Tesla’s FSD Subscription Metrics Gain Spotlight as Musk’s Compensation Hinges on Growth
Tesla has broken new ground by disclosing active subscriptions for its Full Self-Driving (FSD) software, revealing 1.1 million users as of year-end 2025. This metric carries dual significance—it reflects the company's strategic pivot from one-time sales to recurring revenue streams while serving as a performance benchmark for CEO Elon Musk's controversial pay package.
The electric vehicle maker's Q4 disclosure marks a departure from its traditional opacity around FSD adoption rates. Subscriptions now grow at a measured pace, climbing just 100,000 between Q3 and the reported period. Analysts note this incremental progress leaves substantial ground to cover before reaching Musk's 10 million target—a figure tied to his full compensation eligibility.
Investors received mixed signals during the earnings call. While Tesla emphasized FSD's transition to subscription models as a long-term value driver, the announcement coincided with plans to discontinue two vehicle models. Factory space will instead accommodate robotics production, underscoring Musk's broader automation ambitions beyond automotive applications.
