Tesla's Luxe Package Now Only Includes FSD License for Original Owner

As the effects of Tesla’s Valentine’s Day shift to a subscription-only model for FSD become clearer, the fine print is revealing some significant changes.

When the $8,000 upfront FSD purchase option was discontinued, the Luxe Package — standard on the 2026 Model S, Model X, and Cyberbeast — appeared to be the last way to acquire FSD outright. A quiet update to Tesla’s terms on its website and in purchase agreements, however, introduces a condition that meaningfully affects the long-term resale value of these flagship models.

Fine Print Changes

Prior to the February 14th deadline, the Luxe Package rules were somewhat fragmented. In private sales, perks like Free Unlimited Supercharging and Premium Connectivity would not carry over, but the bundled FSD license stayed with the vehicle and transferred to the next owner.

That has now changed. According to the new terms, for any Luxe Package vehicles ordered after February 14, 2026, the included FSD is strictly non-transferable to subsequent owners. FSD is now limited to the original owner, similar to Free Unlimited Supercharging and Premium Connectivity. Other Luxe benefits, including four-year maintenance, windshield coverage, and tire protection, will still transfer to future buyers.

Once the car is sold, FSD access is removed, and the new owner will need to subscribe.

In effect, the Luxe Package no longer conveys ownership of an FSD license; instead, it functions as a free lifetime subscription tied to the first buyer of the vehicle.

Resale Reality Check

This shift is a substantial hit to the secondary-market value of Tesla’s most expensive vehicles.

Historically, having FSD tied to a vehicle’s VIN allowed sellers to command significant premiums. Now, a 2026 Model S or Model X is poised to lose a notable portion of its residual value as soon as the title is transferred and Tesla completes the ownership change.

Incoming owners will receive a vehicle without FSD functionality unless they pay the $99/mo subscription fee.

Pushing for Subscriptions

While disappointing for buyers who counted on FSD to bolster resale value, the change aligns with Tesla’s strategy.

The Valentine’s Day update wasn’t only about ending upfront FSD purchases for the Model 3 and Model Y; it was a broader move to phase out perpetual FSD licenses across the lineup.

By making the Luxe Package’s FSD non-transferable, Tesla ensures the secondary market will eventually run dry of permanent FSD titles — even if that may be 20 years down the road.

In the near term, second-hand Tesla buyers who want autonomy features will be pushed into a monthly subscription, reinforcing steady, recurring software-as-a-service revenue.