Full Self-Driving (FSD) is both the goal and the marquee offering at electric vehicle giant Tesla (TSLA) these days. And a recent move suggests that Tesla is eager to concentrate this new feature in its higher-end cars. As a result, Autosteer is no longer an option in both Model 3 and Model Y cars. This was not exactly welcome to shareholders, as shares slipped fractionally in Friday afternoon’s trading.
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Previously, Model 3 and Model Y buyers could get Autosteer as well as Traffic-Aware Cruise Control as part of the ordering process. But the latest updates suggest that Autosteer is officially off the menu. Autosteer is the part of the Autopilot package that allows lane centering to take place. It also suggests that Tesla’s plan to move FSD to a purely subscription package is also taking shape. There were those who believed that the move would ultimately fizzle out, as it had in the past. But removing Autosteer gives the notion a bit more weight.
Tesla also looks to raise the price of FSD as its capabilities improve, reports note. It remains to be seen how well drivers will take the idea of having to pay subscription prices along with the price of the car itself.
Coming Soon
But Tesla also looks for more markets to get access to FSD. In fact, Tesla looks for both Europe and China to approve FSD as soon as next month, a move that will hopefully generate new revenue streams for Tesla as vehicle sales go into open decline.
The hurdles are higher to get FSD approved in Europe, reports note, largely due to a “fragmented regulatory framework” that requires more points of contact with regulators. The United States, meanwhile, has one point of contact with the federal government. But Tesla seems to be focusing on the Netherlands right now; approval there will allow other European countries to recognize an exemption and allow a rollout to start.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 10 Buys, eight Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 10.52% rally in its share price over the past year, the average TSLA price target of $398.38 per share implies 10.69% downside risk.
