Stellantis is reportedly backtracking on autonomy. In February of this year, Stellantis said that STLA AutoDrive would allow drivers to read a book or watch videos while behind the wheel. Despite saying that it was ready for deployment, the company may be scrapping the plan altogether over costs.
That report comes from Reuters, which says that the news is sourced from three people with knowledge of the change. They linked the change to high costs, consumer demand, and technological challenges.
Stellantis, for its part, played coy when asked about the situation. “What was unveiled in February 2025 was L3 technology for which there is currently limited market demand, so this has not been launched,” a spokesperson told Reuters, while insisting the system is “ready to be deployed.”
Semi-autonomous driving tech can be an income generator. Tesla and Mercedes both charge more for advanced driving aids. That makes Stellantis' statement about market conditions seem strange. There is at least some market for this kind of feature set, but the costs could simply prove too expensive to tackle right now.
“It's high investment for high risk,” said Stuart Taylor, chief product officer at consultancy Envorso. Automakers that go it alone absorb not just the initial development costs, but also the losses if customers aren’t willing to pay for it.
Perhaps supply chains aren't ready for full-scale production, or tariffs are playing a larger role than Stellantis expected. Maybe it could be concerns about the costs on the back end. Level 3 driving tech is notable because it's the first level where automakers assume some responsibility if an accident happens while the tech is engaged.
In recent weeks, Tesla saw its first major court loss in a case surrounding semi-autonomous driving technology. No doubt, Stellantis wants to keep itself from getting into the same sort of hot water. The change in leadership at the top of Stellantis could also have played a part. With Carlos Tavares leaving abruptly last year, new CEO Antonio Filosa might simply have different priorities.
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