Paid Premium Connectivity vs Standard Connectivity

Brokedoc

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#1
Electrek has just posted details about Tesla’s new Premium Connectivity vs Standard Connectivity policy that will be effective July 1.

Premium is defined as full cellular connectivity as the cars currently have. Standard connectivity will allow NAV to work but without satellite view or live traffic displays. Standard will also not have internet or streaming music. Standard will only get FW updates when connected to WiFi unless the update is a safety update.

In a nutshell, any Tesla (S3X) ordered BEFORE 7/1/18 will get lifetime free cellular connectivity as the car has now.

Any S/X ordered after 7/1/18 or any 3 with PUP will get ONE year of free premium connectivity. After one year or for non-PUP 3s, premium connectivity will be about $100 per year.

The way I see it, unlimited free cellular for Tesla’s growing fleet was unsustainable and some sort of fee or limitation was inevitable. I think $100 per year is extremely reasonable.

https://electrek.co/2018/06/23/tesl...ernet-features/amp/?__twitter_impression=true
 

SoFlaModel3

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#2
Yup this makes sense all around and honestly at $100/year still very reasonable to have streaming music, “real maps”, and live traffic, as well as a future internet browser (perhaps).

The challenge will be those that don’t park in a personal garage, they’re going to have to seek WiFi for updates or bring in their cars.
 

Tchris

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#3
So, I assume when they refer to “order” they mean “configure” by July 1st? I’m guessing that placing $1000 deposit for a reservation does not count as ordering. Does that sound correct?
 

Brokedoc

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#4
So, I assume when they refer to “order” they mean “configure” by July 1st? I’m guessing that placing $1000 deposit for a reservation does not count as ordering. Does that sound correct?
I have yet to see the official policy but it makes more sense to use the config date.

Honestly, I can see this being a lower level on the referral program like if one of your referrals buys a Model 3, you get a free year of Premium Connectivity. As the lines ramp, the reservation list will dwindle and referrals for Model 3 may start counting for something.
 

jmmdownhil

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#5
So, I assume when they refer to “order” they mean “configure” by July 1st? I’m guessing that placing $1000 deposit for a reservation does not count as ordering. Does that sound correct?
Config date certainly makes sense. Can’t see how they would let +/-400,000 reservations through the gate untouched. “Free” anything (of value) is rarely sustainable in the long run, especially with the unmatched connectivity provided by Tesla. If premium is only $100/year that seems very reasonable to me. I am currently paying much more than that on the XM/Sirius subscriptions on each of my current cars - with no where near the Tesla connectivity/features.
 

Brokedoc

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#7
This seems like some what of a screw you to those of us that are still waiting to be able to order, or those that are invited but waiting for AWD etc.
I see it as quite generous if you consider that 2014 and later S/X were only supposed to get included premium connectivity for 4 years. $100 per year is basically a giveaway and likely covering not much more than the cost to Tesla.

Also keep in mind that after 7/1, any new S or X will get the same 1 year of included premium as the Model 3 PUP owners.
 

tipton

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#8
yeah the big question has to be when/what is considered "ordered" money down, configuration or actual delivery.
 

Derik

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#9
$100 a year doesn’t sound bad. Even the standard sounds like it would give you remote access etc.

My mother in law just picked up a new car and it came with uconnect for free for a year. Which was an app to remote start the vehicle monitor location etc. then after that it is $240 a year.

A $100 a year for streaming etc sounds cheap compared to what other manufacturers are offering.
 

Bokonon

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#10
I see it as quite generous if you consider that 2014 and later S/X were only supposed to get included premium connectivity for 4 years. $100 per year is basically a giveaway and likely covering not much more than the cost to Tesla.
Also keep in mind that after 7/1, any new S or X will get the same 1 year of included premium as the Model 3 PUP owners.
From that viewpoint, yes, it is generous. You could also easily make the case that it's generous that any Model 3 owners at all will get premium connectivity for free, because, similar to free supercharging, it feels like the sort of small "value-added" perk that gets bundled into the price of an S/X and help differentiate those products from the Model 3.

The part that feels unfair is splitting the ~150,000 or so people who reserved a Model 3 within the first 24 hours into two groups based on an arbitrary cutoff date which, as @JWardell notes above, has just as much to do with your preferred configuration as it does with your place in the reservation queue. This isn't to suggest that we should expect every aspect of Tesla's ordering process to be fair -- at this point, who could? -- but setting an ordering cutoff date of July 1st feels like a clumsy implementation of the new policy for early Model 3 reservationists... especially given the various maneuvers that Tesla has been making to push delivery 200K into Q3 (i.e. July 1st!), and that no new First Production invites have been sent out in two months.

(I say all of this as someone who will apparently be grandfathered into free premium connectivity, having placed an order on May 23rd.)

If it were my call, I'd use a reservation-date cutoff (say, the first 24 hours worth -- or whatever the latest reservation timestamp is among anyone who has has ordered First Production so far) rather than an order-date cutoff, and make it contingent upon the purchase of the PUP. That way, everyone who has ordered a Model 3 so far will be grandfathered in, as would any early reservation-holders waiting to order AWD, Performance, or Standard Battery (with PUP). The cost of this policy would be roughly 180,000 (reservations in first 24 hours) * 52% (reservations in US/Canada) * 56% (preference for PUP) * $100/year = $5.2M/year, versus roughly $2.5M/year under the currently-stated policy, with both of those costs declining over time as the affected cars are retired from service. $2.7M/year seems like a reasonable outlay to reinforce customer loyalty.

At any rate, the silver lining here is that the source for this announcement is an internal sales memo, so the policy could theoretically change, as has happened previously with the "end of free supercharging" announcements. And, for everyone who has been eagerly waiting since April 18th for their invitation to configure First Production, we've still got a week left before July 1st, so maybe.... MAYBE... there will be a chance to place your order in time.
 

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#11
The price seems more than fair, $100 for 12 months is cheap compared to most, but I can understand and see those waiting to configure/order but have been on the list would be little miffed over those of us that already received the 3's this year. I would have thought that Tesla might have been a bit more prepared and had done this back on January 1 or so which would have caught most of the 3's. Likely it's also a way for them to continue to capture data and video from the earlier cars and a thank you for letting them do so.

I like this part but it was not from Tesla it was from Electrek's take on it:
"Folks with Mifis or unlimited phone connectivity can also opt to just use their phone as a Wifi bridge instead for streaming services it would appear."
I don't know the number of cell phone plans out there that include unlimited data or streaming or how much someone would use in a month in the car, but at least there will be options, connect it to your hotspot.
 

3V Pilot

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#12
We all knew this would have to come someday. I'm glad my car is grandfathered into the old program and I feel for those who can't configure before the cutoff date. That said I agree with those above that $100 a year is a bargain for what you get and even if I had to pay I wouldn't be all that upset. GM Onstar, XM radio, and other services out there give you much less and cost more. With nearly half a million pre-ordered cars Tesla had to make this move before too many were delivered.
 

skygraff

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#13
Yeah, as somebody who will have it free for as long as I own my current Model 3 (forever if I don’t feel compelled to get a used AWD later), I’m not looking a gift horse in the mouth. However, as somebody who might feel compelled to get a non-comped Model 3 someday, I’m annoyed (for myself and others).

TuneIn is not a perfect substitute for AM radio but, if you don’t need to hear sports or local alert broadcasts, it is viable. Nope, sorry, for X & 3 owners, pay $100/year to hear free radio.

Traffic data to help you negotiate your commute is available to the car but, unless you want to pay, you won’t see what the computer does so just trust it or distract yourself by looking at Waze on your phone (because there’s no integration).

Tesla will grab data about your driving to enhance the neural net and EAP/FSD but, unless you pay, you’d better be sure to have a good WiFi connection to your garage if you want to experience those enhancements (provided it isn’t critical for safety and deemed worthy of them using their OTA powers for your benefit).

Listen, I never expected it to be free for life but, considering all the integration and two-way benefits, I certainly expected it to last longer than this quarter. At their very least, it should go to all reservation holders who’ve already provided Tesla an interest free loan. It would be nice if it was part of the PUP or a tech package or could have a pre-pay, unlimited package price. Of course, it would be nice if tethering enabled all those functions or, better yet, if we could add our cars to our existing personal data plans.

I guess I was expecting the Tesla/SpaceX satellite constellation to be the future (free) source for data and thought that would be launched before they decided it was time to make this aspect of the Tesla experience a line item in the profitability equation. Business is business.
 

SoFlaModel3

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#17
This seems like some what of a screw you to those of us that are still waiting to be able to order, or those that are invited but waiting for AWD etc.
Alternatively it could be a motivator to continue to push first production rather than wait. I do doubt it with the low price tag though.
 

Mike

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#18
Standard connectivity will allow NAV to work but without satellite view or live traffic displays.
Sidebar question: how does one see actual traffic displays in Model 3? Is it only available in non-satellite view? I've only been using satellite view and have never seen live traffic.
 

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#19
Just a matter of time before they changed their policy on data usage.

$100 a year is reasonable given what other car companies charge for their OEM nav updates alone... I think it’s a bargain
 

SoFlaModel3

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#20
Sidebar question: how does one see actual traffic displays in Model 3? Is it only available in non-satellite view? I've only been using satellite view and have never seen live traffic.
In shows in both map views as green, orange, and red lines over the roads.