Tesla is set to conclude its complimentary Full Self-Driving (FSD) transfer service by the end of March. This decision marks a significant shift in the company's approach to its advanced driver-assistance system, transitioning towards a subscription-only model, a move that has sparked considerable discussion within the automotive and technology sectors.
According to information shared by influencer Sawyer Merritt on the social platform X, customers who wish to utilize the free FSD transfer must finalize their new vehicle orders no later than March 31. This deadline is critical, as orders placed by this date will still be eligible for the transfer, even if the vehicle delivery takes place after March 31.
This initiative builds upon a program Tesla introduced in April 2025, which allowed existing FSD owners to migrate their software license to a new Tesla vehicle without incurring additional costs. This was a valuable incentive for customers looking to upgrade their vehicles while retaining access to FSD capabilities, which represent a substantial investment.
The announcement closely follows statements from Tesla CEO Elon Musk, indicating that the option for a one-time upfront payment for FSD, currently priced at $8,000, will cease after Valentine's Day. Moving forward, FSD will be exclusively available through a monthly subscription model, priced at $99. This strategic pivot raises questions regarding its underlying motivations.
Speculation suggests a possible connection to Musk's extensive compensation package, which includes milestones tied to Tesla's performance, such as achieving 10 million active FSD subscriptions. This shift could be a direct measure to boost subscription numbers and, consequently, align with these ambitious corporate targets.
According to Benzinga Edge Rankings, Tesla demonstrates strong performance in terms of quality and maintains a positive price trajectory over the medium and long term. On January 16, Tesla's stock experienced a minor dip of 0.24% at market close, settling at $437.50, followed by a further marginal decline of 0.01% in after-hours trading, reaching $437.44.
The impending conclusion of the free FSD transfer window underscores Tesla's evolving business strategy, prioritizing recurring revenue streams through subscriptions. This change could impact customer acquisition and retention, as the long-term cost of FSD ownership transitions from a one-time expense to an ongoing monthly commitment. Existing FSD owners considering a new Tesla purchase are encouraged to act swiftly to take advantage of the remaining transfer eligibility before the March 31 deadline.