Tesla makes autopilot upgrades subscription-only

Tesla will no longer include certain driver-assistance features as standard in new vehicles sold in the US and Canada, requiring customers to subscribe for US$99 per month to access functions like Autosteer and city street steering.

The company’s online configuration shows that Traffic Aware Cruise Control, which maintains speed and distance, remains included.

Tesla has stopped offering Autopilot and Enhanced Autopilot as standalone options and now requires the full self-driving (FSD) subscription for advanced features.

Tesla CEO Elon Musk has indicated that the subscription price may increase as the software improves.

California regulators had previously ordered Tesla to change its marketing practices related to Autopilot, citing concerns over consumer deception.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Tesla’s FSD revenue plan needs clearer, current disclosure

The financial impact of this strategy is still unclear, since the reported ~12% Full Self-Driving (FSD) adoption figure cited by Tesla’s chief financial officer Vaibhav Taneja was shared in October and may not reflect current conditions 1.
To project recurring revenue from Full Self-Driving (Supervised), Tesla’s $99-per-month driver-assistance subscription, the size of its FSD-capable fleet and the number of active subscribers paying $99 per month would need to be disclosed 1.
In Tesla’s Q1 2024 commentary, FSD was described as having been pushed to about 1.8 million vehicles, with roughly half using it. Those figures should be matched to take rates that vary by model and by whether customers pay through a one-time purchase or a monthly subscription 2.

Tesla’s move highlights a wider opportunity in managing vehicle subscriptions

Tesla’s subscription push puts more attention on a wider shift toward competing advanced driver-assistance systems (ADAS), features like highway lane-centering and assisted steering, sold through different payment models 3.
That split creates room for third-party platforms that help fleet managers or households track and tune feature subscriptions across brands, including Ford’s BlueCruise at $49.99 per month (or $495 annually) and GM’s Super Cruise at $25 per month (or $250 annually) 3.
The business case still turns on adoption and retention as automakers steer drivers toward recurring software fees 4.