Tesla Reports 1.74M FSD Subscriptions Using CEO Pay Package Definition

1.74 million. That is the number of active Full Self-Driving subscriptions Tesla reported for its third quarter ending September 30, 2026. This figure marks a 67% increase compared to the same period last year, showing significant growth in the company's software adoption. The company provided details on how this total was calculated in a footnote within its shareholder letter, stating that the metric follows the framework established by the 2025 CEO Performance Award. This specific definition dictates the inclusion of both upfront payments and monthly recurring subscriptions within the active count.

The primary reason for this specific counting method relates to executive compensation. The 1.74 million figure is calculated to align with the requirements of the 2025 CEO Performance Award. This compensation package includes 12 distinct tranches, each requiring the achievement of specific market capitalization and operational targets. One of these operational milestones is reaching 10 million active FSD subscriptions. Consequently, the definition includes individuals who purchased the software outright in a single payment, regardless of when the transaction occurred. This contrasts with the current sales model; Tesla ceased selling FSD as a one-time purchase on February 14, 2026. Since that date, new customers in the United States can only access the feature via a $99 monthly subscription. However, previous buyers who paid upfront prices reaching $15,000 remain in the active count as long as their vehicle is active. Free trials are the only category excluded from this total.

This reporting method is not unique to the FSD count. Tesla’s cumulative delivery figures, now standing at 10.2 million, utilize a similar approach. The company includes any unsupervised Robotaxis placed into commercial operation in this calculation. This methodology aligns with the 2025 CEO Performance Award, which sets a milestone for 20 million vehicles delivered. As of June 30, 2026, Tesla indicated that it considered only one of the operational milestones—reaching 20 million deliveries—to be probable.

Regarding the specific growth of these subscriptions, Tesla added 260,000 net FSD subscriptions during the third quarter of 2026. This represents the highest quarterly increase recorded by the company to date. Despite this record pace, reaching the 10 million subscription target required for the CEO Performance Award would take considerable time. At the current rate of 260,000 additions per quarter, it would take approximately eight years to reach the target. If calculated based on the growth seen over the last 12 months, which averages 700,000 additions per year, the timeline extends to closer to 12 years. The CEO Performance Award remains active until 2035.

Tesla also reported that more than 75% of new deliveries in North America included FSD subscriptions in Q3 2026, describing this as a nearly twenty percentage point sequential increase. The company stated its belief that FSD is driving demand in markets where it is available. However, the shareholder letter does not specify how many of the 1.74 million active accounts are paying the $99 monthly fee versus those who paid upfront in previous years. The company has not provided details on retention rates for the subscriptions initiated during the quarter.