Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.
Gonzalo Fuentes | Reuters
Tesla CEO Elon Musk said Wednesday that the electric vehicle maker will stop selling its Full Self-Driving (Supervised) software for a flat rate and instead make it only available as a monthly subscription.
“Tesla will stop selling FSD after Feb 14,” Musk said in an early morning post on his social media platform X. “FSD will only be available as a monthly subscription thereafter.”
Shares of the company fell more than 2% Wednesday.
FSD, which starts at $99 per month, is key to the future of the company as Musk tries to establish Tesla as a leader in autonomous mobility.
Tesla did not immediately respond to a request for comment.
Tesla launched a robotaxi service with limited availability in Austin, Texas, last year, and the company also offers ride-hailing in San Francisco, though with a driver behind the wheel at all times.
The company is way behind Alphabet’s Waymo in driverless service. In December, Waymo reached more than 450,000 weekly paid rides, according to an investor letter from Tiger Global seen by CNBC.
Waymo operates in Austin, the San Francisco area, Phoenix, Atlanta and Los Angeles and is targeting expansion to several more cities in 2026.
Tesla reported fourth-quarter delivery and production numbers at the beginning of January, wrapping the second-straight annual drop for the EV maker. Fourth-quarter deliveries of 418,227 were about 16% lower than a year ago, and production numbers were down 5.5% from a year earlier.
Tesla reports fourth-quarter earnings on Jan. 28.
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