Tesla Removes Autopilot Feature in US and Canada
Tesla has recently made significant changes to its Autopilot feature in the United States and Canada. The company has discontinued its basic driver-assistance system, which has been a core selling point for its vehicles.
Tesla Removes Autopilot Feature in US and Canada
On January 23, 2023, Tesla announced the decision to remove the basic Autopilot system. This strategic move aims to direct customers toward the more advanced Full Self-Driving (FSD) feature, which requires a subscription.
Subscription Model for Full Self-Driving
- Starting February 14, 2023, FSD will only be available as a subscription.
- The monthly fee for FSD is set at $99.
- Prior to this change, customers could purchase FSD for a one-time fee of $8,000.
Tesla’s online configurator now indicates that new vehicles will only include Traffic Aware Cruise Control. This feature maintains speed and ensures safe following distances but lacks the advanced capabilities previously associated with Autopilot.
Regulatory Pressure and Marketing Changes
The decision to discontinue Autopilot follows rising regulatory scrutiny. California’s Department of Motor Vehicles imposed a 60-day deadline for Tesla to revise its marketing strategies. Failure to comply could result in a 30-day suspension of its retail sales license.
One condition set by the regulators is to discontinue using the term “Autopilot.” Authorities argue that this name misleads consumers into believing the system offers full autonomous driving capabilities.
Future Trends and Market Implications
Tesla’s CEO, Elon Musk, stated that the subscription cost for FSD will increase as the technology evolves. The subscription model is projected to become a substantial profit stream for the company as its features expand. However, CFO Vaibhav Taneja highlighted that only 12% of Tesla customers had opted for the FSD software as of October 2022.
This shift in strategy not only reflects Tesla’s response to regulatory challenges but also its ongoing pursuit of enhancing its technological offerings and subscription-based revenue model.
