Tesla Removes Autopilot Feature in US and Canada

• Tesla removed Autopilot, its entry-level driver-assistance feature, forcing customers to upgrade to Full Self-Driving (Supervised) for automated driving capabilities
• The company is eliminating the $8,000 one-time purchase option for Full Self-Driving effective February 14, transitioning to a subscription-only model at $99 per month
• The moves represent a strategic shift to recurring revenue streams and standardization on Tesla's more advanced autonomous driving technology

Tesla Discontinues Autopilot in US and Canada, Pushes Subscription Model

Key Developments:

Tesla discontinued its basic Autopilot driver-assistance system in the United States and Canada on January 23, redirecting customers toward its more advanced Full Self-Driving (Supervised) technology. This strategic shift represents a significant change in how the electric vehicle manufacturer monetizes its autonomous driving features.

Pricing Changes:

The move coincides with Tesla's earlier announcement that it will eliminate the one-time $8,000 purchase option for Full Self-Driving, effective February 14. Following this change, customers will only be able to access the software through a monthly subscription priced at $99, creating a recurring revenue stream for the company.

Market Implications:

This transition from one-time purchases to subscription-only access reflects a broader industry trend toward software-as-a-service models in the automotive sector. The $99 monthly fee translates to $1,188 annually, meaning subscribers would need to maintain the service for approximately 6.7 years to equal the previous $8,000 upfront cost.

For existing Tesla owners who purchased Autopilot, the discontinuation means new buyers will need to opt for the more expensive Full Self-Driving subscription if they want driver-assistance features. This could impact Tesla's competitive positioning against rivals offering similar advanced driver-assistance systems (ADAS).

Business Strategy:

The shift toward subscription-based revenue aligns with Tesla's efforts to increase recurring income and improve long-term customer lifetime value. However, it may also create pricing pressure for potential buyers weighing Tesla against competitors with different monetization approaches for autonomous features.

The announcement affects only the North American market, with no mention of changes in other regions.