Enhanced Autopilot is priced at $6,000, exactly half of Tesla's FSD package.
Longtime Tesla owners are no stranger to EAP and its functionality. Enhanced Autopilot was offered as an option in the US several years ago, but the option was removed in 2019 when Tesla restructured their Driver Assitance System (DAS) options.
Prior to 2019, Teslas did not include any Autopilot features with their vehicles, but offered two paid add-ons, Enhanced Autopilot and FSD.
In 2019 Tesla introduced basic Autopilot that came standard with every vehicle.
Date
FSD Cost
April 2019
$5,000
May 2019
$6,000
August 2019
$7,000
July 2020
$8,000
October 2020
$10,000
January 2022
$12,000
Basic Autopilot includes traffic-aware cruise control and lane keeping, basically allowing your vehicle to drive on the highway. Basic Autopilot however does not include the ability for your vehicle to change lanes based on traffic or your route.
When Tesla introduced basic Autopilot, Enhanced Autopilot was removed as an option and the FSD package became the sole add-on.
The FSD option has slowly increased in price as Tesla has increased its capabilities. With the last price increase in January 2022, FSD now costs $12,000 in the US.
With FSD's increased capabilities and price, there was now a large gap between basic Autopilot and FSD, in terms of function and price. This made it an ideal time for Tesla to reintroduce Enhanced Autopilot.
For vehicles with EAP, the FSD subscription costs $99, while for those with basic Autopilot, it's a $199/month subscription.
The subscription requires your vehicle to have the FSD computer (hardware 3.0).
Enhanced Autopilot and FSD packages are non-transferrable (tied to the car, not the driver), but the monthly subscription can be stopped on one vehicle and added to another at any time. There is currently no monthly subscription for Enhanced Autopilot.
What's Included
Enhanced Autopilot, Tesla's new mid-tier option, offers several features that are not available in basic Autopilot, including:
Auto lane change: The ability for your vehicle to perform lane changes on the highway and take on ramps and off ramps automatically (driver will need to confirm by applying tension on the steering wheel).
Autopark: Your vehicle will be able to park itself when it detects an available parking spot.
Summon: The ability to retrieve your car from a tight parking spot by having it move forward or backward.
Smart summon: Your vehicle will be able to drive to you in a parking out.
The only major self-driving feature missing from Enhanced Autopilot is the ability for the car to navigate city streets, which is only included in the FSD package.
While the parking and summoning features of Enhanced Autopilot are fun, the biggest advantage to upgrade to EAP is to have automated lane changes on the highway and the ability to subscribe to a cheaper FSD subscription.
Enhanced Autopilot is available for purchase now through the Tesla app.
In the latest episode of Jay Leno’s Garage, Tesla’s VP of Vehicle Engineering, Lars Moravy, confirmed that the new Model Y will feature adaptive headlights.
As Moravy was talking about the updated headlights in the vehicle, which now sit a few inches lower than before, he stated that in a couple of months, Tesla will add adaptive headlights in the U.S.
While Tesla has already introduced adaptive headlights in Europe and the Indo-Pacific, the feature has yet to make its way to North America.
Originally delayed in the U.S. due to regulatory issues, manufacturers have been able to implement adaptive headlights since mid-2024. Meanwhile, competitors like Rivian and Mercedes-Benz have already rolled out their own full matrix headlight systems, matching what’s available in other regions.
Update: This article has been updated to clarify that adaptive headlights will indeed be launched in the U.S., shortly after the vehicle launching in March.
Currently, Tesla in North America supports adaptive high beams and automatic headlight adjustment for curves, but full matrix functionality has yet to be rolled out. Meanwhile, matrix headlights are already available in Europe, where they selectively dim individual beam pixels to reduce glare for oncoming traffic and adapt to curves in the road.
It was surprising that matrix functionality wasn’t included in the comprehensive 2024 Tesla Holiday Update. This feature would likely improve safety ratings, so we can only assume Tesla is diligently working to secure regulatory approval.
Adaptive Headlights on Other Models
Lars didn’t confirm whether the refreshed Model Y comes with the same headlights as the new Model 3 and the Cybertruck, instead simply calling them "matrix-style” headlights.
The headlights on the new Model Y appear very similar to those available in the 2024+ Model 3, possibly meaning these other models will also receive adaptive headlight capabilities in the next couple of months.
For vehicles with older-style matrix headlights, it’s unlikely that adaptive beams support will launch at the same time, but they will hopefully become available soon afterward.
For the first time since launching Tesla Insurance in 2019, Tesla will begin underwriting its own policies, starting in California.
Tesla Insurance originally debuted in California and has since expanded to several U.S. states. Until now, policies were underwritten by State National, a subsidiary of the Markel Insurance Group. However, Tesla is now transitioning to fully in-house underwriting, beginning with its home state.
As part of this shift, California Tesla Insurance customers who receive an in-app offer to switch will be eligible for a one-time 3% discount on their next term’s premium—covered entirely by Tesla Insurance.
What is Underwriting
Underwriting is the process an insurance company uses to assess risk and determine whether to offer coverage, at what price, and under what terms.
Insurers evaluate factors such as driving history, credit score, age, vehicle type, and location. In Tesla’s case, vehicle driving data (not available in California) also plays a key role in risk assessment. These factors help classify drivers into risk categories, which influence their base premium.
From there, coverage limits, deductibles, and policy inclusions or exclusions can further adjust the final premium up or down.
Robotaxi and Other Benefits
At first glance, underwriting insurance might seem like a complex and costly process for Tesla. However, there are several compelling reasons why this move makes sense.
Insurance Income: Insurance is a highly profitable industry. Companies set rates based on risk, offering lower premiums to safer drivers and higher rates to riskier ones. This not only maximizes profitability but also incentivizes safer driving behavior, reducing overall claims.
Data Advantage: Tesla collects vast amounts of driving data through its Safety Score system. While California doesn’t allow Safety Score to impact premiums, Tesla can still use this data in the underwriting process to refine risk assessments and pricing for its vehicles.
Control Over Repair Costs: By underwriting its own policies, Tesla gains direct control over repairs and total loss decisions. This allows them to dictate when, where, and how repairs are done, optimizing costs for parts, labor, and service while ensuring vehicles are fixed according to Tesla’s standards.
FSD-Driven Discounts: Tesla has already begun offering insurance discounts for drivers using Full Self-Driving (FSD). By underwriting its own policies, Tesla could expand these incentives, potentially offering greater discounts to frequent FSD users in the future.
Preparing for Robotaxi: Perhaps the biggest long-term reason for this shift is the June launch of the Robotaxi fleet. How will Tesla insure these vehicles? The answer is simple—by underwriting its own policies and assuming liability.
Tesla’s decision to underwrite its own insurance isn’t just about cutting out middlemen—it’s a step toward lowering costs, increasing profitability, and preparing for the future of autonomous driving, a risk many insurance companies may be unwilling to make.
Further Expansion
This could be a strong sign that Tesla is preparing to expand its insurance offerings now that it has taken on the underwriting process itself. In July 2024, Tesla hired a former GEICO insurance executive to lead the expansion of Tesla Insurance and help reduce costs—a move that now appears to be paying off.
Rather than a traditional expansion, Tesla has instead made a bold move by bringing underwriting in-house, something few expected. However, it aligns with Tesla’s strategy of vertically integrating and controlling key aspects of its business, whether in manufacturing, software, or now, insurance.
If this pilot program proves successful, it could pave the way for Tesla Insurance to launch in more states—and potentially even other countries. With 2025 shaping up to be a pivotal year, we may see Tesla accelerate its insurance expansion sooner than expected.
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