Investor Ross Gerber, co-founder of Gerber Kawasaki, has expressed concern about Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk’s move to only offer Full Self-Driving as a subscription service starting next month.
In a post on the social media platform X on Wednesday, the investor shared that Tesla’s decision to offer FSD was “the first step” for the automaker towards “giving away the software,” which Gerber says will be “standard on vehicles over the next five years.”
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However, Gerber criticized the company’s decision to offer the FSD as a subscription. “Sadly the technology edge tesla used to have is fading,” Gerber said, adding that the “pricing decisions” could illustrate Tesla’s peers catching up to the EV giant.
This is the first step to tesla giving away the software as it becomes standard on vehicles over the next five years. Sadly the technology edge tesla used to have is fading as shown by these pricing decisions. $tsla https://t.co/DilXCpO6RL
Recently, Musk announced that Tesla would stop offering the FSD technology with a one-time payment of $8,000 and instead would only offer a $99/month subscription fee for the technology. The move could see increased adoption of the technology among customers.
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Meanwhile, Rivian Automotive Inc. (NASDAQ:RIVN) also announced it would offer the company’s autonomous driving technology as either a $49.99/month subscription or a $2,500 fee up front.
Tesla’s Model Y also became the best-selling EV of the U.S. market in 2025, according to data shared by Cox Automotive, with Tesla selling over 93,000 units of the crossover SUV in the fourth quarter.
Tesla also announced the Model Y with a 7-seater layout in the U.S., available with the Premium all-wheel drive trim for an additional $2,500. The Model Y also got a new 16-inch touchscreen infotainment display and a new headliner.
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