Tesla will discontinue the FSD as a one-time purchase and shift to a $99-per-month subscription starting February 14, aiming to create recurring software revenue while expanding access.

The move comes amid ongoing regulatory and safety scrutiny of driver-assistance systems, with regulators worldwide weighing how to define and govern autonomy.

FSD builds on Autopilot to offer features like lane changes, city-street navigation, traffic-signal handling, and parking assist, enhanced through over-the-air updates.

Analysts highlight potential impacts on margins and long-term autonomy strategy, with regulatory approval and user adoption as key risk factors.

The policy change has a mixed reception: it lowers upfront costs for some buyers but could raise long-term expenses for others, and regional applicability remains unclear.

Tesla has not confirmed global rollout details; regional regulatory differences are a consideration for timing and availability.

Industry observers foresee a broader shift toward software-as-a-service in autos, with regulatory hurdles and investment risk shaping the path to wider adoption.

Reuters is cited as a primary source, with coverage from Electrek, Teslarati, Engadget, and others providing context on pricing history and reactions.

The shift aims to stabilize revenue and potentially improve valuation by delivering ongoing software income and broader accessibility.

Pricing and rollout specifics remain undisclosed, but monthly pricing is expected to be pivotal for adoption and total consumer cost.

Questions remain about regional availability, such as Australia and Canada, as well as whether robotaxi enrollment will incur fees and how international rollout will affect features.

Regulatory frameworks, including EU approval for supervised FSD and potential exemptions, will influence how widely and quickly the service can be deployed.