Tesla’s California “Compliance” Move Is Actually a $99 Monthly Cash Grab

Tesla removes basic lane-keeping from new Model 3, Y, and Cybertruck buyers to push $99 monthly FSD subscriptions

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Al Landes Avatar

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Key Takeaways

Key Takeaways

  • Tesla removes standard Autosteer from new vehicles, forcing $99 monthly FSD subscriptions
  • California DMV only required marketing changes, not actual feature removal from cars
  • Tesla eliminates one-time FSD purchases after February 2026 to boost subscription revenue

Shopping for a new Tesla? Prepare to pay extra for lane-keeping assistance that comes standard in a Toyota Corolla. Tesla just removed Autosteer from new Model 3, Model Y, and Cybertruck purchases, forcing buyers into a $99 monthly Full Self-Driving subscription for what used to be included.

The company frames this as regulatory compliance after California’s Department of Motor Vehicles banned the misleading “Autopilot” branding. But here’s the telling detail: the DMV only demanded marketing changes, not feature removal. Tesla chose to gut actual functionality and extend these cuts nationwide.

The Regulatory Smokescreen

California wanted honest marketing, not fewer safety features.

California DMV confirmed Tesla took “corrective action” by dropping Autopilot branding to avoid license suspension. The December ruling targeted exaggerated claims about systems requiring constant human supervision.

Yet Tesla went nuclear, stripping Autosteer entirely from new vehicles while existing owners keep their software intact. This wasn’t regulatory overreach—it was corporate opportunism dressed as compliance.

Follow the Subscription Money

FSD revenue pressure drives the real strategy behind feature removal.

Tesla eliminates one-time FSD purchases after February 14, 2026, coinciding with reported demand declines and profit pressures. The timing isn’t coincidental.

Basic Autosteer now costs $1,188 annually through FSD subscriptions. Meanwhile, competitors include lane-keeping assistance standard across their lineups, from budget sedans to luxury prices.

The Premium Car with Budget Features

Tesla buyers pay luxury prices for stripped-down driver assistance.

Critics rightfully call this a “cash grab” that reduces safety standards in premium vehicles. You’re essentially buying a Tesla with Traffic-Aware Cruise Control—the automotive equivalent of getting Netflix without the ability to pause shows unless you upgrade.

This mirrors the broader subscription fatigue plaguing consumers across streaming services, productivity software, and now cars. Tesla’s transformation from innovative automaker to subscription maximizer represents everything wrong with software-defined vehicles prioritizing recurring revenue over customer value to save hundreds.

The message to Tesla shoppers is clear: what you bought yesterday costs extra today.

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