Tesla wants autonomy software to become its next profit engine
Subscriptions to Full Self-Driving could deliver margins that car sales cannot, analysts say.
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1.7M
active FSD subscriptions globally, up 67%
Image: Ars Technica
1.7Mactive FSD subscriptions globally, up 67%
The short version
- Tesla now has 1.7 million active FSD subscriptions globally, up 67 percent from a year ago.
- The company has not disclosed how much recurring revenue FSD generates. It costs $99 a month in the US.
- Car sales still generate 75 percent of Tesla's total revenues, according to the article.
- Tesla has yet to win approval for its fully autonomous version of FSD, while its supervised version is approved in the Netherlands and several other European countries.
Why it matters
The shift from vehicle sales to software and AI services is a key test of how AI products can earn money in the car industry. For developers, the regulatory path for autonomous driving in Europe will shape how fast these systems reach customers. A proposed merger with SpaceX could also put Tesla's AI spending under a broader structure.
“The biggest driver for demand is Full Self-Driving. And today, there’s really no competitor for FSD in any car that you can buy,”