Dow Jones futures fell modestly early Wednesday, along with S&P 500 futures and Nasdaq futures. Wells Fargo (WFC) and Citigroup (C) reported mixed Q4 earnings before the open while Bank of America (BAC) beat. Tesla (TSLA) will soon stop selling Full Self-Driving and only offer FSD as a monthly subscription, CEO Elon Musk said overnight.
The stock market rally saw the major indexes hit record highs Tuesday, but investors are cautious ahead of more big bank earnings and key inflation data later this week.
Tesla Ends FSD One-Time Purchase
Elon Musk announced overnight that Tesla will discontinue the $12,000 one-time purchase option for Full Self-Driving capability. Instead, customers will access the software exclusively through a monthly subscription.
The change marks a significant shift in Tesla’s revenue model for its advanced driver-assistance system. Musk did not specify when the transition would occur or what the monthly price will be.
Tesla currently charges $199 per month for FSD subscriptions, though the company has adjusted pricing multiple times since introducing the subscription model in 2021.
Big Banks Post Mixed Results
Wells Fargo reported Q4 earnings that disappointed investors, with revenue falling short of expectations. The bank continues to work through regulatory issues and cost-cutting measures.
Citigroup also posted mixed results, beating on earnings per share but missing revenue targets. The bank announced plans to return more capital to shareholders through dividends and buybacks.
Bank of America bucked the trend, posting better-than-expected earnings and revenue. The bank benefited from higher interest rates and strong consumer banking activity.
Market Outlook
The mixed bank earnings and Tesla’s business model change come as investors await key inflation data later this week. The CPI report could influence Federal Reserve policy decisions.
Dow Jones futures indicated a modest decline at the open, while tech-heavy Nasdaq futures showed slightly larger losses. The market’s recent rally has left major indexes near record levels, with investors debating whether further gains are sustainable.
Tesla shares were volatile in pre-market trading following Musk’s FSD announcement. The stock has gained more than 100% over the past year as investors bet on the company’s autonomous driving technology and AI capabilities.
