Tesla to Begin Charging Subsription for Connectivity Services

Matt Posky
by Matt Posky
tesla to begin charging subsription for connectivity services


Not to be outdone by the likes of BMW and Volkswagen Group, Tesla has decided to begin linking its connected services to a subscription-based payment plan. German automakers may be careening headlong into an era where you have to pay a monthly fee just to activate already installed hardware like heated seats. Though Tesla remains the master at conning customers into overpaying for nebulous features and we need only look at the Full-Self Driving suite, that has yet to manifest into genuine vehicular autonomy and just keeps getting more expensive, for an example.


While the standard connectivity package has always been free for the vehicle's lifespan, Big T is now saying that's only going to be true for the first eight years of ownership. The rationale here is that automotive companies have to continue supporting connectivity services and that there needs to be something to help offset that ongoing financial investment.


Considering just how many automakers now offer connectivity as standard equipment these days — often using it as a method for hoovering up customer driving data — seeing Tesla deciding to charge owners after just eight years is slightly disheartening. But the whole industry is pivoting to new payment schemes manufacturers think will yield better margins in the long run and it'll be easier to leverage via all-electric vehicles using over-the-air (OTA) updates. Volkswagen and Mercedes are currently trying to suss out how to charge subscriptions for advanced driving features whereas BMW is already placing hardware-based features behind a digital paywall. However they're just a handful of examples out of an entire industry comprised of manufacturers thinking similarly. In fact, the only large companies I can think of that have indicated some amount of hesitancy toward the notion of having to perpetually support connectivity features on older cars were Toyota and Dodge. But the former seemed mainly concerned about how this would impact long-term reliability, whereas the former just didn't seem to care — something that may change now that it's owned by Stellantis and not Fiat Chrysler Automobiles.


Tesla's cutoff date for a lifetime of free connectivity was July 20th of this year. Customers will now have eight years to enjoy the service (which includes navigation) and then opt into a monthly or annual subscription fee. Pricing hasn't been announced yet but it's likely to be less than the fancier option that comes with things like video streaming, an internet browser, and upgraded traffic info. The premium service is $99 per year at present and appears fairly popular, so we're doubting most die-hard Tesla shoppers will be all that outraged.


Though something about the brand's history leaves one dubious on the prospect of the company adhering to the full eight years. More than likely, we'll see that goalpost moved a little closer sooner than expected. It also needs to be said that Tesla vehicles don't support Apple CarPlay or Android Auto, making the enhanced connectivity a little more important for drivers who are accustomed to a feature-rich infotainment system. Though the group that's going to be affected most are those shopping on the secondhand market, something Tesla has already been a little goofy about.


We've been worried about subscription services run amok for ages. Granted, manufacturers have said these items won't manifest fully for years to come. But most are also saying that with dollar signs in their eyes. Unless the market shows its unwilling to play along, there may soon be a day where drivers have to shell out monthly payments on items that used to be standard equipment or live with the knowledge that it's embedded within the vehicle and they're simply too poor to afford it.


[Image: BoJack/Shutterstock]

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  • DenverMike DenverMike on Jul 26, 2022

    Just on principle, not happening. Not just that the aftermarket can it do better, if I can't live without, but not before simply trying a hot-wire. Every gadget is 12volts at its core, like heated seats for example.


    Except I'd rather opt out in the showroom to begin with. I'm all about the "base model" or one notch or package up, depending features. Some are clearly at the automaker's loss, if you can handle it, staring at blockoff plates and whatnot.




  • Kendahl Kendahl on Aug 08, 2022

    A Tesla feature has been free, periodic, over-the-air, software updates that add new features or improve existing ones. Owners brag that their x-year-old car is better today, because of the updates, than it was brand new. Will Tesla start charging for these updates after a few years? Teslas hold their value very well. I suspect losing free updates will do serious damage to that.

  • Lou_BC " GMC Canyon sales during the second quarter of 2023 kept Big Red’s midsize pickup last in its segment when ranked by sales volume. The Toyota Tacoma continued to command the top spot, while also being the only model to be in the green with a 14 percent bump to 63,262 units year-over-year, representing nearly half of all segment deliveries. The  Chevy Colorado (see running  Chevy Colorado sales), the Canyon’s corporate cousin, placed second with a 12 percent dip to 19,909 units. The Nissan Frontier took third with a 17 percent slide to 17,213 units, followed by the Jeep Gladiator in fourth with a 34 percent drop to 13,751 units. The  Ford Ranger (see running  Ford Ranger sales) took fifth with a 22 percent decline to 12,618 units. The GMC Canyon (see running  GMC Canyon sales) finished out the short list with an 11 percent slip to 6,708 units"
  • 2ACL If you weren't throwing away your Mercedes after the warranty expired, this will fix that. This is an overly complex answer to the AMG question I don't think will endure the test of time.
  • Kwik_Shift Looks like what a redesigned Nissan Murano would be. I believe Murano is done.
  • MaintenanceCosts This is a Volvo EX90 with swoopier styling and less interior room. I'm really not sure I understand the target audience.
  • Stuki Moi If government officials, and voters, could, like, read and, like, count and, like, stuff: They'd take the opportunity to replace fixed license numbers, with random publicly available keys derived from a non-public private key known only to them and the vehicle's owner. The plate's displayed number would be undecipherable to every slimeball out there with a plate reader who is selling people's whereabouts and movements, since it would change every day/hour/minute. Yet any cop with a proper warrant and a plate scanner, could decipher it just as easily as today.
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