Tesla's Cybertruck is getting dragged lately—and not in a fun way. Between the lackluster sales figures and the long-promised Range Extender getting filed away for good, Tesla's flagship pickup isn't having a great year.
And now, things are getting even worse as the automaker tells owners that it won't get a basic feature of Autopilot that every single Tesla sold in the U.S. over the past decade has baked in.
Welcome back to Critical Materials, your daily roundup for all things electric and tech in the automotive space. Today, Tesla has cut Autosteer from the Cybertruck, used car prices are jumping in anticipation of tariff-related vehicle price-hikes, and Ford will raise the price of three North American-built models—also due to tariffs.
Let's jump in.
30%: Tesla Cybertruck Isn't Getting Basic Autosteer
Imagine buying a $100,000 electric pickup shaped like some sort of futuristic chrome cheese wedge. Imagine waiting nearly half a decade to get your hands on it. Imagine it losing a significant chunk of its value right after buying it because the CEO decided to turn into a political spokesperson who helped to cut the jobs of more than 280,000 Americans who worked for the federal government.
And now imagine, after all of that, your six-figure Tesla Cybertruck won't even have the most basic form of lane-keeping without paying for Tesla's $8,000 Full Self-Driving package.
Tesla issued a polite message to Cybertruck buyers this week to let them know that they would be offered a complimentary one-year subscription to FSD. The reason? Well, it wasn't out of the kindness of Tesla's heart. It's because Tesla won't be activating Autosteer on vehicles with just standard Autopilot, making the Cybertruck the first Tesla since 2014 to come without Autosteer included in its basic Autopilot package.
Here's Tesla's email to Cybertruck owners:
Your 1-Year Free FSD Trial is Here
Your Cybertruck [...] is eligible for a free, 1-year Full Self-Driving (Supervised) trial.
As we improve our Autopilot technology, our feature sets will change. Accordingly, Autosteer will not be available for Cybertruck outside of Full Self-Driving (Supervised). We encourage you to experience our latest version of Full Self-Driving (Supervised) to immerse yourself in the power of its innovation.
As a thank you for being an early Cybertruck adopter, we are offering you a free, 1-year trial of Full Self-Driving (Supervised).
Let's back up for a second, because it's important to point out that the Tesla Cybertruck doesn't have Autosteer included today unless owners have subscribed to FSD, purchased it, or had the software suite bundled into their truck's trim.
Autopilot, which normally comes with lane-keeping called Autosteer, hasn't been feature-complete since the first truck was delivered back in November 2023. While every other vehicle in Tesla's lineup today features Autosteer, the Cybertruck—Tesla's first steer-by-wire vehicle—just featured Traffic Aware Cruise Control.
It's really not clear why Tesla has chosen this route. In the past, Tesla has always described Autopilot as "a suite of advanced driver assistance features" that includes both Traffic-Aware Cruise Control and Autosteer for all models.
Here's where it gets muddy. Tesla even advertised it this way for the Cybertruck, too. Early versions of the owner's manual saved in the Internet Archive show that the Autopilot included both TACC and Autosteer. It wasn't until after October 2024 that Tesla queitly removed references to Autosteer under Autopilot features. The current version of the manual shows no reference to Autosteer.
It could be feature compatibility, a push for additional revenue, or maybe even an indication of how Tesla plans to ship barebones vehicles in the future. And if that's the case, this doesn't bode well for Tesla's cheap $30,000 EV that's supposed to be debuting next month.
Either way, it feels crazy to say that a truck that starts at nearly $70,000 doesn't have lane-keeping assist. Keep in mind that basic econoboxes selling for less than half the price offer this as a standard accessory. And folks who purchased the Cybertruck without FSD aren't exactly happy about this change, even with the free year of FSD.
In Tesla's defense, it does say that its "feature sets will change," meaning that it could add Autosteer back into the suite at a later date. But as it reads now, owners are left without Autosteer and calls for class action lawsuits are already being floated on forums.
60%: Used Car Prices Jump In Preparation For Tariff-Induced Hikes
April is usually the month when the used car market starts to catch its breath. Buyers who rely on their tax refunds have already made their purchases, and by mid-month, wholesale prices start to settle like a toddler coming off a sugar rush. This year is different.
Rather than fall, used car prices are continuing to climb. The data comes straight from Cox Automotive's reporting of the Manheim Index, a figure used to gauge trends in wholesale pricing (or, the price that dealers pay for used cars at auction). According to Automotive News, the Manheim Index has risen 2.7% year-over-year, marking the highest jump since October 2023.
What's the reasoning? It's not that used cars just magically got more reliable—unfortunately, it's something a lot more grim. According to Cox, dealers have started to gobble up just about everything they can buy at auction, hoping to purchase an inventory of used cars ahead of tariff-induced price hikes of new vehicles.
Here's the skinny from Automotive News:
Used-vehicle wholesale prices increased markedly in April as dealers bought from auto auctions in preparation for vehicle supply and demand influenced by tariffs, Cox Automotive said May 7.
The Manheim Used Vehicle Value Index—a measurement of wholesale used-vehicle prices Cox aggregates by tracking vehicles sold at its U.S. auctions and applying statistical analysis to those numbers—increased to 208.2, up 2.7 percent from March and up 4.9 percent year over year.
It is the highest reading for the index since October 2023, Cox said.
A higher index can signal dealers expect inventory to tighten and prices to rise because of stronger demand, market disruption or both, Cox said.
According to Cox, wholesale pricing trends were "much stronger" than usual. As should be expected when an entire industry is warning of impending price hikes on the cost of new goods. That sudden uptick will undoubtedly cause the price of used vehicles to rise sharply along with it, as buyers look to maximize their bang-for-buck when purchasing. And if the price of a new vehicle suddenly skyrockets $5,000 overnight with zero change in form, fit or function, it's only logical to expect used vehicle prices to follow in the same upward trend.
"We expected to see strong price appreciation in response to the tariffs, and that’s exactly what came," said Cox Automotive's senior director of economic and industry insights, Jeremy Robb. He later continued:
"As we move into the second half of the year, though, the auto market may slow as strong demand likely pulled some transactions forward in March and April as buyers tried to get ahead of expected higher prices due to tariffs."
Dealers are also finding themselves with around 11% fewer days of supply on hand. Last year, dealers ended April with around 46 days' worth of used retail vehicle supply. This year, dealers had just 41 days.
So what does this all mean? Well, if you're a dealer, it's time to hoard 2017 Toyota Camrys like toilet paper in the pandemic.
Those little econoboxes could turn into true appreciating assets come later this year. And if you're a used car shopper, maybe consider whether or not waiting to find that best deal will actually result in you paying more in two months than you would have last week.
90%: Ford Is Raising Prices On Three Models Built In North America Thanks To Tariffs
Considering picking up a new Ford lately? If a Mustang Mach-E, Maverick, or Bronco Sport was on your list, you may want to re-check your budget, because Ford informed dealers in a memo that it was raising prices on all three models. The reason is—you guessed it—tariffs.
Now, if you're wondering what all three of these models have in common (especially since one is a BEV, the other comes as a hybrid, the final with an ICE powertrain), it's an easy one: assembly location. But that actually makes it more of a head-scratcher since they're all technically made in North America. Still, tariffs are a global affair with complex supply chains, meaning that assembly location alone won't make up for parts content that don't fall under the USMCA tariff exemption.
According to a dealer note seen by Reuters, Ford plans to raise the price of these models by as much as $2,000 to offset the $2.5 billion gut-punch brought on by the tariffs. And that's with Ford absorbing some of the cost in its bottom line.
Reuters has the scoop:
Ford’s decision to hike prices comes just days after it said the effects of Trump’s trade war would add about $2.5 billion in overall costs for 2025, and as it suspended its annual earnings guidance. Rival GM also said tariffs would cost it billions of dollars following the hefty levies Trump imposed on imported automobiles.
A Ford spokesperson said the price hikes will affect vehicles built after May 2, arriving at dealer lots in late June. The spokesperson said the price hikes reflect “usual” mid-year pricing actions, “combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers.”
These price hikes are already in effect, according to Reuters. The memo reportedly indicates that any vehicle built after May 2nd will be priced with the adjustment baked into the invoice, however, the vehicles won't hit dealer lots until late June, meaning that if you want a pre-tariff Mach-E or Maverick Hybrid, the clock is ticking.
Ford's CEO has been warning for months that if Trump's tariffs went into place, its vehicles would get more expensive. The significant cost uptick means wiping out billions of dollars in profit for just about every single automaker doing business in the U.S. since supply chains for modern cars aren't tied to just one country.
"There’s no question that tariffs at the 25 percent level with Canada and Mexico, if they’re protracted, would have a huge impact on our industry," warned Ford CEO Jim Farley in February, later continuing: "With billions of dollars of industry profit wiped out, and adverse effects on US jobs as well as the entire value system in our industry, tariffs would also mean higher prices for customers."
The bottom line is this: the trade war is no longer just a headline. The consequences are here and now displayed right on the final price shown on the car's window sticker. And without any sort of relief from current administration, it's unlikely that vehicles will get any cheaper in the near term.
100%: What Should Happen When An Automaker Disables A Software Feature Via An OTA Update?
This has been on my mind since Xiaomi decided to sap a whopping 600 horsepower from the SU7 Ultra. Sure, the automaker eventually gave it back, but it did that after owners started to complain. Now that Tesla has also decided to give up on Autosteer for the Cybertruck (despite it being in the owner's manual for around a year from the start of deliveries), it's something that folks should start seriously thinking about.
Our cars are basically giant apps on wheels. Software that's connected to the internet, getting updates on the fly, and sending gobs of data back to the mothership to do who-knows-what with. It's kind of scary to think about, and even more concerning when automakers just decide to pull (or give up on) features on a whim.
That being said, what should happen to automakers when they pull a stunt like this? Would you expect a refund? A dieselgate-level buyback event? A class action lawsuit? Let me know your thoughts in the comments.
