Tesla has effectively reduced standard features on its Model 3 and Model Y vehicles. The automaker announced on Thursday that it is now requiring a subscription for its Autosteer lane-centering system on new electric vehicle orders in the United States and Canada. This capability, once included at no extra cost, is being integrated into the Full Self-Driving Supervised package, priced at $99 monthly.
The decision aligns with incentives from Elon Musk's compensation plan, which shareholders ratified in November. To qualify for potential compensation up to $1 trillion, one milestone involves achieving 10 million active Full Self-Driving subscriptions.
In terms of specifics, Tesla has discontinued the Basic Autopilot option that came free with the Model 3 and Model Y, encompassing both Autosteer and Traffic-Aware Cruise Control. Traffic-Aware Cruise Control will continue as a complimentary feature, while Autosteer now demands the $99 monthly Full Self-Driving Supervised subscription. This adjustment affects only vehicles ordered after the announcement and spares current owners.
This shift precedes the transition of Full Self-Driving to an exclusively subscription-based model. Starting after February 14, the one-time purchase option of $8,000 will end, leaving the yearly expense at $1,188 for access to Full Self-Driving or solely lane centering.
Adding to the implications, Elon Musk indicated that the $99 monthly rate for supervised Full Self-Driving will eventually increase with enhancements to the technology. In a post on X, the CEO noted this without specifying a timeline or the extent of any future hike.