Tesla discontinues Autopilot, shifts to Full Self-Driving subscription model in US and Canada

Tesla on January 23 announced the discontinuation of its basic driver-assistance system, Autopilot, in the U.S. and Canada, replacing it with a subscription-based Full Self-Driving (FSD) model. The move follows Tesla's decision last week to end one-time FSD purchases starting February 14, pricing the monthly subscription at $99. New vehicles will now only include Traffic Aware Cruise Control, omitting features like Autosteer. This shift comes amid pressure from California regulators, who required Tesla to stop using the "Autopilot" name due to concerns about misleading consumers into believing the system supports autonomous driving. CEO Elon Musk indicated that FSD subscription prices would increase as capabilities improve. CFO Vaibhav Taneja noted in October that only 12% of Tesla customers had previously purchased FSD software. The change aligns with Tesla's broader strategy to monetize advanced driving technology through recurring revenue streams. (Reporting by Akash Sriram; Editing by Tasim Zahid and Arun Koyyur)