Tesla Inc. Launches Austin Robotaxis and Shifts FSD to Subscription

Tesla Inc. is pivoting toward software monetization by transitioning its Full Self-Driving (FSD) package to a subscription-only model starting February 14, 2026. Elon Musk announced a monthly fee of $99 for supervised FSD, noting that prices will rise as capabilities improve and the system moves toward unsupervised autonomy. Until February 14, customers can still make a one-time $8,000 purchase for lifetime access.

Simultaneously, Tesla Inc. has removed basic Autopilot—specifically the Autosteer functionality—as a standard feature for new Model 3 and Model Y vehicles in the United States and Canada. New buyers now only receive Traffic-Aware Cruise Control by default. This shift follows a ruling from the California Department of Motor Vehicles that Tesla Inc. misrepresented its software capabilities, which led to threats of license suspensions.

In January 2026, Musk declared at the World Economic Forum in Davos that self-driving cars are essentially a solved problem. He announced the launch of Robotaxi services in Austin, Texas, featuring vehicles without onboard safety monitors. While Musk claimed the service would be widespread across the U.S. by the end of the year, reports and social media footage indicated that Tesla Inc. is using a mixed fleet, with human safety monitors following driverless cars in trailing chase vehicles.

These strategic moves come as Tesla Inc. faces declining vehicle deliveries and regulatory scrutiny. The National Highway Traffic Safety Administration is currently investigating 2.88 million FSD-equipped vehicles, and the company recently faced a $249 million legal judgment in Florida over a fatal Autopilot crash.