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Saved February 14, 2026
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Tesla is discontinuing its Autopilot feature and replacing it with a subscription-based Full Self-Driving (FSD) service. Starting February 14, buyers will only have the option to pay $99 per month for FSD, which Elon Musk suggests will increase in price as features improve. This move aims to generate recurring revenue for Tesla amid falling profit margins and declining sales.
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Tesla is facing a sales suspension in California due to accusations of deceptive marketing related to its Autopilot feature. The company has been given 60 days to address these issues, with California being its largest but declining market. To avoid further complications, Tesla decided to discontinue the Autopilot branding altogether. Now, new Tesla buyers must purchase the Full Self-Driving (FSD) package for their vehicles to access autonomous steering features. Until mid-February, this package costs a one-time fee of $8,000. After that, customers will only have the option of a $99 monthly subscription.
Elon Musk hinted that this subscription fee may increase as FSD capabilities improve, particularly when the feature allows for unsupervised driving, where users could potentially sleep or use their phones during rides. The automotive industry is increasingly focusing on recurring revenue models, moving away from one-time sales to subscription services. This shift is reflected in competitors like General Motors and BMW, who have also explored similar avenues. Though Tesla's stock remains strong, the company is experiencing declining profit margins and sales, making regular income from subscriptions appealing to maintain financial stability.
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