Tesla removed Autosteer and other driver-assistance features as standard equipment in the U.S. and Canada. Access now requires customers to subscribe to the Full Self-Driving (Supervised) package. This subscription costs $99 per month. Traffic Aware Cruise Control remains standard. The change unbundles features previously included in the basic Autopilot offering.
CEO Elon Musk implemented the strategy to generate recurring revenue from AI and autonomous driving technologies. This pivot occurs as electric vehicle sales growth slows. The decision follows the company's announcement that it will end the one-time purchase option for Full Self-Driving in February.
Customers expressed disappointment on social media. They relied on the basic Autopilot for daily commuting and now face a monthly fee for the same functionality. This strategic pivot emphasizes the company's focus on software and services as a key future revenue driver.