Tesla's Autopilot feature is now a thing of the past, as the company has decided to lock lane-keeping behind a $99/month fee. This comes as a result of Tesla's suspension of sales in California, a state that has been a major market for the company. The suspension was due to Tesla's inability to resolve deceptive marketing practices within a 60-day period, which could have been detrimental to the company's sales in the state. California is Tesla's largest market in the US, but it has been shrinking each quarter, making the suspension a significant blow. Some speculated that Tesla could change the name of Autopilot to something less misleading, but the company chose a more drastic approach. Now, drivers will have to pay for Full Self-Driving (FSD) if they want their Tesla to steer itself while they pay attention to the road. The one-time fee of $8,000 will be available until the middle of February, after which the sole option will be the $99/month FSD subscription. However, this may not be a long-term solution. Elon Musk revealed that the $99/month subscription will increase as FSD's capabilities improve, with the ultimate goal of allowing drivers to be on their phones or sleeping for the entire ride (unsupervised FSD). This shift towards recurring revenue streams is becoming a trend in the automotive industry, as Original Equipment Manufacturers (OEMs) aim to attract investors by encouraging regular payouts from customers. General Motors has already dropped Apple CarPlay and Android Automotive, and BMW has experimented with subscription services. While Tesla's high stock price may make these changes unnecessary, the company is facing declining profit margins, sales, and emissions credits, making regular cash infusions from drivers a desirable solution.
