Elon Musk’s announcement that Tesla will soon stop selling its Full Self-Driving (FSD) software, leaving consumers with monthly payments as the only option, sparked mixed reactions online and raised more questions about the tech giant’s move to subscription services.
Tesla CEO Musk shared the news on X on Wednesday. Starting February 14th, FSD will no longer be available for direct purchase, and thereafter the software will be “monthly subscription only.”
For Musk, the move marks the end of his long-standing characterization of FSD as an “appreciating asset” worth buying now as the price will only increase as the software improves. For Tesla, the change represents the latest decision by a tech giant to move toward a software-as-a-service (SaaS) model, in which providers continue to host its software — handling updates, security and maintenance — while renting it out to users. But for those interested in Tesla and those who already own Musk’s cars, the move is a reminder of how difficult it is to actually own something of your own in today’s economy.
“Imagine buying a self-driving car and still having to pay a monthly subscription fee to actually drive itself,” one user wrote in response to Musk’s statement.
“You will have nothing and be happy.”
At current prices, Tesla owners can purchase FSD for $8,000 (the feature is still primarily a driver assistance program that requires the driver to stay focused at all times), or opt for a monthly subscription of $99. Tesla owners who have already purchased FSD will keep the software, but it’s unclear whether they will be able to transfer rights to a new vehicle, as Tesla has previously done through limited-time promotions. Tesla did not immediately respond wealthComment was requested on whether rates will remain the same after February 14 or whether they will be transferable between vehicles. At current monthly price points, it would take drivers about seven years to match the outright purchase costs.
Tesla has gradually increased the purchase price of FSD from US$5,000 at launch to the most expensive point of US$15,000 in 2022. Musk described the price increase as evidence that FSD is a sound investment for consumers to jump in early, although the upfront cost of the software is set to drop to $8,000 in 2024, around the same time Tesla is lowering its U.S. monthly fee from $199 to $99.
The price cut comes after reports of low conversion rates among Tesla drivers choosing to upgrade to FSD. While Tesla does not proactively disclose the percentage of its customer base that uses FSD, Chief Financial Officer Vaibhav Taneja said during an October earnings call that the percentage is “still small at about 12% of our existing fleet.”
“You never really own your electric car”
Many responses to Musk’s statement lamented the prevalence of subscription-based features that car companies now retain.
One user wrote: “People want to own their stuff completely, rather than always being beholden to someone else.”
“You’ll never truly own your electric car because it’s useless without software you can never remove, replace, or modify,” said another, before adding a piece of advice: “Stick to internal combustion engines and use as few computers as possible.”
Criticism of new cars’ software dependence has grown recently, to the point where the industry refers to electric vehicles as “smartphones on wheels.” Tesla isn’t the only offender, Volkswagen in August released a new feature to increase the horsepower of some of its electric vehicles for $22.50 a month. GM is also offering Super Cruise, a subscription-based hands-free driving feature on select highways. The service launched in 2017 and offers a three-year trial, followed by a $25 monthly fee. Super Cruise has grown into an important moneymaker for General Motors, which late last year projected an active user base of 600,000 and revenue of more than $200 million by 2025.
Software updates and subscription fees in cars can start to frustrate users. A S&P Global survey showed that 68% of consumers expressed willingness to pay for car connectivity services last year, down from 86% in 2024.
While electric vehicles tend to be the most software-heavy, all cars today rely on connected services in some way, regardless of their powertrain. Most modern cars support up to a million lines of code, and frequent updates can quickly cause some features to be incompatible. In 2022, as carriers upgrade their telecommunications infrastructure from 3G, many vehicles made by Toyota, Chrysler and Jeep, both battery-powered and gasoline-powered, will permanently lose the ability to automatically notify first responders in the event of a collision.
This story originally appeared on Fortune.com