Tesla Shifts FSD to Subscription-Only Model as BYD Overtakes in EV Sales
Tesla has eliminated the one-time purchase option for its Full Self-Driving (FSD) feature, moving exclusively to a $99 monthly subscription. Despite its name, FSD requires constant driver supervision and frequent manual intervention. The shift underscores Tesla's strategic pivot toward recurring revenue streams as it focuses on AI-driven projects like robotaxis and humanoid robots.
Meanwhile, BYD has dethroned Tesla as the world's top seller of fully electric vehicles. Tesla's Q4 2025 deliveries fell 16% year-over-year, with annual sales dropping 9% to 1.64 million units. BYD delivered 2.26 million EVs during the same period. The reversal follows the expiration of U.S. EV tax credits and reflects Wall Street's growing valuation of Tesla based on AI potential rather than automotive volumes - analysts have slashed 2026 delivery forecasts from 3 million to 1.8 million vehicles.
