Tesla Shifts Autopilot Features to Subscription-Only Model, Sparking Investor Concerns
Tesla Inc. has overhauled its driver-assistance offerings, moving advanced Autopilot features to a $99 monthly subscription model. The shift eliminates standalone purchases for Autopilot and Enhanced Autopilot, requiring customers to subscribe to the Full Self-Driving (FSD) package for access to functionalities like Autosteer and city street steering.
Investors reacted cautiously, sending TSLA shares lower as markets weighed the implications of recurring software fees on adoption rates and revenue visibility. The MOVE aligns with the auto industry's broader pivot toward subscription-based monetization of advanced driver-assistance systems (ADAS), but raises questions about regulatory scrutiny of Tesla's Autopilot marketing claims.
While Traffic Aware Cruise Control remains standard, this strategic shift underscores Tesla's aggressive push into software-as-a-service revenue streams. The pricing structure may evolve, as CEO Elon Musk has hinted at potential future adjustments to the FSD subscription cost.