Tesla announced on January 23, 2026, that new Model 3, Model Y, and base Cybertruck vehicles in the US and Canada will no longer include standard Autopilot features like lane-centering Autosteer, limiting free access to Traffic-Aware Cruise Control only. Advanced capabilities now require a $99 monthly Full Self-Driving (FSD) Supervised subscription, following the January 18 decision to end $8,000 one-time FSD purchases after February 14. The shift, offering new buyers a 30-day FSD trial, faces regulatory scrutiny over misleading terms and safety concerns, alongside mixed customer reactions.
This policy change, effective for new orders from January 23, removes Autopilot's core duo of Traffic-Aware Cruise Control (TACC)—which maintains speed and follows traffic—and Autosteer from standard equipment. TACC remains free, but Autosteer, city navigation, lane changes, and parking require the FSD subscription. Existing owners retain their features unaffected. CEO Elon Musk stated on X: "I should also mention that the $99/month for supervised FSD will rise as FSD’s capabilities improve. The massive value jump is when you can be on your phone or sleeping for the entire ride (unsupervised FSD)." New buyers get a complimentary 30-day FSD trial.
The move intensifies Tesla's subscription push for AI revenue, with CFO Vaibhav Taneja noting in October 2025 that only 12% of customers subscribe to FSD; Musk's compensation is tied to reaching 10 million active subscriptions. It follows softening EV sales, lost subsidies, and a two-year decline, though Tesla stock is up 9% yearly.
Regulatory pressures mount: California's DMV threatened in December 2025 to suspend sales over 'Autopilot' and 'FSD' terms deemed misleading (deadline stayed), the NHTSA is probing Autopilot, and a Florida court ruled in August 2025 it contributed to a fatal crash, awarding $249 million (Tesla appealing). Critics, including Electrek's Fred Lambert, decry it as a safety downgrade, noting rivals like Toyota Corolla and Honda Civic offer free lane-keeping.
Customer backlash includes disappointment over losing free commuting aids: "Honestly, it’s disappointing," posted X user @Marks_Tech. Others fear price hikes and suggest tiered options. Active safety like Automatic Emergency Braking and Lane Departure Avoidance stays standard. Tesla has not detailed international plans.
