Tesla stock falls as FSD moves to subscription model

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As of January 14, Tesla shares are trading at $446.85, down 0.5% over the past 24 hours.

This follows the sharp rebound seen in November, with the stock now consolidating within a narrow range between $440 and $450, News.Az reports, citing foreign media.

Technical indicators offer a mixed outlook. Tesla is hovering just above the 20-day moving average, which has provided minor support in recent sessions, while the 50-day MA, near $455–460, is acting as near-term resistance. The 200-day moving average sits around $235, far below current levels. The Relative Strength Index (RSI) is around 53, reflecting neutral momentum, and the MACD shows flattened momentum, suggesting a period of consolidation. Trading volume has been lighter than average, reinforcing that neither bulls nor bears currently dominate the market.

The most notable recent development is Elon Musk’s announcement that starting February 14, 2026, Tesla will end one-time purchases of its Full Self-Driving (FSD) software. Instead, FSD will be offered only via a monthly subscription, priced at approximately $99 in the U.S. Musk stated that the subscription model better reflects the software’s ongoing improvements and encourages wider adoption. Analysts also view the move as a response to low upfront sales of FSD packages and mounting regulatory pressures.

The decision comes amid increased scrutiny of Tesla’s autonomous driving claims. The U.S. National Highway Traffic Safety Administration (NHTSA) is investigating nearly 2.9 million Teslas equipped with FSD following reports of multiple crashes. This investigation raises questions about the readiness and safety of the software and may result in reputational or operational challenges. Additionally, Musk’s long-standing claim that other automakers would license Tesla’s FSD stack has yet to materialize, with recent remarks confirming no interest from other manufacturers.

While the subscription model could generate more consistent, high-margin software revenue, adoption may remain limited if the value proposition is unclear. Delays in delivering full autonomy, originally promised years ago, continue to undermine investor confidence in FSD’s commercial potential. Tesla’s growing reliance on the platform as a revenue driver makes adoption metrics in 2026 a critical factor for investors.

News.Az