Tesla's Big Shift: From One-Time Buy to Monthly Fee for Self-Driving Tech

Tesla has made a significant change to how customers can access its advanced driving features. Starting soon, the company will no longer offer its Full Self-Driving (FSD) software as a one-time purchase. Instead, customers will need to pay a monthly subscription fee. This move comes after Tesla faced pressure from regulators to change how it markets its driving assistance systems. New Tesla cars will now come with a basic feature called Traffic Aware Cruise Control. This feature helps maintain a safe distance from other vehicles and keeps a set speed. However, Autosteer, which worked with cruise control to keep the car centered in its lane, is no longer included as a standard feature. This change follows a warning from California's Department of Motor Vehicles. They gave Tesla a deadline to change its marketing practices or risk losing its sales license. One major issue was the use of the term "Autopilot, " which regulators believed misled customers into thinking the system could drive the car on its own.For years, Autopilot has been a key selling point for Tesla vehicles. However, the company has always warned that the system requires the driver to stay alert and in control. Despite this, many customers have been willing to pay extra for the advanced features. Tesla's CEO, Elon Musk, has stated that the subscription price for FSD will increase over time. As the software improves, the company expects it to become a major source of profit. Currently, only a small percentage of Tesla customers have paid for the FSD software. This shift to a subscription model is a big deal. It changes how customers access and pay for advanced driving features. It also raises questions about the future of self-driving technology and how companies will monetize it.