Tesla Inc. has long touted its Full Self-Driving (FSD) software as a revolutionary feature that could transform the automotive industry, promising hands-off driving and potential robotaxi capabilities. Yet, recent data reveals a stark reality: a significant portion of Tesla customers are balking at the extra cost for FSD, opting instead for base models without the premium add-on. This trend underscores broader challenges in consumer adoption of advanced driver-assistance systems, even as Tesla pushes aggressive pricing strategies and promotions to boost uptake.

In the third quarter, Tesla reported a decline in FSD revenue compared to the previous year, dropping from $326 million, according to a report from Business Insider. This dip highlights how the company’s efforts to monetize its autonomous driving tech are hitting roadblocks, with only about 12% of overall Tesla owners electing to pay for FSD, as noted in an analysis by Carbuzz. Factors like regulatory scrutiny, safety concerns, and the software’s supervised nature—requiring constant driver attention—appear to be dampening enthusiasm.

Challenges in FSD Adoption Persist Amid Pricing Experiments
Tesla’s leadership, including CEO Elon Musk, has experimented with various incentives to reverse this trend, such as free trials and subscription models. For instance, in March 2024, the company rolled out a one-month free trial of FSD to all U.S. customers, aiming to demonstrate its value and convert skeptics, per details from Reuters. Despite such moves, surveys indicate that FSD is turning away more potential buyers than it attracts, with many citing reliability issues and the high price tag as deterrents.

A August 2025 survey highlighted in CNBC found that U.S. consumers remain wary, often viewing the technology as overhyped. This sentiment is echoed in owner forums and reports, where even loyal early adopters express frustration over unfulfilled promises of full autonomy, leading some to regret their investments.

Model-Specific Take Rates Reveal Uneven Demand
Interestingly, adoption rates vary by vehicle model. Tesla’s Vice President of Vehicle Engineering, Lars Moravy, estimated in September 2025 that over 50% of Model S and Model X owners opt for FSD, a figure shared via Business Insider. These luxury segments, with higher-income buyers, show stronger uptake, possibly due to the feature’s integration into premium packages. However, for mass-market models like the Model 3 and Model Y, the numbers are far lower, contributing to the overall stagnation.

To counteract this, Tesla has made strategic changes to its design studio, incorporating FSD subscription options and free trials directly into the configurator, as reported by Notateslaapp in August 2025. Subscriptions start at $99 per month after a price cut from $199, a move detailed in earlier coverage from Teslarati in April 2024, aimed at lowering barriers and collecting more real-world data to refine the system.

Loyal Customers Feel Overlooked in Evolving Strategy
For long-time FSD purchasers, the evolving pricing landscape has bred discontent. Owners who paid $10,000 or more upfront years ago now see newer buyers accessing similar features through cheaper subscriptions or trials, leaving them feeling sidelined without compensation or upgrades, as explored in a September 2025 piece from Thedriven. This has sparked discussions in communities like Reddit’s RealTesla subreddit, where users debate the value proposition amid ongoing software bugs.

Tesla’s decision to bundle FSD as standard in some Model S and X configurations, effectively raising base prices by $10,000, has also drawn criticism. As outlined in an August 2025 report from ArenaEV, this “higher value package” risks alienating price-sensitive buyers, potentially further cooling demand in a competitive EV market.

Future Implications for Tesla’s Autonomy Ambitions
Looking ahead, Tesla’s FSD challenges could impact its broader ambitions, including the much-anticipated robotaxi network. With adoption stalled, the company may need to accelerate improvements in unsupervised driving capabilities to justify the cost. Industry insiders suggest that regulatory approvals for true autonomy, combined with competitive pressures from rivals like Waymo, will be crucial.

Meanwhile, Tesla continues to pause subscriptions during extended service visits, extending them if repairs exceed a day, according to Notateslaapp in October 2025. Such customer-friendly policies might help retain subscribers, but without broader acceptance, FSD risks remaining a niche feature rather than the mass-market game-changer Musk envisions. As Tesla navigates these hurdles, its ability to convert skeptics through demonstrable progress will determine whether FSD becomes a revenue driver or a persistent drag.