# Tesla turns to AI services for growth after BYD overtakes it in EVs

- URL: https://talkfuse.com/story/tesla-gave-up-the-ev-crown-now-it-wants-to-win-the-autonomy-race/
- Published: 2026-10-26T14:30:27+00:00
- Updated: 2026-10-26T15:29:51+00:00
- Original publisher: Ars Technica
- Original article: https://arstechnica.com/cars/2026/10/tesla-wants-ai-and-software-to-be-its-next-profit-engine/
- Topics: Software

## Key points

- Tesla is betting on autonomy subscriptions for growth.
- It has 1.7 million active FSD subscriptions worldwide.
- Wider European approval remains uncertain.

## Summary

Tesla is shifting its growth strategy towards autonomy software and AI services, which could bring in recurring revenue at higher margins than car sales. The move matters as the company has lost its position as the world’s largest electric vehicle maker to China’s BYD, while carmakers face stronger Chinese competition and seek new sources of income.

Cars still account for 75 per cent of Tesla’s revenue and help fund its AI investment. Its supervised Full Self-Driving software requires drivers to remain attentive, but more than 75 per cent of new Teslas sold in North America include it, and the company has 1.7 million active subscriptions worldwide, up 67 per cent in a year; the US price is $99 a month. Analysts say broader adoption could significantly change Tesla’s finances, though regulatory approvals remain a hurdle: the EU decision on wider rollout has been delayed until December.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.