Tesla Ends Outright FSD Sales, Mandates Subscription Model Transition
Jan 15, 2026 (24 hr ago)
Neutral
Tesla is fundamentally altering its Full Self-Driving monetization, ending outright purchases for a subscription-only structure starting mid-February.
FSD Monetization Overhaul
- TSLA will cease selling FSD outright after February 14th, moving exclusively to a subscription model2
Existing owners face a choice
- CEO Elon Musk announced this strategic adaptation to changing market conditions via a post on X2
AI Competitive Positioning and Legal Action
- xAI, Musk's AI firm, filed a lawsuit against Apple and OpenAI, alleging the formation of an exclusionary AI monopoly4
- Musk publicly criticized the Apple-Google partnership, labeling the concentration of power as 'unreasonable'4
- The outcome of the U.S. v. Google case may influence how this alleged exclusivity in the AI market is viewed legally4
Projected Financial Performance Context
- Upcoming Q4 earnings are projected to show an EPS of $0.44, representing a 39.73% year-over-year decline3
- Projected revenue for the quarter stands at $25.02 billion, a slight 2.66% decrease from the prior year's corresponding quarter3
- The company currently holds a Zacks Rank of #4 (Sell), reflecting near-term performance expectations3
Notable Investor Activity
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China targets US cybersecurity firms, Tesla's FSD subscription
Yahoo Finance Video
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