Tesla's FSD Subscription Count and Strategic Changes

Tesla's FSD Subscriber Count Announced

Tesla Inc. (TSLA) announced for the first time during its fourth-quarter earnings call that it has 1.1 million active Full Self-Driving (FSD) subscriptions worldwide. Chief Financial Officer Vaibhav Taneja revealed that over 70% of current subscribers purchased the FSD service outright.

Transition to Subscription Model

As a significant strategic shift, Tesla announced that starting next month, FSD will only be offered through a subscription model. Taneja emphasized that this transition will impact automotive profit margins. The subscription option is set at $99 per month, while the outright purchase option will be $8,000. However, this outright payment option will only be valid until February 14.

Elon Musk's Goal and FSD Transfer Regulations

Elon Musk stated that subscription fees would rise as FSD technology improves. He argued that these changes would help Tesla reach its trillion-dollar goal and achieve 10 million active subscribers.

Additionally, Tesla shared updated rules regarding free FSD transfers. The right to a free FSD transfer, which is valid until March 31, can be applied to new vehicles purchased between April 24, 2025, and March 31, 2026.

New Era in Model Production

Tesla also announced that it will cease production of the Model S and Model X this year. Musk stated that the program for these two models will come to an honorable end in alignment with the company's vision.