Musk says Tesla is moving Full Self-Driving to a monthly subscription

Elon Musk, the CEO of Tesla, announced a significant shift in the company's approach to its Full Self-Driving (FSD) software during a recent update on his social media platform X. Starting February 14, Tesla will discontinue the option to purchase FSD for a one-time fee and will instead offer it exclusively as a monthly subscription service. This change has already impacted Tesla's stock, which saw a decline of over 2% on the announcement day. The subscription for FSD will begin at $99 per month, a move that underscores Musk's vision of positioning Tesla as a frontrunner in the autonomous vehicle sector. In line with its ambitions, Tesla has launched a limited robotaxi service in Austin, Texas, and is also providing ride-hailing services in San Francisco, albeit with a human driver present. However, the company faces stiff competition from Alphabet's Waymo, which has been making significant strides in the driverless car market. Recent reports indicate that Waymo has achieved over 450,000 paid rides weekly, operating in multiple cities including Austin, San Francisco, and Los Angeles, with plans to expand further by 2026. As Tesla prepares to report its fourth-quarter delivery and production figures on January 28, the company has already noted a decline in performance. Deliveries for the last quarter totaled 418,227, reflecting a 16% drop from the previous year, while production numbers fell by 5.5%. This continuing trend marks the second consecutive annual decline for the electric vehicle manufacturer.