Tesla has removed its long-standing free Autopilot steering assistance from new vehicles, leaving buyers with only a basic cruise control feature unless they pay extra for its Full Self-Driving (FSD) software, as the electric carmaker shifts its focus toward subscription-based revenue.
Under the change, new Tesla models now come with Traffic-Aware Cruise Control, which adjusts speed based on surrounding vehicles but does not include Autosteer, a function that had previously been bundled for free. Customers who want steering assistance must subscribe to FSD for $99 per month, a move that has drawn criticism from some buyers who see it as a downgrade in standard features.
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The decision has highlighted contrasts with rival automakers. Toyota’s Safety Sense package, offered on vehicles such as the RAV4 that are priced significantly below Tesla’s Model Y, includes features such as lane centering, pedestrian detection and road sign recognition at no additional cost.
Tesla Chief Executive Elon Musk has continued to promote the future value of advanced driver-assistance technology ahead of the company’s upcoming earnings call. Referring to the rollout of unsupervised robotaxi operations in Austin, Musk said, “The massive value jump is when you can be on your phone or sleeping for the entire ride,” signalling higher prices for future versions of the software.
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Tesla will continue offering both the $8,000 one-time FSD purchase and the $99 monthly subscription until Feb. 14, after which only the subscription option is expected to remain. Analysts and owners remain divided on whether the shift to a subscription-only model will boost long-term revenue, as some drivers may choose to pay only intermittently or opt out altogether.
Source: Tesla