Tesla stock falls 2.5% as company drops Autopilot in U.S. and Canada

Highlights

Tesla has removed the standard Autopilot feature from new vehicles in the U.S. and Canada, pushing users toward its $99/month Full Self-Driving subscription.
The change sparked user backlash and regulatory scrutiny, raising concerns about accessibility and safety.
Investors now await Q4 earnings for clarity on the company’s broader autonomy strategy.

Tesla’s recent price action suggests a short-term consolidation phase with downside bias. After peaking near $499 in mid-January, the stock has retreated by more than 12%, currently hovering just above critical support levels around $430. The recent selloff has pushed Tesla closer to the 50-day moving average at approximately $425, while the 200-day moving average sits further below near $390, providing a long-term floor for bullish momentum.

The $498–$500 zone remains the key overhead resistance, where sellers have repeatedly capped rallies over the past month. A break above this psychological barrier would likely trigger technical buying and open room for a move toward $535–$565 in Q1. Until then, the price remains trapped in a broader consolidation band between $420 and $480.

Tesla stock price dynamics (November 2025 - January 2025). Source: TradingView

Momentum indicators point to growing indecision. The Relative Strength Index (RSI) is neutral near 49, indicating a lack of conviction from either bulls or bears. The MACD histogram is flatlining, with no clear divergence from the signal line, suggesting sideways momentum. Bollinger Bands are narrowing, often a precursor to volatility expansion — which could coincide with Tesla’s January 28 earnings report.

Autopilot rollback triggers backlash as Tesla pushes FSD subscriptions

Tesla’s latest strategic move — discontinuing the standard Autopilot system in the U.S. and Canada — has triggered a wave of customer backlash and fresh regulatory scrutiny. All new vehicles will now require customers to opt for Full Self-Driving (Supervised) to access Autosteer and lane-centering functionality. This package is now only available via a $99/month subscription, with the $8,000 one-time purchase option to be phased out in February.

The company says it is streamlining software offerings to push adoption of its advanced autonomous features and build a recurring revenue model. CEO Elon Musk has long emphasized that autonomy and AI will be Tesla’s most valuable products, eventually eclipsing hardware sales.

However, the shift has created friction with regulators in California and confusion among consumers who expected basic Autopilot capabilities as standard. Critics argue that paywalling essential safety and convenience features could hurt Tesla’s value proposition in a highly competitive EV market, particularly as rivals like Ford, GM, and BYD expand similar driver-assist offerings at no added cost.

High volatility expected with three key scenarios post-earnings

In a bullish scenario, if Tesla surprises to the upside with better-than-expected earnings and provides strong guidance on autonomy adoption or robotaxi monetization, the stock could surge past resistance at $500. A confirmed breakout would target $535 as the next resistance zone, and potentially $565 if macro conditions remain supportive.

In a neutral case, if results come in line with expectations and no new product news is offered, TSLA is likely to continue ranging between $420 and $480. Investors may need more clarity on FSD uptake or non-automotive revenue to re-rate the stock higher.

Elon Musk announced that Tesla will gradually raise the price of its Full Self-Driving (FSD) software as it gains new features and nears unsupervised autonomy. The current $99/month subscription is expected to increase to reflect the system's improving capabilities and value.

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