Tesla restructures Autopilot features, expands subscription model

New Tesla buyers must subscribe to the company’s $99-per-month Full Self-Driving software to access self-steering features as the automaker prioritizes recurring AI revenue.

On the Dash:

• Tesla removed Autosteer from standard features, shifting advanced driver assistance to a $99 monthly subscription.
• The move supports Tesla’s strategy to grow recurring AI and software revenue amid slowing growth in EV sales.
• Customer backlash and regulatory pressure add complexity to Tesla’s transition away from bundled features.

On Jan. 22, Tesla stopped including certain driver-assistance features, including Autosteer, as standard equipment on new vehicles sold in the U.S. and Canada, requiring customers to pay a $99 monthly subscription to regain access.

Under the change, new Tesla vehicles will continue to include Traffic Aware Cruise Control, which maintains a set speed and follows traffic at a safe distance, according to the company’s online vehicle configuration pages. However, Autosteer,  which keeps vehicles centered in a lane on highways, is no longer standard.

Vehicles will continue to come standard with Traffic Aware Cruise Control, which maintains a set speed and follows traffic at a safe distance. Autosteer, a feature that keeps vehicles centered in highway lanes, is now available only through Tesla’s Full Self-Driving (Supervised) subscription. The EV maker has also discontinued the Autopilot and Enhanced Autopilot packages, which previously offered similar capabilities.

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The shift aligns with CEO Elon Musk’s broader push to generate more revenue from artificial intelligence-driven software as sales of Tesla’s aging electric vehicle lineup soften. Musk has said increasing Full Self-Driving subscriptions is a long-term priority to reach 10 million subscribers over the next decade.

Customers who subscribe to Full Self-Driving gain additional features, including limited navigation on city streets, while driver monitoring remains mandatory. Tesla will eliminate the one-time $8,000 purchase option for Full Self-Driving beginning Feb. 14. 

Elon Musk has said the monthly price will rise over time as the software’s capabilities improve. Conversely, about 12% of Tesla customers currently pay for Full Self-Driving, and Musk aims to greatly expand that number as part of his compensation plan.

Some Tesla owners have also criticized the changes, noting they relied on basic Autopilot features for daily driving and only used Full Self-Driving for longer trips. Nevertheless, the company’s alterations follow scrutiny from regulators, particularly in California, where officials questioned whether terms like “Autopilot” could mislead consumers about the system’s capabilities.