.S., as Tesla sold over 350,528 units of the vehicle.

Brett Guthrie Touts Autonomous Driving Standard

Rep. Brett Guthrie (R-OH), meanwhile, has touted a federal framework for self-driving regulations across the U.S., aimed at promoting innovation and growth of the technology, which would help U.S. companies develop technologies at a quicker pace when compared to their Chinese counterparts.

Tesla scores well on the Momentum metric, while offering satisfactory Quality, but poor Value. It also has a favorable price trend in the Short, Medium, and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Price Action: TSLA slipped 0.39% at Market close on Tuesday to $447.20, declining 0.08% further to $446.85 during After-hours trading, according to Benzinga Pro data.

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