Tesla FSD subscribers approach 1.5 million as the software attachment rate reaches 55 percent of deliveries.

      Tesla's Full Self-Driving (FSD) subscribers have reached almost 1.5 million after a record increase of 200,000 in the second quarter, with 55% of North American deliveries opting for FSD upon purchase. In this quarter, Tesla delivered over 480,000 vehicles globally, marking a 56% year-over-year growth in subscribers.

      There's a noticeable shift towards the monthly subscription model, as about 45% of current FSD users are now paying the $99 monthly fee since Tesla removed the one-time purchase option on February 14. Previously, the software was sold for as much as $15,000 upfront, later reduced to $8,000 as an additional cost. This change has transformed FSD into a recurring revenue source that generates over $65 million each month at current subscription rates.

      FSD’s year-over-year subscriber growth is at 56%, and the software is now offered in 12 countries following a progressive European rollout that started in the Netherlands in April and has expanded to Lithuania, Estonia, Denmark, and Belgium. Additionally, Tesla has phased out its basic Autopilot system, so new vehicles now come standard with only adaptive cruise control unless the buyer opts for FSD.

      However, it's important to note that while these numbers are impressive, they come with a caveat. FSD is still a supervised system, which requires drivers to keep their hands on the wheel and eyes on the road at all times. The unsupervised mode is only available in Tesla's limited robotaxi fleet operating in Austin, Dallas, and Houston, where about 40 vehicles can provide rides without a human driver.

      CEO Elon Musk's compensation is linked to achieving a milestone of 10 million active FSD subscribers sustained over three consecutive months. At the current rate of approximately 200,000 new subscribers per quarter, it would take more than a decade to reach that goal unless there is a significant increase in adoption or a notable expansion of the vehicle fleet, which has nearly 10 million lifetime deliveries globally.