Elon Musk announced Tesla's full self-driving subscription will cost more as capabilities improve. The $99 monthly fee for supervised FSD will increase once Tesla offers unsupervised driving, where owners can sleep or use their phones. Buyers can still purchase the software for $8,000 until February 14.

This shift to a subscription model follows years of regulatory scrutiny and lawsuits over FSD's claims. Tesla's core auto sales have cooled, making recurring software revenue critical. Musk has long touted AI and autonomy as Tesla's next growth drivers, even as the company faces pressure to deliver on promised capabilities.

Investors should watch for a timeline on unsupervised FSD, which Tesla hasn't provided. The company is testing driverless robotaxis in Austin, Texas, and plans Cybercab production in April, though initial output will be slow. The pricing change highlights Tesla's pivot toward software as a key profit center.