Tesla’s Bold Move: Autopilot Axed from New Model 3 & Model Y in US and Canada
Tesla just pulled the plug on its signature Autopilot feature for new Model 3 and Model Y vehicles in North America. The change hits the US and Canadian markets immediately, stripping the standard suite of driver-assist tech from the company's most popular models.
What's Behind the Shift?
Speculation is running wild. Is this a preemptive regulatory dodge, a cost-cutting maneuver, or a strategic pivot toward a more profitable subscription model? The company isn't saying, leaving customers and analysts to connect the dots. One thing's clear: the baseline for what you get when you buy a new Tesla just got a lot simpler—or emptier, depending on your perspective.
The Road Ahead
This isn't just a feature change; it's a fundamental recalibration of Tesla's value proposition. The move could push more drivers toward the pricier Full Self-Driving (FSD) package, effectively creating a new revenue tier. It also sidesteps potential liability headaches as scrutiny around 'autonomous' claims intensifies. For an industry obsessed with adding more tech, Tesla's decision to subtract is a stark departure.
Call it streamlining, call it a step back—either way, Tesla just rewrote the playbook. And in classic Elon fashion, they did it without a memo. The market will decide if this is genius or just another way to make the quarterly numbers sing while the product itself hums a simpler tune. After all, nothing boosts margins like selling less for the same price.
Tesla’s new cars come standard with Traffic Aware Cruise Control
NEWS: Tesla has officially discontinued Autopilot in the U.S. and Canada. All new car purchases now come standard with Traffic-Aware Cruise Control.
The online configurator has now been updated to allow buyers to choose the $99/month FSD subscription, while still offering the… pic.twitter.com/I4so2m6vkk
— Sawyer Merritt (@SawyerMerritt) January 23, 2026
The driving assistance system included Traffic Aware Cruise Control and Autosteer; however, the company’s online configuration site shows that new cars now come standard only with Traffic Aware Cruise Control. The firm stated that the new capabilities will ensure cars maintain a designated speed while keeping a SAFE distance from cars ahead. The tech firm has not yet confirmed if current customers will be affected by the change.
Cryptopolitan reported last week that Tesla also revealed plans to stop charging a one-time $8,000 fee for the FSD software starting February 14. The change will enable customers to access FSD through a $99 monthly subscription.
Elon Musk revealed on Thursday that the subscription price will increase as the software’s capabilities improve. Musk is confident that new cars will enable unsupervised driving, despite texting while driving being illegal in almost all U.S. states.
“I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD).”
–Elon Musk, CEO of Tesla.
Tesla introduced the first robotaxi versions of its Model Y SUVs on Thursday in Austin, Texas. Musk revealed that the new cars will have no human safety monitoring personnel. He also called for those interested in solving real-world AI to join Tesla AI. The techpreneur argued that solving real-world AI for Optimus will be 100 times harder than cars.
The electric car manufacturer launched its robotaxis in Texas last June, which came with a safety operator in the front passenger seat. Tesla’s AI lead, Ashok Elluswamy, also revealed that not all cars will be fully driverless. Tesla confirmed that the new cars run a more advanced version of its driving software and still follow the firm’s oversight.
Tesla aims to hit 10 million active FSD subscribers by 2035
Musk has consistently maintained that adoption of Full Self-Driving software lags his expectations since the beta version launched in late 2020. The firm’s Chief Financial Officer, Vaibhav Taneja, revealed in October that only 12% of all customers had paid for the software. He also stated that Tesla’s product goal is to hit 10 million active FSD subscriptions by 2035. He said the initiative aims to align with Musk’s requirement to receive the full payout of his new $1 trillion pay package.
Tesla introduced the FSD feature in the early 2010s after partnering with Google’s autonomous-car division to leverage its technology. The car manufacturer made Autopilot standard on all of its vehicles in April 2019.
Tesla has struggled with revealing Autopilot’s capabilities since introducing the software more than a decade ago. The lack of communication and overpromised statements by Tesla led some drivers to become overly confident in the system’s abilities, resulting in hundreds of crashes.
The National Highway Traffic Safety Administration (NHTSA) reported that the company’s EVs have been involved in hundreds of crashes and at least 13 fatalities. The agency argued that Tesla’s weak driver engagement system was not appropriate for Autopilot’s permissive operating capabilities.
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