Tesla’s “Full Self-Driving” Shifts to Subscription Model in Australia
Tesla is set to phase out the option to purchase its advanced Full Self-Driving (FSD) Supervised software outright in Australia and New Zealand. Starting from April 1, 2026, Australian customers will only be able to access this cutting-edge technology through a monthly subscription. This significant shift mirrors a similar change already implemented in the United States.
The subscription will be priced at $AU149 per month. FSD Supervised is Tesla’s most sophisticated driver-assistance system, designed to allow the vehicle to navigate most driving scenarios with the driver’s hands off the wheel, provided their eyes remain on the road.
Currently, Tesla Australia has confirmed it will not follow the US in removing lane-centring assist from its standard features. This technology, which helps keep the vehicle centred in its lane, is a common feature even in more affordable cars like the Kia Picanto.
Key Dates and Purchase Information
Customers looking to purchase FSD Supervised outright must place their order and take delivery of their new Tesla by March 31, 2026.
- Existing Orders: The status of orders placed in March for Teslas with the FSD Supervised option, but which are not delivered until April 2026, remains unclear. It is possible that the technology may be removed from these vehicles, with a refund of the purchase price issued. Tesla Australia has been contacted for clarification on this matter.
- Hardware 4 Owners: Tesla owners with vehicles equipped with ‘Hardware 4’ cameras – including Model 3s updated since September 2023 and Model Ys manufactured since late January 2024 – who have not yet purchased FSD Supervised outright, have until March 31, 2026, to do so.
Legacy Hardware and Future Updates
A substantial number of Tesla owners in Australia who purchased the FSD Supervised upgrade since its introduction in 2017 possess vehicles equipped with the older Hardware 2 and Hardware 3 camera systems. These vehicles are currently unable to utilise FSD Supervised on local roads. Tesla has previously committed to providing a free update for these vehicles once the software is optimised for use with the older hardware in Australia.
This move away from outright purchases of FSD Supervised follows similar announcements made by Tesla in the US, where the change took effect after February 14, US time.
Promotional Offers Ending
Two significant promotional offers are also set to conclude on March 31, 2026:
- Free FSD/Enhanced Autopilot Transfers: A current promotion allowing for the free transfer of FSD or the lesser Enhanced Autopilot software from an existing Tesla to a newly ordered vehicle will end.
- Order and Delivery Deadline: Similar to the outright purchase of FSD, customers eligible for this transfer promotion must order and take delivery of their new vehicle by the end of March 2026.
Tesla has indicated that such promotional offers will not be re-introduced in the future.
Rapid Adoption of FSD Supervised
Full Self-Driving Supervised was made available to Australian and New Zealand owners of ‘Hardware 4’ equipped cars in September 2025. In a testament to its adoption and the interest it generated, the system collectively covered over one million kilometres of driving in less than two weeks of its release in these regions.
The transition to a subscription-only model for Tesla’s most advanced driving assistance technology signifies a broader industry trend towards recurring revenue models for software-intensive vehicle features. This approach allows manufacturers to continuously develop and update the software, offering ongoing improvements to subscribers. For consumers, it presents a more accessible entry point to advanced features, albeit with a long-term cost commitment.
