SAN FRANCISCO, Jan 23, 2026, 11:15 PST
- Tesla has dropped the basic Autopilot package from new orders in the U.S. and Canada, offering only adaptive cruise control as the default feature.
- Starting Feb. 14, Tesla will drop the $8,000 one-time purchase for Full Self-Driving (Supervised), switching to a subscription-only model
- California regulators are pushing Tesla to curb marketing linked to the “Autopilot” name, and this change arrives amid that pressure
Tesla has dropped its basic Autopilot driver-assistance system from new vehicle orders in the U.S. and Canada, removing the lane-centering “Autosteer” feature. Now, buyers only get Traffic Aware Cruise Control as a standard. This shift pushes Tesla further toward its Full Self-Driving (Supervised) package, which will be available exclusively by subscription starting Feb. 14, after the company ended the $8,000 one-time purchase option. The change follows pressure from California regulators to revise marketing tied to the “Autopilot” name. (Reuters)
The timing is crucial as Tesla increasingly relies on software to boost margins and stabilize revenue, even if that means removing a feature many buyers expected to be included. It also presents a new challenge: how much customers are willing to pay monthly for functions Tesla insists still need active driver involvement.
Elon Musk told the World Economic Forum in Davos that Tesla aims to secure regulatory approval for “Supervised Full Self-Driving” in Europe as early as next month, with a similar timeline possible for China. Tesla’s shares jumped 4.2% on Thursday after driverless robotaxi ride clips from Austin went viral on social media. The company is pushing software revenue growth to offset slowing car sales and rising competition, notably from China’s BYD. (Reuters)
Tesla’s North American order pages make the shift clear, especially for the popular Model 3 and Model Y. Customers still get Traffic-Aware Cruise Control included, but to use Autosteer, they now need to subscribe to Full Self-Driving. Basic Autopilot, which used to be an add-on, became standard back in 2019. (The Verge)
Traffic Aware Cruise Control works like adaptive cruise control, maintaining a set speed while tracking the car in front at a safe distance. Autosteer, which handles lane-centering and guides the vehicle through curves, has moved from being “included” to a “paid” feature.
California plays a major role in Tesla’s decision to scale back features and revise its labels. The state’s Department of Motor Vehicles has warned Tesla it risks a 30-day license suspension if it fails to revamp marketing claims that regulators believe might cause drivers to overestimate the system’s capabilities.
Musk keeps pushing the idea of “unsupervised” driving. He claims future updates might let drivers “be on your phone or sleeping for the entire ride.” Tesla has already begun deploying robotaxi versions of the Model Y in Austin that operate without human safety drivers inside, while other company vehicles provide backup supervision. (TechCrunch)
Tesla is pushing the subscription model as a key way to boost profits over time. Musk mentioned the monthly fee will increase as features get better. Meanwhile, Tesla’s CFO Vaibhav Taneja revealed that by October, just around 12% of buyers had actually paid for the Full Self-Driving software.
Tesla hasn’t clarified how much this change affects beyond new orders. Reports and the current Tesla website don’t make it clear if existing owners will lose any features. (The Economic Times)
There’s risk here. Dropping lane-centering from the base model might hurt demand just as Tesla is pushing hard to grow. It could also draw criticism if customers notice the branding promises one thing but the actual features don’t match up.
Right now, the takeaway is clear: new Tesla buyers in the U.S. and Canada get adaptive cruise control as standard. But if they want the steering assist, which was once included, they’ll have to pay extra—soon only through a subscription.
