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Is Tesla changing its approach?

Is Tesla changing its approach?

I am among the majority who doesn't need higher acceleration then what is already available. However, I am wondering if Tesla plans to start charging for subsequent features along the same line.

I have purchased FSD but I am worried that Tesla will start charging for new features because those features have nothing to do with FSD (just like the performance upgrade)

I know it is a controversial topic and no FUD intended.

rehutton777 | 19. Dezember 2019

While I did not purchase FSD, I am sure that any upgrade related to future FSD performance will be included for you. However, it is wonderful that Tesla continues to improve their vehicles with new enhancements (e.g. "boost" and "premium connectivity subscription". If you didn't pay for these when you initially bought the car, why would you expect them to get added for free? I think it's great that Tesla makes these enhancements available for purchase or subscription - - you wouldn't get that with other auto makers!

Frank99 | 19. Dezember 2019

It is a bit concerning to me; up til now, enhancements like this have been freebies for owners. As an example, since I bought my Model 3:
1. Power was reduced (in May 2018)
2. Power has been increased (once or twice)
3. Range has been increased (for some)
4. Sentry mode has been added
4a. Additional cameras were enabled after awhile
5. Dashcam has been added.
4a. Additional cameras were enabled after awhile
6. A number of free entertainment options have been added - games, for example.
7. A number of paid entertainment options have been added - spotify, Netflix, etc.

and I'm sure there've been a couple more items that I've forgotten about that don't fall under EAP/FSD. If Tesla starts charging for enhancements, most of that list (except for #1) could be considered enhancements, and perhaps they could have charged for them.

Charging me for features that the car didn't have when I took ownership, and weren't promised to me, would be a change for Tesla, but it would be hard to complain. I admit it, I like it when I'm given free gifts and that was always one of the draws of the Tesla mystique. Whether they'll do this or not for future enhancement is still to be seen; I'm sure that there are features that they will charge for, but whether every improvement gets charged seems really unlikely.

Magic 8 Ball | 19. Dezember 2019

Nothing to worry about. Tesla is the most innovative car company out there, you can count on them changing their approach often to adapt to changing markets. Go Tesla.

EVRider | 19. Dezember 2019

Although Tesla has pushed OTA updates that increased performance for free, they also have a precedent for charging for extra performance, for example when you had to pay extra for Ludicrous on the Model S/X.

In this case I think Tesla is just looking for a way to increase Q4 revenue. I don't think they're changing anything.

vmulla | 19. Dezember 2019

Nothing wrong with giving basic feature for free and charging for enhanced option.
Example: Music streaming
Maybe dashcam cloud storage is a good candidate for upgrades?

Frank99 | 19. Dezember 2019

>>> looking for a way to increase Q4 revenue
Actually, I'm guessing that they're looking for a way to increase Q1 2020 revenue. Too late to do much for Q4.

rehutton777 | 19. Dezember 2019

I think it has more to do with recognizing the value of major enhancements and fairness to previous purchasers than just simply looking at the bottom-line. I knew when I purchased that I would not get premium connectivity with the purchase of the partial-premium interior. I did not pay for premium interior as others did, and should not get the benefit they paid for for free. It's only fair that those of us who did not pay for something that others shelled out good money for should now expect to pay additional for that benefit.

hokiegir1 | 19. Dezember 2019

People have asked for paths to upgrade things...including the AWD to a P and adding premium connectivity to those who don't natively have it. Rather than leaving people in the cold, Tesla is offering the option. This isn't the same as a overall "more power" (*insert Tim Allen grunt*), but actually changing what was previously a model difference that could only be done when ordering the car. People questioned if they were the same motors, why was one "crippled." So now, they can undo that. I'm sure there's more to the unlock (maybe not immediately) than just a .5 second 0-60 bump.

bjrosen | 19. Dezember 2019

Nothing wrong with adding new features and charging for them as long as they strike a balance. The $2000 penis enhancement package they are offering is completely fair. I bought a car that did 0-60 in 4.5, I'm fine with that, don't need 3.9 seconds but it's nice to know that if I did ever feel a little inadequate I could get the upgrade for a mere $2K. If they were to offer a hot sort for $20 month I'd pay for that, that's what I paid ON-Star. I'd also pay for Sentry mode cloud storage, a FLASH stick that goes with the car if it's stolen isn't much of a security device but if the car uploaded the Sentry mode video that would be a killer security enhancement, I'd be glad to give them another $20 a month.

What you don't want to see is the mile long list of options that traditional car companies offer. Tesla has been careful to have a minimum number of bundles, it's good for them because it's much easier to manage, and it's good for the consumer because the bundles offer better value. It's the Costco approach, limit the choices but those choices are all good ones at a great price.

FISHEV | 19. Dezember 2019

Wish they would sell the 12 miles of range for the $500 they are charging the new LR AWD owners.

lbowroom | 19. Dezember 2019

Nowhere does it say that the price difference was for the 12 mile range specsmanship.

WW_spb | 19. Dezember 2019

FishTroll you don't need to worry about any of this since you will be departing from Tesla ownership as soon as MoME arrives. And you can enjoy your smaller range.

M3phan | 19. Dezember 2019

They’re not doing anything different from before… Features that are premium add-ons such as AP, FSD, they charge. Features that are software updates/continual improvements are free and will (for now) continue to be (this is stated as such in the Tesla Upgrades info page):
https://www.tesla.com/support/upgrades?redirect=no
“Are over-the-air software updates no longer free?
No, we are continuing to provide over-the-air software updates that help your Tesla get better over time. Some upgrades offer optional improvements or feature sets to your Tesla, which permanently enhance its overall performance or capabilities, and are available for purchase.“

yudansha™ | 19. Dezember 2019

Why are some many upgrades free? Software dev aren't working for free.

M3phan | 19. Dezember 2019

Cuz Tesla is awesome.

ICEMELT | 19. Dezember 2019

I am not trying to dispute the price tag for the performance boost. There are other threads for that. I am talking about a potential sudden change in strategy which is plausible since new upgrade section introduced in app.

I would like to differentiate ongoing services from features. It would make sense to charge reasonable price for cloud storage for dash cam or premium connectivity. But charging extra to add rear camara footage on dash cam and sentry would be my concern.

Again all speculations hence the upfront disclaimer of controversial nature

@M8B, that was an impressive way to agree with me. No pun intended.

M3phan | 19. Dezember 2019

@ bjrosen, $2000 penis enhancement pkg, that’s funny right there, I don’t care who you are. Known internally as the Package Package.
@ ICEMELT, it’ll be interesting to see how the Upgrade conceit fleshes out over time, for sure.

M3phan | 19. Dezember 2019

Conceit-concept

lbowroom | 19. Dezember 2019

"I am talking about a potential sudden change in strategy"

Potential? because there is no sudden change in strategy so far

jordanrichard | 19. Dezember 2019

Before even more panic ensues, no one knows what this “boost” means in terms of acceleration. People paid a hell of lot more than $2K to get Ludicrous mode and that only shaved .7 seconds off the acceleration of the previous “Insane” acceleration of 3.1.

As for them charging for other updates, then don’t buy them. This isn’t complicated. If no one pays for certain updates, Tesla will stop monetizing them.

jordanrichard | 19. Dezember 2019

It’s amazing how people want to blame a company for the cost of things, when a company only charges what they feel people are willing to pay. If no one/enough people are willing to pay “x” amount for a given product or service, they will reduce the price.

in7 | 19. Dezember 2019

When I bought my LR AWD back in Jan 2019, the Tesla person there asked me if I wanted to add on the Performance option. She said it was $5,000 right then, or $7,500 if I decided to get it later, and she said it was a software upgrade only. And she wasn't talking about the Autopilot option, because we had already talked about that in a separate discussion.

So I don't see that Tesla is changing it's approach. This one particular pricing option existed back in January 2019. I think they'll still have other performance improvements for free in the future, just not the acceleration ones.

lbowroom | 19. Dezember 2019

In7- you’re salesperson was confused, upgrading later to P was never an offering, nor is it now

dave | 20. Dezember 2019

Interesting article with more info on the subject: https://electrek.co/2019/12/20/tesla-dlc-for-cars-beginning/

CST | 20. Dezember 2019

The world is full of fools willing to be nicked-and-dimed to death for endless services... I'm baffled by the "I'm willing to pay x per month" for something that is already free. And as consumers, you are eroding your position by offering to pay AND telling them how much... LOL

lbowroom | 20. Dezember 2019

"for something that is already free."

can you elaborate? was 0-60 in 3.6 already free?

slingshot18 | 20. Dezember 2019

@bjrosen The "penis enlargement package" comments need to stop. Some people like to accelerate quickly. That has nothing to do with their physical configuration. I know you think you're funny, but you're not.

slingshot18 | 20. Dezember 2019

@in7 You were poorly informed. That was never an option.

M3phan | 20. Dezember 2019

@ slingshot18, no offense intended. I LOVE accelerating quickly, do so often, and would pay for the option if available for my RWD config. I can laugh at my pkg no problem.

CST | 20. Dezember 2019

@lbowroom - it was on it's way... incremental improvements that were provided as part of the ownership experience.

slingshot18 | 20. Dezember 2019

@ M3phan it’s all good. Thanks for the note. Let’s all laugh at our own package. And I like acceleration, too.

jordanrichard | 20. Dezember 2019

In the past, Tesla has improved acceleration times with OTA updates, for free. Though it was like a .1 second faster acceleration. I think the first car to get a free boost was the P85D with Insane mode. Started out as 3.2 and was tweaked to get down to 3.1.

This boost is .5 seconds. Obviously no one will be able to tell the difference, but it’s not about the actual time that people will feel, but the more pronounced push into the seat.

Wormtown Kris | 20. Dezember 2019

This isn't like improving the automatic wipers, or adding Cuphead across the board.
People paid significantly more for a P versus the price of a Dual Motor AWD. If Tesla turned around and made an upgrade that resulted in a significant cut in the performance difference, for free, those P owners would feel ripped off. AWD owners were happy paying for the options they received when they purchased the car. Now they get to make their cars even faster for $2k, without the visit to a speed shop and aftermarket parts. If you want that option, you can buy it. If you are fine without it, no problem.

RayNLA | 22. Dezember 2019

I’d pay an extra grand to get NOA added to basic Autopilot!

Mr.Tesla | 22. Dezember 2019

Also, Tesla is likely pricing-in potential increased warranty claims resulting from the power increase. Owners who pay for the upgrade will certainly be "testing" it out regularly. They will want to show it off to passengers and onlookers alike. Even when alone, some will have a subconscious need to continuously check if the $2000 feature is "still there" after every software update and when driving the car again after a gap of a day or more.

Tesla knows statistically some owners will "pull a Lennie". That is to say, they will love and pet the rabbit to death. ;-)

(rabbit=hare=speed) ;-)

ReD eXiLe ms us | 22. Dezember 2019

Great. The very LAST thing I need is a larger [PICKLE].