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So what happens if you can't connect to the wireless network, which isn't an infrequent event?

Even if Tesla begins using a cloud server for navigation routing, they would likely still need to provide an offline navigation database in the car - and use that for routing when Tesla's cloud server isn't available. And then when a connection becomes available, the route could be recalculated quickly using the up-to-date cloud data.

We already have this situation today. When entering a navigation destination, if there isn't Internet connectivity, the user interface restricts the destination input to only the information you have local in the car - allowing you to enter an address - but it won't be able to do a search on POI (Points of Interest) names, which requires Internet access for searching.

As for Tesla building their own maps - even with car data, Tesla will still need up-to-date maps to provide all of the information needed for routing. The car data won't be able to provide everything - items like building addresses will likely still need access to up-to-date map data (which Google has).
 
MIne tried to turn me left into a layby yesterday and then back onto the road 200m later. In the past it has taken me off a motorway junction across the roundabout and straight back onto the motorway again - it really is a terrible sat nav system and lets then car down badly. Potty!!

MIne tried to turn me left into a layby yesterday and then back onto the road 200m later. In the past it has taken me off a motorway junction across the roundabout and straight back onto the motorway again - it really is a terrible sat nav system and lets then car down badly. Potty!!
This happens to me also this week twice, quite frustration. When it happens it's often in or around Seattle for me.