Tesla has announced that it will transition to a subscription model for its Full Self-Driving (FSD) software, which will now be available for a monthly fee of $99 instead of the existing one-time payment of $8,000. This decision is reportedly aimed at providing more flexibility to customers and adapting to the ongoing regulatory scrutiny surrounding Tesla's driving assistance systems. The FSD, branded now with 'Supervised' to emphasize driver responsibility, requires continuous attention from the operator, which reinforces the idea that full autonomy is not yet achieved in Tesla vehicles.

The change in payment structure comes amid a backdrop of an ongoing investigation by the U.S. National Highway Traffic Safety Administration (NHTSA) into Tesla's FSD systems, which are under scrutiny for safety concerns. The NHTSA commenced this investigation last year, affecting approximately 2.88 million vehicles equipped with this driving assistance feature. This regulatory watch has prompted Tesla to enhance its communication regarding the capabilities and limitations of its systems, ensuring customers are aware of the need for vigilance while using these technologies.

The integration of a subscription fee is a significant shift for Tesla, indicating a potential move towards recurring revenue models in the automotive industry. As companies increasingly look for stable income streams, this strategy could allow Tesla to tap into a broader base of consumers who might prefer lower upfront costs. However, the practicality and reception of FSD through subscriptions will be crucial to its success, especially given the current regulatory environment and consumer expectations for safety and reliability in autonomous driving technologies.