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Tesla drops Autosteer from Standard Model 3 and Model Y to drive FSD sales

© A. Krivonosov
Tesla removed Autosteer from Standard Model 3 and Y, shaving $5,000 but nudging buyers toward $8,000 Full Self-Driving. Analysts call it a high-risk bet.
Michael Powers, Editor

Tesla has come under fire after rolling out lower-priced Standard versions of the Model 3 and Model Y. To cut roughly $5,000 from the price, the company dropped Autosteer, a core Autopilot function. According to blogger Everyday Chris, Tesla indicated the change is intended to steer more buyers toward the Full Self-Driving package, priced at $8,000 or available by subscription at $99 per month.

As a result, the base cars now require manual control unless the driver pays for the more advanced features. Tesla had not previously removed Autosteer from a configuration after launch, a turnabout that sparked a wave of criticism on social media. For a mass-market trim, stripping out lane-keeping makes the savings feel less straightforward.

Experts say the manufacturer is trying to offset thin margins on budget models by selling software-based capabilities. Analysts, however, doubt that buyers of cheaper Teslas are ready to spend thousands on an autopilot system that remains unfinished. The move reads like a high-risk experiment—an attempt to turn a limitation into a sales lever.