Elon Musk’s announcement that Tesla will soon stop selling its Full Self-Driving (FSD) software, which will only allow consumers to pay monthly fees, has sparked mixed reactions online and more questions about tech giants’ shift to subscription-based services.
Musk, Tesla’s CEO, shared the news on Wednesday on
For Musk, the move marks an end to his long-standing portrayal of FSD as an “appreciating asset” worth buying right now because the price will only rise as the software improves. And for Tesla, the change represents the latest decision by a tech giant to move to a software-as-a-service (SaaS) model, in which a provider continues to host its software (handling updates, security and maintenance) while renting it to users. But for the Tesla curious and those who already own one of Musk’s cars, this move was a reminder of how difficult it has become to truly own things in today’s economy.
“Imagine buying a self-driving car and still having to pay a monthly subscription to actually make it drive itself,” one user wrote in a reply to Musk’s announcement.
“You will own nothing and be happy.”
At current rates, Tesla owners can purchase FSD (which remains primarily a driver assistance program that requires an attentive driver at all times) for $8,000, or opt for a $99 monthly subscription. Tesla owners who have already purchased FSD will keep the software, although it is unclear whether they will be able to transfer the rights to a new vehicle, as Tesla previously made possible through limited-time promotions. Tesla did not immediately respond Fortune‘s request for comment on whether rates would remain unchanged or whether transfers between vehicles would be possible after February 14. At the current monthly price, it would take drivers about seven years to match the full purchase cost.
Tesla has gradually increased the purchase price of FSD from $5,000 at launch to $15,000 in 2022, the most expensive point. Musk described the price increases as evidence that FSD is a good investment that consumers can invest in early, although the upfront price of the software dropped to $8,000 in 2024, while Tesla lowered the monthly rental price in the US from $199 to $99 around the same time.
The price cuts came in the wake of reports of a low success rate among Tesla drivers who chose to upgrade to FSD. While Tesla doesn’t actively disclose what percentage of its customer base uses FSD, CFO Vaibhav Taneja said during an October earnings call that the share was “still small, about 12% of our current fleet.”
‘You will never really own your EV’
Many of the responses to Musk’s announcement lamented the prevalence of subscription-based features that car companies are now withholding.
“People want to own their stuff completely, not be tied down forever,” one user wrote.
“You will never truly own your electric car because it will be useless without the software that you can never remove, replace or modify,” said another, before adding a recommendation: “Stick to internal combustion engines with as few computers as possible.”
Recently, criticism of the software dependency of new vehicles has increased, to the point that the industry is calling electric cars “smartphones on wheels.” Tesla is far from the only offender, as Volkswagen released a new feature in August to boost the horsepower of some of its electric cars, which cost $22.50 per month. GM also offers a subscription-based hands-free driving feature, Super Cruise, on designated highways. The service launched in 2017 and offers a three-year trial period followed by a $25 monthly fee. Super Cruise has become a major moneymaker for GM, which late last year forecast an active user base of 600,000 and revenue of more than $200 million by 2025.
Software updates and subscription costs in their cars can frustrate users. Last year, 68% of consumers said they would pay for car-related services, according to a survey by S&P Global, up from 86% in 2024.
While electric vehicles are often the most software intensive, all cars today rely on connected services in some way, regardless of their powertrain. Most modern cars are supported by up to a million lines of code, and frequent updates can quickly make some features incompatible. In 2022, as carriers upgraded their telecommunications infrastructure from 3G, many Toyota, Chrysler and Jeep cars — both battery and gasoline models — permanently lost access to a feature that automatically notified first responders in the event of an accident.
This story originally appeared on Fortune.com
