Zinger Key Points
- Tesla initially offered internet connectivity and navigation free to users.
- In 2018, the company put several free features behind a $10 monthly subscription plan for users.
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A standard feature on Tesla Inc TSLA will no longer be offered for free on an unlimited basis. Here’s the latest on Tesla’s internet connection in vehicles.
What Happened: Previously offered as an unlimited feature, Tesla’s “standard connectivity” internet connection will no longer be unlimited, according to a report from Electrek.
Offered as a flagship feature for Tesla vehicles and a bonus to rival automotive companies, standard connectivity helps Tesla collect data and improve features and also serves as a perk to customers with navigation offered.
“Standard connectivity is included in your vehicle, at no additional cost, for eight years beginning on the first day your vehicle was delivered as new by Tesla, or the first day it is put into service, whichever comes first,” the Tesla website said.
Tesla rolled out a new paid “premium connectivity” package in 2018 for a monthly fee of $10.
Related Link: Tesla Q2 Earnings Highlights: Revenue Miss, EPS Beat, Bitcoin Converted To Fiat, 'Record Breaking' Second Half Coming
Why It’s Important: The website does not mention an option to pay for standard connectivity after the eight years, which led Electrek to believe premium connectivity would need to be purchased after the free plan runs out.
The standard plan includes navigation at no cost to users. Features in the premium connectivity plan include live traffic visualization, sentry mode, satellite-view maps, video streaming, karaoke, music streaming and internet browsing.
While some will be upset the unlimited offer of standard connectivity is going away, users still get eight years for free, which is ahead of most peers in the automotive industry.
Tesla said in its recent earnings report it would see higher profits from increased software-related products. The push for people to subscribe to premium connectivity could be a future revenue driver.
The move by Tesla comes after BMW BMWYY just announced it would charge monthly subscription fees to users for many items including heated seats.
TSLA Price Action: Tesla shares are up 2.21% to $842.70 at market close on Thursday.
Photo: Courtesy Tesla Inc.
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