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.<h2>Tesla's Software Edge Fading</h2>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 &#34;giving away the software,&#34; which Gerber says will be &#34;standard on vehicles over the next five years.&#34;However, Gerber criticized the company's decision to offer the FSD as a subscription. &#34;Sadly the technology edge tesla used to have is fading,&#34; Gerber said, adding that the &#34;pricing decisions&#34; could illustrate Tesla’s peers catching up to the EV giant.<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div><blockquote>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— Ross Gerber (@GerberKawasaki) January 14, 2026</blockquote></div></figure><h2>Elon Musk Touts FSD Subscriptions</h2>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.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.<h2>Model Y Becomes Best-Selling EV</h2>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.<figure class="wp-block-image size-large"></figure>According to Benzinga Edge Rankings, Tesla scores well on Momentum and offers a favorable price trend in the Short, Medium, and Long term.Price Action: TSLA declined 1.79% at Market close on Wednesday to $439.20, slipping 0.27% further to $438 during After-hours trading. Check out more of Benzinga's Future Of Mobility coverage by following this link.Photo courtesy: Shutterstock

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Investor Ross Gerber has raised concerns about Tesla's decision to offer Full Self-Driving (FSD) technology only as a subscription service, indicating a decline in the company's software advantage. He believes this move signals that Tesla is moving towards giving away its software, as competitors catch up. CEO Elon Musk announced the subscription model at $99/month, replacing the previous one-time fee of $8,000. Despite this, Tesla's Model Y remains the best-selling EV in the U.S., with strong sales figures reported for 2025.

- Investor Ross Gerber has raised concerns over Tesla's shift to a subscription-only model for its Full Self-Driving technology, warning it signals a decline in Tesla’s technological edge.  
- Gerber criticized this decision, suggesting it indicates competitors are catching up, as other companies like Rivian also introduce similar subscription services.  
- Despite this, Tesla's Model Y became the best-selling EV in the U.S. in 2025, highlighting its significant market presence despite recent price declines.

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Ross Gerber Warns Tesla's Technology Edge Is 'Fading' As FSD Moves To Subscription-Only Model