Elon Musk makes stunning announcement about signature Tesla feature — here are the details

Tesla made a surprising move that's sure to frustrate its customers: it announced that its much-hyped Full Self-Driving (FSD) mode will only be available via a monthly subscription moving forward. 

What's happening?

Tesla CEO Elon Musk announced that the company would be moving its FSD system behind a paywall starting on Feb. 14, according to Fast Company.

In essence, the decision gave Tesla customers a Valentine's Day gift they didn't want. 

"FSD will only be available as a monthly subscription thereafter," Musk said. 

It remained unclear how this decision would affect the mode's pricing on Tesla models going forward.

Why is Tesla's FSD subscription announcement concerning?

Musk has long touted automated driving as the company's future. 

He's invested massively in AI systems to help run it, eschewing the traditional LIDAR and cameras that most self-driving companies like Waymo use for their vehicles. 

In fact, the technology was so central to Tesla's future that initial plans for its upcoming Cybercab didn't include a steering wheel or pedals in the driver's seat, though those features may be changing. 

Previously, FSD cost $8,000 or $99 per month as an add-on feature at the point of purchase, after previously costing up to $15,000. 

Moving the system behind a permanent paywall will likely be seen as a strategy to recoup revenue after a brutal 2025, when Tesla took significant hits in both sales and revenue. 

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It's unclear how this decision will impact future models like the Cybercab, where FSD was intended to be the primary driving mode, nor how consumers might react to the news. 

What's being done about it?

For Tesla, the subscription model is a gambit; banking on customers' loyalty to the brand and desire for self-driving technology to outweigh the increased long-term cost of the system. 

If the decision pays off, it could encourage more automakers to adopt monthly subscription fees rather than charging an up-front cost for certain options, which appears less popular with consumers overall.

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