Stock Markets January 22, 2026

Tesla to Raise Subscription Fees for Full Self-Driving as Features Advance

CEO Elon Musk Signals Price Increase for FSD Subscription Linked to Upcoming Autonomous Capabilities

By Marcus Reed TSLA
Tesla to Raise Subscription Fees for Full Self-Driving as Features Advance
TSLA

Tesla CEO Elon Musk announced an impending increase in the subscription cost for the company’s Full Self-Driving (FSD) software, aligning price hikes with enhancements in the technology’s functionalities. While Tesla moves towards a subscription-only model, the company continues to test key autonomous features amid regulatory scrutiny and legal challenges.

Key Points

  • Tesla will increase its Full Self-Driving (FSD) subscription price as the software's capabilities improve, notably with the future introduction of unsupervised driving features.
  • The company is phasing out the option to purchase FSD as a one-time fee, shifting fully towards a subscription model priced at $99 per month until February 14, after which only subscriptions will be offered.
  • Tesla is advancing its autonomous technologies, including testing robotaxis without safety drivers in Austin, Texas, and planning production of the Cybercab autonomous vehicle beginning in April.

Tesla Inc is poised to adjust pricing for its Full Self-Driving (FSD) software subscription as its autonomous driving capabilities progress, according to CEO Elon Musk's recent announcement. Currently, the subscription option for supervised FSD is set at $99 per month, but Musk indicated this rate will escalate in tandem with improvements to the system.

Tesla is transitioning away from selling FSD as a one-time purchase, currently priced at $8,000, which remains available until February 14. After that date, the offering is expected to be exclusively subscription-based.

In a public social media communication, Musk emphasized that the significant price increase will coincide with the introduction of unsupervised FSD, a mode allowing users to engage in activities such as using their phones or sleeping during the ride. Despite Musk's long-standing promotion of unsupervised FSD, the company has yet to disclose a definitive timeline for its rollout.

At present, Tesla's website continues to display the supervised use disclaimer for the FSD system. This cautionary note remains as Tesla faces multiple lawsuits and increased regulatory examination concerning its claims about the software’s current autonomous capabilities.

Musk has highlighted robotics, artificial intelligence, and autonomous vehicles as pivotal elements in Tesla’s future growth strategy. This focus has intensified as Tesla confronts slowing sales within its primary automotive sector.

The company is actively testing driverless robotaxis in Austin, Texas, and has commenced trials of the service without an onboard human safety monitor, signaling progress toward higher autonomy levels.

Further plans include production of the Cybercab, a two-seat fully autonomous vehicle slated to begin manufacturing in April. Musk previously noted that the initial production phases for this vehicle and Tesla’s Optimus humanoid robot will be "agonizingly slow," reflecting the challenges associated with deploying cutting-edge technologies.

Risks

  • Timelines for launching fully unsupervised FSD remain uncertain, which could affect customer adoption and revenue growth in the autonomous vehicle sector.
  • Regulatory scrutiny and multiple lawsuits related to Tesla’s FSD claims pose challenges that may impact the company’s legal and operational risk profile.
  • Slowing sales in Tesla’s core automotive business suggest broader market pressures that could influence the company’s financial performance amid its strategic pivot to robotics and AI-driven growth.

More from Stock Markets

SpaceX Acquires xAI, Eyes Solar-Powered Orbital AI Data Centers Feb 2, 2026 Nvidia Shares Slip After Report That OpenAI Is Seeking Alternative AI Chips Feb 2, 2026 U.S. Markets Close Higher as Industrials and Consumer Stocks Lead Gains Feb 2, 2026 Musk Moves to Combine SpaceX and xAI into a $1.25 Trillion Entity Ahead of Planned IPO Feb 2, 2026 OpenAI Seeks Alternatives to Some Nvidia Chips as Inference Needs Shift Feb 2, 2026