Tesla Expands FSD Subscription Count to Include Historical Purchases

Tesla has disclosed that 1.74 million users are active with its Full Self-Driving software, a 67% increase from one year ago. However, the composition of this figure has drawn scrutiny, as a footnote in the company's Q3 2026 shareholder letter reveals the metric follows the parameters of the 2025 CEO Performance Award. This alignment means the count encompasses both upfront purchases made in the past and current monthly subscriptions. Consequently, owners who purchased the software outright, some years prior, remain in the tally for as long as their vehicle is active.

This accounting method is significant because the 2025 CEO Performance Award includes a milestone requiring 10 million active FSD subscriptions. The award structure consists of 12 tranches, each contingent upon meeting both a market capitalization target and an operational goal. The operational list includes delivering 20 million vehicles, achieving 10 million active FSD subscriptions, deploying 1 million Optimus robots, and operating 1 million robotaxis commercially, alongside adjusted EBITDA targets. As of June 30, Tesla had determined that only one operational milestone, the 20 million delivery target, was probable.

Tesla ceased selling Full Self-Driving as a one-time purchase on February 14, 2026. Since that date, new customers in the United States can only access the technology through a $99 monthly subscription. However, the count retains all individuals who paid upfront prior to this date, at prices that reached $15,000, provided their vehicle remains active. The only category excluded from the active-subscription metric is free trials. The company reported 1.28 million active subscriptions in April under this same definition.

The definition of these figures extends beyond the subscription count. The company's cumulative deliveries figure, reported at 10.2 million, also incorporates any unsupervised Robotaxis placed into commercial operation. This approach mirrors the requirements of the pay package, which includes a milestone for 20 million vehicles delivered. Tesla has not provided a breakdown of how many of the 1.74 million counted individuals actually pay the $99 monthly fee versus those who purchased the software outright.

Tesla also reported that over 75% of new deliveries in North America included FSD subscriptions during the third quarter, describing this as a nearly twenty percentage point sequential increase. The company stated it believes FSD is driving demand in markets where it is available. The shareholder letter does not specify whether this figure includes subscriptions initiated with introductory offers or provide data on retention rates for these buyers after several months.

Tesla added 260,000 net FSD subscriptions in Q3, marking its strongest quarter to date. At this specific rate, reaching the 10 million subscription milestone required by the pay package would take approximately eight years. If the company maintains the pace seen over the last 12 months, which averages about 700,000 new subscribers annually, the timeline extends to roughly 12 years. The CEO Performance Award remains active until 2035.