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Watch Tesla’s new automatic lane-changing tech in action

The Model S will also scan for a parking space and parallel park on command.

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But analysts say the lane-changing feature is an industry first.

“We tried to make (Autopilot) work like it’s a really good chauffeur, not too conservative, not too aggressive”, Tesla founder Elon Musk said during a press conference at the company’s headquarters here. It also noted that the system doesn’t take into account for traffic lights and stop signs, which means drivers will have to take over when these come up.

“I think this is going to be quite a profound experience for people”, Musk said.

“At Tesla, we try to pioneer new technology”, Musk said.

When autopilot is engaged, a warning message tells drivers to keep their hands on the steering wheel. The software will require drivers to hold the steering wheel every ten seconds to prevent the vehicle from slowing down.

Tesla chief executive Elon Musk said users adopting the software – available in North America from Thursday – should exercise caution while using it.

The autopilot update will be added to around 60,000 vehicles worldwide, including Model S sedans made after September 2014 and Model X SUVs.

Shares of Mobileye (MBLY – Get Report), a maker of advanced driver assistance systems technology, are rising in early trading after Tesla (TSLA – Get Report) unveiled the newest version of its software with autopilot capabilities. Owners in Europe and Asia will get the software update in about a week. “While truly driverless cars are still a few years away, Tesla Autopilot functions like the systems that airplane pilots use when conditions are clear”. In three years, Tesla aims to build a vehicle which will be “able to take you from point to point, or drive from home to work, without you touching anything”.

Karl Brauer, a senior analyst with Kelley Blue Book, said Tesla’s system appears to up the ante for the industry.

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Autopilot’s key features – autosteer, auto lane change and auto park – help move the pioneering electric vehicle manufacturer one step ahead in a race toward semi-autonomy that’s now been joined by virtually even major automaker.

Tesla is becoming a driverless car business in a very sneaky way