Tesla Ends Basic Autopilot in US, Pushes FSD Subscription

Tesla Halts Basic Autopilot System

Tesla has officially discontinued its standard Autopilot driver-assistance system for new vehicle purchases in the United States and Canada. This strategic move is designed to steer customers toward the company's more advanced Full Self-Driving (Supervised) software package.

Overview of the Strategic Shift

The decision follows Tesla's recent announcement to eliminate the one-time $8,000 purchase option for its Full Self-Driving software. The company is now pivoting entirely to a subscription-based model for its advanced driver-assistance features, aiming to generate recurring revenue from its software division.

Impact on Consumers and Market

New buyers wanting advanced driver-assistance features must now opt for the Full Self-Driving (Supervised) subscription at $99 per month. This change impacts the total cost of ownership and may influence consumer purchasing decisions. For Tesla, it represents a significant step in monetizing its technology through a service-based approach.

Summary and Outlook

By removing its basic Autopilot offering, Tesla is clearly prioritizing its premium FSD software. Market analysts will now focus on the adoption rate of the new subscription model and its long-term impact on the company's revenue and profitability.

FAQ

Q: Why did Tesla discontinue basic Autopilot?
A: To encourage customers to adopt its more advanced Full Self-Driving (Supervised) system, now available via a monthly subscription.

Q: How can customers access Tesla's driver-assistance features now?
A: New customers can access advanced features by subscribing to the Full Self-Driving (Supervised) software for $99 per month.

Source: Investing.com