AI Utopianism Masks Tech Billionaires' Fear

Tesla has announced that its Full Self-Driving feature is now only available as a monthly subscription, ending the option for one-time purchases. The change, effective after February 14, requires customers to pay $99 per month for access to the system. Elon Musk revealed the shift on X but did not provide an explanation.

The feature, despite its name, does not offer full automation and still requires drivers to remain alert. Tesla's decision to move to a recurring model has raised questions about its long-term monetization strategy for autonomous technology.

In a broader context, Tesla's 2025 sales dropped by 9% year-over-year, allowing BYD to surpass it in total electric vehicle deliveries. BYD sold 2.26 million EVs in 2025, compared to Tesla's 1.64 million according to reports. The shift came after U.S. EV tax credits expired, reducing consumer demand.

Tesla's pivot to AI and robotics has been a key focus for Elon Musk. The company's revenue from energy storage rose by nearly 50% in 2025, reaching 46.7 gigawatt hours.

Why Did Tesla Make the Shift to Subscription Model?

The subscription model reflects a broader trend in tech and automotive industries, where recurring revenue is seen as more sustainable. Analysts suggest that Tesla's move is part of its strategy to monetize AI advancements, particularly in autonomous driving.

This change also aligns with Tesla's declining sales and increased focus on AI and robotaxi projects. The one-time purchase option had been available for $8,000 in the U.S., but that deal is now ending.

How Did the Market React to C3.ai's Earnings?

C3.ai reported better-than-expected results for Q2 2026, with EPS of -$0.25, compared to a forecast of -$0.33. Revenue reached $75.1 million, slightly above expectations. Despite the positive numbers, shares of C3.ai dropped 2.8% in early 2026.

The company's subscription revenue grew 16.5% quarter-over-quarter, driven by partnerships with Microsoft and Amazon Web Services. CEO Stephen Ehikian noted that enterprise AI is transitioning from experimentation to full-scale deployment.

C3.ai also faces challenges, including a non-GAAP operating loss of $42.2 million and a cash position of $675 million. The company expects revenue for 2026 to fall between $289.5 million and $309.5 million.

What Are Analysts Watching as 2026 Begins?

Palantir and C3.ai are both navigating the evolving AI landscape, but with different strategies. Palantir has positioned itself as a leader in agentic AI, while C3.ai focuses on enterprise AI solutions.

Palantir's stock recently dipped after hours following a Citi upgrade to "Buy" and a raised price target to $235. The company is expected to report Q4 2025 earnings on February 2. Analysts are closely watching whether Palantir can sustain its growth and maintain high margins.

Institutional investors remain divided on C3.ai, with mixed ratings from analysts. While some see potential for a turnaround, others remain cautious about the company's financial health and market position.

The broader AI market continues to evolve, with Palantir's AIP bootcamps and C3.ai's enterprise solutions shaping how companies adopt AI. Both companies face high expectations as investors look for clear evidence of sustainable growth and profitability in 2026.