Tesla has removed its Autopilot feature as a standard offering for new Model Y and Model 3 vehicles in the United States, a move widely seen as part of CEO Elon Musk’s strategy to push customers toward the company’s Full Self-Driving (FSD) subscription service.
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According to Tesla’s official website, new orders for the entry-level versions of the two popular models will now include only Traffic-Aware Cruise Control. The feature allows vehicles to automatically adjust speed based on surrounding traffic but does not provide lane-keeping or steering assistance.
Tesla dropping Autopilot as a standard feature is a bad move. New Teslas now come with only TACC, no Autosteer, unless you pay $100 a month for the FSD subscription.A lot of people (including myself) subscribe to FSD just for road trips and rely on basic Autopilot for everyday… pic.twitter.com/cR7wdtl5vT
— Mark’s Tech📱 Tech Reviews – Tech News (@Marks_Tech) January 23, 2026
Previously, Tesla’s Autopilot package combined Traffic-Aware Cruise Control with Autosteer, enabling vehicles to stay within lanes and perform limited lane changes when drivers used turn signals. The removal marks a notable downgrade in standard driver-assistance capabilities for new buyers in the US market.
Tesla has not clarified whether the decision is linked to recent regulatory scrutiny in California, where the company’s dealer licence was suspended following a ruling that found Tesla had engaged in misleading marketing related to Autopilot and FSD claims. The ruling includes a 60-day stay, allowing Tesla time to revise its marketing practices.
The change comes shortly after Musk announced a shift in pricing strategy for Full Self-Driving, replacing its previous one-time fee of $8,000 with a subscription model costing $99 per month. Musk has said the price of FSD will increase as its capabilities expand, particularly once the system can enable fully autonomous travel without driver supervision.
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Tesla’s growing emphasis on FSD aligns with Musk’s long-term vision of an autonomous future, including robotaxis and self-driving fleets. However, the company continues to trail rivals such as Alphabet’s Waymo, which has already deployed commercial robotaxi services in several US cities.