Elon Musk’s Tesla will stop offering one-time purchase option for self-driving software to help meet $1 trillion pay package target

Tesla Model Y

• Tesla to replace one-time FSD purchases with subscriptions starting Feb 14, 2026.
• The move aims to boost recurring revenue and meet Musk's compensation milestones
• Customers must subscribe for FSD access; permanent ownership option will end

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Tesla has announced that it will discontinue the one-time purchase option for its Full Self-Driving (FSD) software, moving entirely to a subscription-based model from February 14, 2026. The change comes as Tesla pushes to scale recurring software revenue and is being viewed in the context of CEO Elon Musk’s $1 trillion compensation plan approved by the company’s board.

Until now, Tesla customers could either buy FSD outright or opt for a monthly subscription. With the new policy, buyers will only be able to access the software through a subscription, ending the option of a permanent add-on tied to vehicle ownership. Tesla has not announced changes to subscription pricing, but the move signals a strategic shift in how the company plans to monetise its advanced driver-assistance features.

Why Tesla is moving to a subscription-only model

The decision is closely linked to performance milestones outlined in Musk’s compensation package, which was approved in November 2025. One of the product-related targets mentioned in Tesla’s proxy filings is achieving 10 million active FSD subscriptions. By removing the one-time purchase option, Tesla could push more users toward subscriptions, accelerating progress toward that goal.

From a business perspective, subscription revenue offers predictability. Unlike one-off payments, recurring subscriptions provide steady cash flow and allow companies to adjust pricing as products evolve. For Tesla, which continues to develop and update FSD features through software updates, a subscription-only model aligns more closely with its long-term roadmap.

Changes in how Tesla defines Full Self-Driving

Around the time Musk’s pay package was announced, Tesla also updated how it describes FSD on its website. The company clarified that current features require active driver supervision and do not make the vehicle autonomous. It also noted that feature availability depends on regulatory approval and may vary by region.

These changes came amid increased scrutiny of Tesla’s marketing claims. A US court recently allowed a class-action lawsuit to proceed, with plaintiffs alleging that Tesla overstated FSD’s capabilities. The revised language appears aimed at setting clearer expectations for customers and regulators.

What this means for customers

For customers, the shift removes the option of a one-time payment in exchange for permanent access. While a subscription may reduce upfront costs, long-term users could end up paying more over time. Access to FSD will now depend entirely on maintaining an active subscription, rather than being linked to vehicle ownership.

Broader goals tied to the $1 trillion package

Beyond FSD subscriptions, Musk’s compensation plan includes several ambitious targets. These include Tesla reaching a $2 trillion market capitalisation, delivering 20 million vehicles, deploying one million Optimus humanoid robots, and operating one million robotaxis commercially. The move to a subscription-only FSD model fits into this broader push to scale Tesla’s software and services business alongside its vehicle sales.