Tesla ( TSLA ) has launched a more advanced FSD (Full Self-Driving) subscription service in the United States and has removed the functionality of its Autopilot basic self-driving software as a standard feature on new Model Y and Model 3 purchases in the United States.
According to Tesla’s website, new orders of Tesla’s entry-level models no longer offer Autopilot as a standard option and now only offer traffic-aware cruise control, which is essentially an adaptive cruise control system that allows the vehicle to change speed when following another vehicle on the highway.
Previously, Autopilot provided traffic-aware cruise control and automatic steering, allowing the car to stay in the center of the lane and change lanes using turn signals.
It’s unclear whether Tesla has canceled Autopilot, as Tesla faces a ruling that its California dealer license will be revoked for deceptive marketing of Autopilot and FSD. The ruling was put on hold for 60 days to give Tesla time to comply, i.e. change its marketing practices around the software.
The change comes as Tesla CEO Elon Musk said last week that the company would stop charging a one-time $8,000 FSD fee in favor of a $99 monthly subscription service, which is already an option.
Musk said late Thursday night that the price of FSD could also rise.
“I should also mention that the $99 per month fee for a supervised FSD will increase as the FSD’s capabilities increase,” he said on X.com. “When you can use your phone or sleep during the entire trip (unsupervised FSD), the value increases significantly.”
Removing Autopilot from Tesla electric vehicles is a noteworthy move, considering that other automakers, including Toyota, offer such services as standard options in their vehicles. On the other hand, focusing on FSD may be the right choice considering that Autopilot is an older technology and, according to Musk, FSD is the future of Tesla’s autonomous driving.
Interestingly, one X.com user believes Tesla’s move to eliminate Autopilot is related to Musk’s new compensation plan, which requires FSD paying users to reach the 10 million milestone.
Tesla shares jumped yesterday when Musk announced the company would begin offering a robotaxi service in Austin without safety monitors, a long-awaited move.
Ashok Elluswamy, Tesla’s head of artificial intelligence, added on X.com that the service “will start with a few unsupervised vehicles mixed with a broader fleet of robotaxis with safety monitors that will increase over time.”