Tesla changes FSD transfer rules and launches FSD v14 Lite, sparking Korean market concerns

Tesla announced that its Full Self‑Driving (FSD) transfer program will be altered, requiring customers who purchase the upcoming low‑cost Cybertruck to pay an additional $20,000 to move their existing FSD subscription to the new vehicle. The change, set to take effect on February 28 2026, has triggered criticism in South Korea over the lack of advance notice and potential erosion of consumer trust.

At the same time, Tesla began rolling out a new lightweight version of its autonomous‑driving software, FSD v14 Lite, to vehicles equipped with the third‑generation hardware platform introduced in 2019. The update, which will reach roughly 4 million older models, adds features such as automatic driving from a parked state and speed‑profiling controls, effectively delivering most of the capabilities of the latest fourth‑generation FSD package. The rollout started in the United States and is expected to reach the Korean market later.

Analysts say the combined moves could reinforce Tesla’s “lock‑in” effect on existing owners while also attracting potential buyers away from domestic manufacturers. Hyundai Motor’s sales fell 11.7 % year‑on‑year through May, and the Korean market saw Tesla’s Model Y become the best‑selling vehicle in May, overtaking the Kia Sorento.