Tesla Buyers in US and Canada Face New Monthly Fee for Highway Assist Technology

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Tesla Hit by EV Sales Decline, Reports Another Disappointing Quarter
A Tesla dealership is seen on December 13, 2023 in Austin, Texas. Tesla is recalling nearly all vehicles sold in the US after a near two-year investigation by the National Highway Traffic Safety Administration found a defect in the Autopilot system. Brandon Bell/Getty Images/Getty Images

Tesla has quietly changed how it delivers driver-assistance features in the United States and Canada, requiring new buyers to pay a monthly subscription for technology that was once standard.

Starting this week, new Tesla owners will only get Traffic Aware Cruise Control (TACC), which automatically adjusts speed to keep a safe distance from other vehicles.

However, Autosteer—a feature that keeps cars centered in highway lanes—will no longer come with new vehicles.

To access lane-centering and other advanced driving functions, buyers must subscribe to Tesla's $99-a-month Full Self-Driving (FSD) package, Reuters reported.

Until recently, Autosteer was included in Tesla's standard Autopilot package, which also allowed for lane changes with Enhanced Autopilot.

Now, the automaker is pushing customers toward a subscription model, a move seen as part of Tesla's effort to generate recurring revenue from its autonomous driving software.

CEO Elon Musk has made boosting revenue from artificial intelligence-driven vehicle technology a key focus, especially as sales of Tesla's older electric vehicle models slow.

"The subscription price for FSD will rise over time as the software's capabilities improve," Musk said, reinforcing the company's strategy to monetize advanced features gradually.

Tesla Ends $8,000 One-Time FSD Purchase

Tesla CFO Vaibhav Taneja previously noted that only about 12% of Tesla buyers had paid for FSD, even though the company aims to reach 10 million subscriptions over the next decade.

Starting February 14, Tesla will also stop offering FSD as a one-time $8,000 purchase, making the subscription the only way to access the technology.

The change has drawn criticism from some Tesla owners. One user wrote on social media, "A lot of people (including myself) subscribe to FSD just for road trips and rely on basic Autopilot for everyday commuting. Honestly, it's disappointing."

The update affects Model 3 and Model Y vehicles. Customers configuring these models online now see only TACC listed at the final purchase step, though older Tesla documentation still shows Autosteer.

According to IE, buyers can try a 30-day FSD trial, but ongoing use requires paying the monthly fee.

Industry analysts say the move aligns with a broader trend in the auto sector to sell software as an ongoing service rather than a one-time add-on.

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Tesla, Canada, US

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