They canceled it because of poor adoption rather than any technical issues.
Which if anything looks worse for Tesla long term. If luxury car owners aren’t willing to pay 200$/month for self driving then trying to up charge people buying used model 3 and Y’s after canceling the S and X looks dubious. Which means that 100$/month subscription likely loses them money vs an 8k purchase.
Mercedes system was pretty useless because you could only use it in very limited conditions (specific freeways, only following another car). Nobody wants to pay $200/month to use it for 5% of their driving. Tesla FSD drives for you end-to-end.
Most people have a rather consistent commute, so the Mercedes was a more like a 0% or 80% kind of thing. The issue was adding more roads wasn’t going to help, the underlying benefit to attention free driving just wasn’t that valuable even to customers who could use the system regularly.
They are looking to reintroduce it with a much higher top of 81MPH which might help, but agin my issue isn’t with the particular system but the underlying assumption of how much people value attention free driving.
Which if anything looks worse for Tesla long term. If luxury car owners aren’t willing to pay 200$/month for self driving then trying to up charge people buying used model 3 and Y’s after canceling the S and X looks dubious. Which means that 100$/month subscription likely loses them money vs an 8k purchase.