Premium Connectivity cost $9.99/month for many Model 3 versions

[RonFTW]

I have unlimited data. So yes $10 more is $10 more. My cell phone bill is not going to change if I stream using Tesla or thru my carrier.

I own a Model 3 as my winter car and Mercedes SLC as a summer/fun car. I don't need navigation. I'm pretty good at driving around my city. Maybe once or twice a year do I travel and find it useful. However I use navigation everyday to route me around traffic, so the navigation will be useless to me in the Model 3 with out traffic and I find the price to be outrageous.

I'm sorry that you can't see that having more options is better. So having CarPlay support would give me an alternative, but Tesla is just as bad as the auto manufactures were before they offered CarPlay.

After having a horrible delivery experience, horrible quality (car has already been in the shop for 2+ weeks for repairs to the steering system), and now them trying to nickel and dime me for something everyone else gives for free, I won't be buying or recommending a Tesla to anyone.

Who gives you exactly what Tesla gives you for free?

You talk about having a Mercedes and Tesla yet carry yourself like someone who shouldn’t be owning any of these cars crying about a $10 monthly fee for internet usage.

Think about it from a business POV, how can they possibility sustain the cost of allowing all their services for FREE that use significant data? Build it into the price of the car? What about the people who don’t need/want it?

I’m not even sure you’re a real human, possibly a troll.

One sentence you say you don’t need navigation, 2 sentences later you say you use it EVERYDAY.

Embarrassing display of thought your post is.

 

[neurocutie]

At $10/mo its not a lot but it also means that Tesla isn't making money on it -- its not a revenue stream. So then Tesla should make other options available too, i.e. it should be possible to provide your own Wifi (hotspot) and replace all the functionality of Premium Connectivity. Or better would be also allow BT Internet tethering to your phone, which I believe some other cars now allow.

 

[willow_hiller]

Any SR owners does live traffic show up on the trial ? or do you have to subscribe?

It showed up for me without subscribing.

 

[happyzod]

At $10/mo its not a lot but it also means that Tesla isn't making money on it -- its not a revenue stream. So then Tesla should make other options available too, i.e. it should be possible to provide your own Wifi (hotspot) and replace all the functionality of Premium Connectivity. Or better would be also allow BT Internet tethering to your phone, which I believe some other cars now allow.

$120/year is a revenue stream. They are in fact increasing earnings by charging for the service. In prior years, the accounting and gross margin would factor in the free unlimited connectivity. Now it is not.

 

[dmurphy]

$120/year is a revenue stream. They are in fact increasing earnings by charging for the service. In prior years, the accounting and gross margin would factor in the free unlimited connectivity. Now it is not.

... if only it were that simple. I'm not an accountant, don't play one on TV, but it all depends in how the charges are categorized.

Previously, since they were company-paid, the entire wireless contract could've possibly been treated as a G&A expense. Cost of operating the business vs. cost of the product itself, therefore, it wouldn't affect product gross margin calculations.

Now, it's a separate product line altogether. For all we know, it's either margin neutral or even possibly negative, once you factor in the cost of program management, etc.

Any company with good accountants and better attorneys can get things like this treated in a positive way, but it's almost never as straightforward as it seems .......

 

[ALSETJC]

This is again why we need connectivity options such as Android auto and Apple Carplay. It was fine that Tesla didn't have it because the connectivity was baked into the car and included. Now it is not so they are now behind other car manufacturers. I will be paying if it ever come to Canada but unless there are more options they are following not leading .

 

[ivy_]

This is again why we need connectivity options such as Android auto and Apple Carplay. It was fine that Tesla didn't have it because the connectivity was baked into the car and included. Now it is not so they are now behind other car manufacturers. I will be paying if it ever come to Canada but unless there are more options they are following not leading .

Neither of those options are free, and both Apple and Google dictate UI functionality to the automaker, doing things like prioritizing Apple Maps over built in navigation.

I do like the messaging via CarPlay in my BMW 3,
But there is so much baggage that comes with it, I’d just assume I didn’t have it.

 

[RonFTW]

You guys really don’t understand how software works if you think they should offer Car play or android auto

Those features are extremely obtrusive to the software UI, and are you even aware of all the other software (autopilot) that’s already running on the car that would need to function seamlessly with car play and android auto?

All other car makers software is not critical to the car experience like Tesla, that’s why they can offer car play and android auto.

In order for Car Play or Android Auto to work they would have to specifically cater their software to Tesla cars, not the other way around.

 

[Mojito]

Last I heard Elon said it would be around a $100 year. I think $9.99 is a bargain and thrilled Elon was true to his word again.

Both GM and FCA (Chrysler/Fiat) want way more and you get way less.

I doubt it will go up for a while.

Where do I sign up.

I agree had a chevy Bolt paid lot more and got less , I have been waiting to be able to purchase premium connectivity for 7 months when i first heard about it. Thank you....

 

[DrMrEd]

FYI, during my recent test drive (ordered 11/23, delivery 12/23) the sales guy did tell me that the 'premium connectivity' is currently free, but that it will cost $100/yr after the first year. He was a little off vs $10/month, but at least for new buyers the expectation to pay for this service is being set appropriately.

 

[Lobstahz]

I have lifetime premium, I ordered in June 2018, but if I didn't, I would not pay for it.

I don't use the satellite maps as they load too slowly to be useful.

I find the traffic visualization to be hard to read. Seriously why do you show me traffic coming the opposite way of my route? It's not relevant at that time, hide it and focus on what is most pertinent to the task at hand. Ie only traffic info on my routed path in the direction I'm going.

The traffic updates are too slow to be all that useful to me. I find myself validating Tesla's info with Google more often than not. So why pay for a thing I don't trust/use?

All the streaming stuff - absolutely could not care less. I listen to podcasts via USB or BT and have no need for video streaming in my car.

The options they've chosen to make premium are not valuable to me and as such I'd happily save my $10 a month.

 

[happyzod]

... if only it were that simple. I'm not an accountant, don't play one on TV, but it all depends in how the charges are categorized.

Previously, since they were company-paid, the entire wireless contract could've possibly been treated as a G&A expense. Cost of operating the business vs. cost of the product itself, therefore, it wouldn't affect product gross margin calculations.

Now, it's a separate product line altogether. For all we know, it's either margin neutral or even possibly negative, once you factor in the cost of program management, etc.

Any company with good accountants and better attorneys can get things like this treated in a positive way, but it's almost never as straightforward as it seems .......

Let's go to the 10-Q to see what is included in their cost of sales. Remember, Revenue - Cost of sales = Gross Profit.

Cost of automotive sales revenue includes direct parts, material and labor costs, manufacturing overhead, including depreciation costs of tooling and machinery, shipping and logistics costs, vehicle connectivity costs, allocations of electricity and infrastructure costs related to our Supercharger network, and reserves for estimated warranty expenses.

Notice the wording. They factor the connectivity as a cost of sales, not an operating expense.

 

[ALSETJC]

You guys really don’t understand how software works if you think they should offer Car play or android auto

Those features are extremely obtrusive to the software UI, and are you even aware of all the other software (autopilot) that’s already running on the car that would need to function seamlessly with car play and android auto?

All other car makers software is not critical to the car experience like Tesla, that’s why they can offer car play and android auto.

In order for Car Play or Android Auto to work they would have to specifically cater their software to Tesla cars, not the other way around.

I know how software works and it does not have to be intrusive. It can be no different than having a backup camera on screen or a browser window. With it I can use any software for music on screen and use Waze, not to mention Google Assistant. I drive most of the time with TeslaWaze which is less than ideal.

No, these apps do not interfere with anything with the Tesla system. It simply reads the cars speed and taps into the Bluetooth audio. it does not take over the entire car! Lol

 

[dmurphy]

Let's go to the 10-Q to see what is included in their cost of sales. Remember, Revenue - Cost of sales = Gross Profit.

Cost of automotive sales revenue includes direct parts, material and labor costs, manufacturing overhead, including depreciation costs of tooling and machinery, shipping and logistics costs, vehicle connectivity costs, allocations of electricity and infrastructure costs related to our Supercharger network, and reserves for estimated warranty expenses.

Notice the wording. They factor the connectivity as a cost of sales, not an operating expense.

Yep, they've got it categorized as COGS. Makes sense... just wasn't sure what kind of accounting wizardry they were applying; I guess I'm too used to customers who apply every trick in the book.

Thank you for doing my homework for me!

 

[Ryan H]

My apologies if this has already been asked. I've scanned some of the pages in this thread.

Does Standard Connectivity include cellular data for communication with the phone app, like when the car is in a parking lot and nowhere near Wi-Fi?

 

[DopeGhoti]

Not sure if this data point is in the previous 25 pages, which I just skimmed, but:

Purchased my LR/AWD in September of this year. No email from Tesla about connectivity. But if I go into my Tesla Account page and into my car's details, it now shows I have complementary premium connectivity until September of 2020, so it looks like folks who were not grandfathered in get a free year from date of purchase.

While I'm happy to pay for the service once my year is up, it is unfortunate that it was not made clear during the sales process that the "Premium Connectivity" included with the purchase of the car was essentially either a one-year trial, or a ~$120 feature rolled into the price tag.

 

[seattlite2004]

I agree had a chevy Bolt paid lot more and got less , I have been waiting to be able to purchase premium connectivity for 7 months when i first heard about it. Thank you....

Then... why did you pay? Just use your phone.

 

[OCR1]

While I'm happy to pay for the service once my year is up, it is unfortunate that it was not made clear during the sales process that the "Premium Connectivity" included with the purchase of the car was essentially either a one-year trial, or a ~$120 feature rolled into the price tag.

What sales “process” are you referring to? Most of us just place and order online, give them a deposit and then wait for our cars to be ready. The online description of the interior states “one year included”. If people don’t read the description Tesla can’t do anything about it.

 

[ngogas]

It’s 10 bucks. You own an expensive high end model 3s. Let’s not whine. You have the option for subscription or not. At least there is an opt out.

 

[Knightshade]

You guys really don’t understand how software works if you think they should offer Car play or android auto

This sentence is not gonna age well here in a second....

Those features are extremely obtrusive to the software UI, and are you even aware of all the other software (autopilot) that’s already running on the car that would need to function seamlessly with car play and android auto?

Autopilot and the infotainment functions run on completely separate hardware.

Infotainment runs on the MCU, which doesn't impact AP at all since it runs on its own independent computing system.

You can even reboot the MCU, while driving, and while running AP, and everything keeps working fine.



Now, both systems display info on the same big screen- but it'd be trivial for AA/CP to appear in a window on the right side of the UI far away from where any AP related info displays and not interfere with anything. AA/CP in a window (instead of taking up the whole screen) has been a thing for a couple of years now.

Obviously folks wouldn't be able to use Nav-on-AP if they choose to use CP/AA for maps instead of the built in system.... but that's just as true today if they choose to nav on their phone instead of the built-in nav.