Tesla Autopilot Discontinued Amid California License Suspension Crisis
Tesla discontinues the Autopilot brand to resolve a California license suspension crisis. Discover why Elon Musk is shifting toward a $99 FSD subscription model.
Shaking hands while clenching a fist. According to Reuters, Tesla has officially killed its iconic 'Autopilot' brand. It's a strategic retreat to save its manufacturing and dealer licenses in California, which faced a 30-day suspension over deceptive marketing allegations.
Tesla Autopilot Discontinued to Comply with California DMV
The trouble started in December 2025, when a judge ruled that Tesla misled customers about the capabilities of its driver-assistance tech. The California DMV argued the names 'Autopilot' and 'Full Self-Driving' overstated what the cars could actually do. Tesla agreed to drop the Autopilot name to keep its licenses active. Now, new cars only come standard with 'Traffic Aware Cruise Control' on the official configurator.
The Shift to $99 Monthly FSD Subscriptions
Alongside the rebrand, Tesla is overhauling its pricing. Starting February 14, 2026, the company will axe the $8,000 upfront fee for FSD. Instead, it'll push a $99 monthly subscription. It's an aggressive move by Elon Musk to boost adoption—which sat at just 12% as of late 2025—and move toward his vision of 'unsupervised' driving.
While Tesla is testing 'Robotaxi' versions of the Model Y in Austin without human safety monitors, regulators aren't fully convinced. The NHTSA has linked Autopilot to at least 13 fatalities. The company's pivot to 'Supervised' branding highlights its struggle to balance ambition with safety requirements.
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