Tesla Shifts to Subscription Model for Full Self-Driving, Redefining Autonomous Vehicle Market

Elon Musk, CEO of Tesla, has revealed a major change in the marketing strategy for the Full Self-Driving (Supervised) system, stating that the company will no longer offer the system for a one-time payment. Instead, the monthly subscription will become the sole option for accessing autonomous driving features.

Musk shared this decision in a post on the platform "X," indicating that the new policy will take effect on February 14 of next year, without any announcement regarding a change to the current subscription price of $99 per month.

* End of Purchase Option and Introduction of a New Model

This decision marks a significant strategic shift for Tesla, which had long offered its autonomous driving system for a one-time fee that was initially set at $15,000 in 2022 before being reduced to $8,000, according to a report by TechCrunch.

While the subscription option has been available since 2021, Musk had previously encouraged customers to make the full purchase, emphasizing that the price would increase as the system's capabilities evolved towards full autonomy. However, actual sales figures have not met expectations.

* Sales Figures Below Expectations

According to earlier statements from Tesla's CFO, only about 12% of customers opted for the full payment option, which is considered significantly below the company's targets, prompting a reevaluation of its strategy.

Analysts believe that transitioning to a subscription model could increase usage rates, especially given the lower initial costs, as Tesla faces one of its most challenging financial quarters.

* Financial and Legal Motivations

The shift to a subscription model is not only commercially driven but may also be influenced by legal considerations. Increasing the number of subscribers is crucial for meeting one of the key conditions of Musk's substantial bonus package, which stipulates that 10 million active subscriptions must be achieved by 2035.

In recent years, Tesla has faced significant criticism and lawsuits related to the marketing of its autonomous driving system, having been accused of making misleading claims about the full autonomy of its vehicles, with some models later requiring hardware upgrades.

In December, a U.S. court ruled that Tesla had engaged in misleading advertising regarding its autonomous driving systems, leading the California vehicle authority to temporarily suspend the company’s licenses until it either rebranded its products or aligned its software with its advertised promises.

* Growing Competition in the Autonomous Driving Market

Although Tesla's system is still regarded as one of the most advanced in the United States, competition is intensifying. Major companies such as Ford, General Motors, and Rivian are developing their own semi-autonomous driving systems, while some Chinese firms offer these technologies as standard features in their vehicles without additional charges.

As Tesla pivots to a subscription model to boost revenue and mitigate legal risks, the question remains: Will consumers embrace the idea of paying monthly for autonomous driving, or will they seek cheaper alternatives in an increasingly crowded market of smart vehicle options?