AP + FSD Subscription Model

[ben1628]

Hey, Why don't Tesla starts Monthly subscription Model on this.

Like AP : $100/month
Add AP: $100/month

or something like that. SO if you planning a trip, you can activate it, and pretty soon, people will forget about it and give paying Tesla.

Even at a discount of 2000 CAD and 4000 CAD, it will only take 20 months subscription to break even.

 

[SCW-Greg]

I actually tweeted this to Elon on Friday. But (unsurprisingly) haven’t seen a response.
I think it’s a beautiful idea, one that would fit a ton of people.

Offer monthly use options.

It would probably be a bit of a logistical issue, from a customer support stand point. And would likely take some income off the table for Tesla. But they could incentivize people to buy the full application, by making the monthly use scenarios set by default to auto renew, unless you opt out, and be pretty steep compared to just owning it.

 

[Buggle]

Subscription models suck, just a recipe to soak people.

 

[ewoodrick]

EAP and FSD are much more functional around town than on a trip. TACC is the Totally Awesome Cruise Control for stop and go rush hour traffic.

 

[5_+JqckQttqck]

EAP and FSD are much more functional around town than on a trip. TACC is the Totally Awesome Cruise Control for stop and go rush hour traffic.

Yeah, been using EAP (TACC and Autosteer) in local rush hour traffic and it's been flawless. So much traffic in Toronto that it's rare not to have another vehicle in front to follow and take it easy with the foot.

 

[animorph]

The subscription model will probably come with FSD if Tesla ever takes responsibility for its driving. In that case I expect we'll have insurance payments to Tesla or their insurer.

 

[pcons]

Personally, I dont like the pay as you go model. I'm a 'buy outright' type of person. It seems all software companies are moving to this model and I dont like it. I used to be able to buy MS Office through my company for $10 in the home use program. Now the same 'discounted' program is something like $50/year. I bought a copy of adobe lightroom outright for ~ $200. The current version is 'cloud based' and $140/year or something like that. In the long run you'll pay more (good for Tesla), but I prefer to pay up front if I can afford it....

Plus if they did go to this model, given the pricing of EAP/AP they would likely need to charge more than $100/month if people have the option of 'opting in and out' when they wanted to. Plus then the lose all incentive for someone to buy at time of purchase since they can 'try' it for a month for $100 and possibly never pony up another dime.

Obviously, I'm speaking from my use case which is I already have EAP and think it was worth the purchase price. Different strokes for different folks.

 

[ben1628]

Personally, I dont like the pay as you go model. I'm a 'buy outright' type of person. It seems all software companies are moving to this model and I dont like it. I used to be able to buy MS Office through my company for $10 in the home use program. Now the same 'discounted' program is something like $50/year. I bought a copy of adobe lightroom outright for ~ $200. The current version is 'cloud based' and $140/year or something like that. In the long run you'll pay more (good for Tesla), but I prefer to pay up front if I can afford it....

Plus if they did go to this model, given the pricing of EAP/AP they would likely need to charge more than $100/month if people have the option of 'opting in and out' when they wanted to. Plus then the lose all incentive for someone to buy at time of purchase since they can 'try' it for a month for $100 and possibly never pony up another dime.

Obviously, I'm speaking from my use case which is I already have EAP and think it was worth the purchase price. Different strokes for different folks.

You know why all the software companies move to that subscription model. It shows really good on the balance sheet, there is a constant month to month income. For Tesla, they could have two model, Perpetual (paid in full) and subscription model. For your use case, you just pay a lump sum and you have it. For others that don't need that all the time and are not willing, able to buy it outright, they can pay a monthly fee to have that, while they are at that, if the hardware is not compatible, they would need to upgrade. Hack, Tesla can even do something like what the mobile phone companies are doing. You get a reduce hardware fee if you agree to sign up for X months.

Tesla can do that once they reach a critical mass, and I don't think they are that far off after this year. It's a minimum work for Tesla, the order system will take care of that automatically.