Urgent Update: Major Tesla Incentives and FSD Purchase Options Are Expiring
If you have been eyeing a new Tesla Model 3 or Model Y, the window to lock in specific discounts and purchase options is closing rapidly. In a surprising move just ahead of their earnings call, Tesla has flagged several major incentives for expiration. Unlike the typical end-of-month push where we see benefits ramp up, Tesla appears to be pulling the plug on current deals, likely to recalibrate for future financing offers.
Here is a comprehensive review of the changes coming down the pipeline and what they mean for prospective buyers.
The List of Expiring Incentives
According to the latest updates, Tesla has set hard deadlines for several purchase perks. This is somewhat unexpected given that the quarter is still young, but it signals a potential shift in strategy as we approach February.
The most immediate changes affect inventory discounts and the ability to purchase Full Self-Driving (FSD) outright. Here is the breakdown of the critical dates you need to know:
- Upgrade Discounts ($1k-$2k off): Ends February 2nd.
- FSD $8k Purchase Option: Ends February 14th.
- FSD Transfer: Ends March 31st.
Inventory Discounts Ending Feb 2nd
The "One Free Upgrade" promotion, which has allowed buyers to find eligible inventory vehicles with discounts ranging from $1,000 to $2,000, is officially ending on February 2nd.
This incentive has been a solid way to save money on immediate delivery vehicles, including the refreshed models. The removal of this discount suggests Tesla might be preparing to reallocate those funds toward subsidizing interest rates. With high market demand for 0% financing, speculation points toward Tesla potentially swapping these cash discounts for more attractive APR offers in the near future to move the needle on sales volume.
The End of the $8,000 FSD Purchase
Perhaps the most significant and controversial update is the removal of the option to purchase Full Self-Driving for a flat fee of $8,000. This option is set to expire on February 14th (Valentine's Day).
Once this date passes, it appears new buyers will no longer be able to buy the software permanently with the vehicle. This move pushes the ecosystem entirely toward the monthly subscription model (currently $99/month). This forces a debate for current shoppers: is it better to lock in the permanent software now, or roll the dice with the subscription? If you plan to keep the car for many years, the $8k purchase might still hold value, but for many, the subscription offers lower risk.
Additionally, the FSD Transfer program, which allows current owners to move their software to a new car, requires orders to be placed by March 31st.
Market Recalibration and Inventory Levels
Why is Tesla doing this now? Looking at the inventory data, stock levels dropped due to recent FSD incentives but are beginning to creep back up.
It is highly likely that after the earnings call and into February, Tesla will introduce new incentive structures. The current strategy seems to be clearing the deck of complex discounts to potentially introduce a cleaner, financing-focused promotion (like 0.99% or 0% APR) which historically drives massive demand.
FSD in the Real World
While the pricing structure changes, owners are still putting the software to the test. A recent highlight from the community features a driver who clocked over 26,000 miles in just four months on a 2025 Model 3, utilizing FSD heavily.
Stories like this highlight why the FSD package remains a hot topic, regardless of whether it is purchased upfront or subscribed to monthly. The technology is being used extensively by high-mileage drivers, making the decision on how to acquire it even more critical before the February 14th deadline.
Final Verdict
If you are looking for cash-off discounts on inventory, you have until February 2nd to act. If you are adamant about owning FSD rather than renting it, you must purchase by February 14th. For everyone else, it might be worth waiting to see if a superior financing rate drops later in Q1.
