The shift highlights how automakers are turning software into recurring revenue as vehicle margins face pressure. BizTrendWire Insight
Elon Musk said Tesla will change how customers buy its Full Self-Driving software.
The company will offer the feature through a monthly subscription.
The subscription will begin on Feb. 14, Musk said.
Therefore, customers will no longer need to pay a large upfront fee.
Tesla currently sells Full Self-Driving as a one-time purchase.
Meanwhile, the price has risen over the years.
A monthly plan spreads the cost over time.
As a result, more drivers may try the software.
Full Self-Driving supports steering, braking, and lane changes.
Despite the name, it does not make cars fully autonomous.
Tesla has focused on software to boost revenue.
In addition, subscriptions provide recurring income.
Other automakers already use monthly software fees.
Therefore, Tesla’s move follows an industry trend.
Regulators continue to monitor self-driving claims.
Meanwhile, safety reviews remain ongoing.
Musk said Tesla will keep improving the system.
However, he did not share subscription pricing details.
Source: Reuters
