Tesla Australia is transitioning to a subscription-only model for its Full Self-Driving (Supervised) software, effective April 1, 2026. This mirrors a change already implemented in the US market and means customers will no longer be able to purchase the advanced driver-assistance system outright. The upfront cost of FSD Supervised currently stands at $10,100 and is only available for vehicles with Hardware 4.
Key Changes for Tesla Buyers
The deadline to order a new Tesla and take delivery with FSD Supervised paid upfront is March 31, 2026. After this date, the only option will be a monthly subscription priced at $149 (NZ$159 in New Zealand). This shift impacts both new purchases and transfers of existing FSD Supervised licenses, as those will also end on March 31, 2026.
Tesla hasn’t announced when older vehicles (Hardware 2 and 3) will be eligible for FSD Supervised upgrades. The move makes the system accessible to a wider range of Tesla models, including the base Model 3 Premium ($54,900) and Model Y Premium ($58,900), which already include Basic Autopilot.
How FSD Supervised Works
FSD Supervised is a Level 2 driver-assistance system that handles curves, intersections, and pedestrian detection using Tesla Vision – a camera-only approach. Unlike some competitors, Tesla doesn’t rely on radar or LiDAR for this feature. The system allows hands-free driving, but requires full driver supervision.
Tesla monitors driver attentiveness through an in-cabin camera that cannot be disabled. The system will issue warnings if it detects inattentiveness and will eventually stop the car if ignored, ensuring driver engagement. Five “strikeouts” (system disengagements after warnings) will result in the feature being suspended for the remainder of the trip.
Why This Matters
The transition to a subscription model aligns with Tesla’s broader strategy of recurring revenue. While upfront purchases provide immediate cash, subscriptions offer a predictable income stream, making the technology accessible to more drivers over time. The company’s local testing of FSD Supervised, including Melbourne hook turns, demonstrates its commitment to adapting the system to unique Australian driving conditions.
This shift reflects a move towards software-as-a-service, where Tesla retains control and continues to refine FSD Supervised through updates and data collection.
This change may influence buyer decisions, particularly those who prefer outright ownership. However, the subscription model could prove more attractive for drivers wanting to try the system before committing or who prefer predictable monthly costs.
