Tesla bets on AI and software as its next profit engine

Tesla is shifting its business model from vehicle sales toward recurring revenue from software and AI services. FSD now has 1.7 million active subscriptions globally, up 67% year over year, at $99 a month in the US, while Musk explores a possible merger with SpaceX.

• Over 75% of new Teslas sold in North America include supervised FSD
• 1.7 million active FSD subscriptions worldwide, up 67% year over year
• Sales target cut from 20 million to 5 million vehicles a year
• A SpaceX merger could give Musk control of 50%+ of the combined company