Tesla’s move to a Full Self-Drive subscription model and what it means

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  • Starting February 14, Tesla will transition its fully self-driving software to a subscription-only model.
  • Despite its name, Tesla’s FSD is considered a Level 2 self-driving system, which requires an attentive driver.
  • The National Highway Traffic Safety Administration is conducting a public investigation into FSD following crashes in low-visibility conditions.

Tesla is hard at work on a subscription-only version of its fully self-driving software as regulators examine the system’s effectiveness and lawmakers consider new laws regarding self-driving cars.

Telsa CEO Elon Musk said in a post on his social media platform X.com that the Silicon Valley company’s fully self-driving software will move to a monthly subscription model starting February 14.

“Tesla will stop selling FSD after February 14th,” Musk said in the post. “FSD will only be available as a monthly subscription from then on.”

After the announcement, Tesla stock fell about 0.9% to nearly $442 per share by the start of trading on the Nasdaq stock exchange on Wednesday, January 14th. Prior to Musk’s late-night post, Tesla stock was trading at approximately $446 per share at the close of trading on Tuesday, January 13th.

What is the level of self-driving cars?

The National Highway Traffic Safety Administration classifies autonomous driving into six levels.

Here’s how the agency defines each level:

  • Level 0 (instantaneous driving assistance): The system provides instantaneous driving assistance, such as warnings and alerts, or emergency safety interventions, while the driver remains fully focused and alert.
  • Level 1 (driving assistance): The system continuously assists with either acceleration/braking or steering while the driver remains fully engaged and attentive.
  • Level 2 (additional assistance): The system provides continuous assistance with both acceleration/braking and steering while the driver remains fully engaged and attentive.
  • Level 3 (conditional automation): The system actively performs the driving task while the driver can continue to take over.
  • Level 4 (Advanced Automation): The system is fully responsible for the driving task within a limited service area, but the occupants only act as passengers and do not need to be involved.
  • Level 5 (fully automated): The system is fully responsible for the driving task, while the occupants only act as passengers and do not need to be involved.

What level of autonomy is Tesla’s fully autonomous driving?

Telsa’s fully self-driving cars are generally considered capable of Level 2 self-driving, according to the California Learning Resource Network.

“Despite the name ‘Full Self-Driving,’ Tesla FSD is not a Level 5 self-driving system,” the website said in a February 2025 post. “At this time and as of this writing, it is generally considered to be a Level 2 system with advanced capabilities that approximate Level 3, but do not fully meet that requirement.”

“Like other Autopilot features, Full Self-Driving (Supervised) requires a fully attentive driver and presents a series of progressive warnings that require driver response,” Tesla says in the owner’s manual for Model 3 vehicles equipped with Full Self-Driving.

“You must remain alert and ready to take over control at any time while Fully Autonomous Driving (Supervised) is engaged,” the company says in the Model 3 manual. “During fully automated driving (with supervision), cameras inside the vehicle monitor the driver’s attentiveness.”

What are regulators saying about Tesla’s fully autonomous driving?

NHTSA is conducting a public investigation into Tesla’s fully self-driving system that began in October 2024, investigating instances where Tesla cars with the software activated crashed after experiencing reduced visibility on the road.

NHTSA said it began investigating after receiving reports of four such crashes involving vehicles equipped with FSD, and said the software was believed to have been activated at the time. “In these crashes, conditions such as sun glare, fog, and airborne dust reduced visibility on the road,” the agency said. “In one of the accidents, a Tesla vehicle fatally injured a pedestrian. One additional accident occurred under these circumstances, with injuries reported.”

The FSD investigation is one of 12 investigations related to Tesla vehicles that NHTSA currently has open.

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