Is Tesla’s New Subscription Service Worth It?

Is Tesla’s New Subscription Service Worth It?


About the Author: Michael Flood

100 Comments

  1. Id rather get a unlimited data plan added upfront with purchase than pay monthly, same with a supercharge plans. Its just more convenient to pay once and just enjoy the supercharge and data plans, i have music video playlists on YouTube id love to hear while driving. I would like my disney+ tunes, lots of great music there too.

  2. 8:30 it actually will make a huge difference. You are talking about net revenue. Against their gross revenue it isnt much but it is a huge increase in their net revenue

  3. Elon is a genius and with Star Link etc, you will be taken care of. Just pay your $10 a month, it will be worth it in the long run, IMHO.

  4. When you buy a product that you cannot use without it being connected electronically to the company you bought it from you have to expect that anything great at the time of purchase can, at a later date, become an expense, or more of an expense, at the discression of the manufacturer.
    You buy a $150,000 plus car (originally S and X now the 3) It started with the "Free charging for life" now more expensive than home charging in many countries. Soon you may have to pay a monthly charge to have access to the Supercharger network (plus the KWH cost) if you think you may want to use it one day on a trip. Now you have to pay for the data streaming service even tho it will always be there for the OTA updates. Soon the same may happen for your Power Wall battery – having to pay a monthly charge to get OTA updates and use the PW app. Even your Tesla PV roof tiles inverter communication – monthly charge.

    $10 per month now – what in the future. This may be just the start.

  5. I fail to see how is this good for me as a consumer… just another bloodsucking company. I was considering buying a Tesla… not anymore. When I buy a car I want to know exactly what I can count on. Who assures me that they won´t start charging for some other stuff that they put in the car? And I´m fed up with people that said: "oh is just 10 dollars a month"… if you add up all the 10 dollars a month of everything that, now, every company want´s to charge you, it´s a lot of money.

  6. How do people like this. This is not good for us as customers. And this guy is talking about this will create jobs. How does that matter to me as a customer

  7. dude, you arent as stupid to have 200USD worth of monthly subscriptions that you forgot about. If you sell out for an ad at least be transparent about it and dont tell such a bs story. Its fine that you want to make more money with what you are doing. but the way you chose to do that isnt cool. unsubscribed Ben…

  8. I bought mine is Sept 2018 and was told I'd still have lifetime data on the vehicle. hmm. now i need to figure out if it's true or not.

  9. The adoption rate to pay to play online on consoles (a core feature of many games nowadays) is only 50% on the market leader, less on others. I think your estimation is wayyyy to high considering the map is free, most people won't care about the extras

  10. I know many people that cant drive due to medical conditions. Two will never be able to. Tesla self driving vehicles will truly be life changing chapter. I love all you Tesla folk out there. <3

  11. You're dreaming at this stage. 5g I may think about it but I have enough data on my iPhone to stream as much as I want. This is only for America as the rest of the world has tuff laws for what was purchased at the time is what stays. If Tesla did say it was only free for a certain time far enough but Tesla did not say this. New vehicle purchases Tesla can offer this service but not existing vehicle owners.
    Good luck Tesla trying this on the rest of the world.

  12. I pre ordered cybertruck with full self driving enabled, they better not come out with $10 subscription after then car is delivered to me. I rather pay 10 dollars monthly than 7k that I have to near truck release.

  13. This is not SAS for Tesla because this is ATT's service they are trying to recoup the money they are already loosing every month. With just $10 for cell service they might be breaking even and still loosing money on those who don't purchase the service since they have to provide it anyway at a lower bandwidth. I don't think this is a profit center for Tesla and I don't think there will be a 90% take rate. Will probably be 50% so at best they'll be loosing money at a slower rate than before.

  14. What Tesla should develop under a subscription model is cloud based security video storage. Do away with the antiquated USB video storage and move the video files to the cloud. When a sentry event occurs you receive a mobile notification and can then view the event footage from your cloud account.

  15. So let me get this straight… they are making people pay to be able to use a music streaming service, which they already pay for? Alright, f this, i'm waiting for the competition to catch up before i buy a new car.

  16. As a rule I despise SAS for previously free, 1 time purchases, or duplicate SAS services or goods. Dick move to inflict this on customers who already have their cars.

  17. Nice video, as always. However, something a lot of people seem to forget is that (at least in Europe) the most part of Teslas are company cars that are leased. How will that work? Will it be included in the lease? Will the owner have to pay for it themselves (and then the car doesn't have it in the lease or for the next owner)? Will the company pay for it?
    As said, not a lot of Model S and X cars are actually bought. And those that bought it, have most likely stretched their budget as far as they can already. While I agree that $10/month is not that much, for some it will be too much.
    I'm personally in the camp of a lease car with free connectivity. But what will Tesla do when I trade in the car? Will they remove it and get the next owner to pay for it? Will it stay with the car, just as my free supercharging does? Still a lot of unanswered questions here…

  18. The cost of entry is already high enough. I doubt this will accelerate the electrification of vehicles. The cheapest new car can be bought for 17k and the cheapest Tesla is more than double that. Now add an additional $10 a month. I see signs a greed and unfortunately my next car will not be a Tesla since I am avoiding more monthly payments

  19. I think
    We cam simply use our smartphone for streaming if we are sitting in parking lot or somewhere
    And people are more habitual to it

  20. No what is crazy is a lot of new cars let you connect the Bluetooth and you get to use your Google maps and stuff for free through the radio 😁😁 😁

  21. Tesla's refusal to support CarPlay and Android Auto basically locks you into having to use this "premium" service. This is nothing to celebrate. What's next? Charging for OTA updates?

  22. Bmw already charge for map updates and data. It’s a one of payment each year of about the same amount. Doesn’t include nearly half the data or features though…

  23. I'm not a Tesla owner yet and I'm also a Shareholder but I don't think I would pay for the service. Essentially I'd be paying for both my music steaming service and the Tesla one. I can simply use Bluetooth.

  24. Most of the comments here (as well as Ben himself) misunderstand the impact of this financially.

    The important insight here is that Tesla is already paying the cost of this stuff. Therefore, *relative to their current quarterly results*, all of this will go straight to profit.

    Also, although Tesla has high revenue and this looks like a drop in the bucket, their actual profit is much smaller, on the order of +/- $200M per quarter. So quarterly revenue of $20M will be a 10% increase in profitability.

  25. What makes you feel that the chinese will allow Tesla to have youtube, Hulu or HBO or even spotify in their cars? You know that chinese have their own version of these services.

  26. Look to Adobe and Microsoft for the results of SAAS. Both lost billions in sales because people don't want to rent something they want to OWN it so they can CONTROL it. Graphics software and Microsoft Windows/Office became unpopular pretty much right after they went this route.

    People who have to pay subscriptions for a lot of things, often end up making do with less so they don't forget to pay a monthly and lose something they depend on.

  27. You can buy a lot of, cellular / mobile data, for $10.00 a month, with any provider, and use your own sim-card. With the bulk data discounts, Tesla is getting, it aught to be able to do better than that…

  28. Tesla subscription
    Do we have to pay for maps now or does that still come with the car?
    In the 1980’s I drove all over South Bay up to Santa Monica and Westwood and all we had was a physical map to look at. We did pretty well. Video streaming, karaoke, games… useless in my mind. However being able to edit videos or audio while waiting to charge would be a great idea. I like to study or get some work done while I charge. There is no time to frivolously wile away the hours!!!

  29. 90% take rate seems vastly overoptimistic to me. I'd guess reality is closer to 5-10. They had to charge something or else people would nuke Tesla's at&t bill every month from the youtube videos they watch in there. I was excited about caraoke, but I'll live without it and I'm guessing most people who bought it because it's a practical and environmentally responsible daily driver arent going to sign up for yet another subscription.

  30. The most useful feature is the live traffic on maps. Everything else is "nice to have" but in no way worth $10/month. Not when I can use my phone as a hot spot and still watch Netflix while charging.

  31. I think it is wrong to start charging owners who they told it was included. It should be started with new orders. Are they next going to say that anyone with free supercharging for life will now have to pay for it?

  32. I would have no problems with it if I could connect to starlink for free with any device with this subscription. (I care about the latency not bandwidth)

  33. I wish they would have 'grandfathered' those of us who bought cars before the announcement but after 2018. Are they going to have us "subscribe" to other things the car does for us now?

  34. I get free navigation with my cell phone and live traffic updates through google maps on the phone so why should I pay for it through tesla.
    Same with the videos.

  35. i purchased on november 2018. Before I got my model 3 performance, I asked the manager in palm spring tesla California if the premium is free and he told me yes it is lifetime free except the supercharged is 6 months free. Now i got email from tesla my premium is going end this December 31, 2019 and have to pay the premium. This is so sucks. I purchased tesla solar, and cybertruck try motor & etc… now i have 2nd thought for the cybertruck. Very disapointed.

  36. or if you are someone who gets free cars from referrals………… Of course then you can afford the service. But if you paid 100k for your car, nickel and diming is stupid. Same with Super Charging. You paid the extra for the convenience.

  37. Only idiots with more money than marbles are going to let Tesla fleece them like that. Just about everyone who owns a Tesla will have their cellphone with them, so…the smart ones will just hotspot it. Elon will be lucky to get 20-25% of Tesla owners opting for this.

    90%???? LOL…Oh Ben, please try to get healthier in 2020. Lay off the Tesla koolaid. 😉

  38. You’ve missed a key fact. There is no subscription service in Europe or elsewhere, it does appear to be a US only thing currently – so the projections including Gigafactory 4 built cars, and shipments anywhere else aren’t accurate until it’s available in outside the US. No sign of that yet.

  39. To be fair they did warn people of this month ago that free data is coming to an end. They also said in the beginning that it (being data) was never intended to be free forever

  40. customer service sucks / crappy browser / horrible navigation – mobile hotspot / unlimited data plan / 17” notebook / much better option

  41. Just kill that crap and give us Apple CarPlay, Android Auto. And offer Sat radio. I wouldn't use Sat radio but just about every other car in these price ranges has these three features. When I had a Toyota, they didn't offer Apple CarPlay but had their own Toyota Entune feature. Just junk from an otherwise great car company.

  42. I was told that my connection was free for a year, then I'd have to pay $100… I'll be 3 months short of a year free… I'm not upset because I always expected to pay but I don't like receiving misinformation…

  43. Happy to pay $10 a month for premium features. I've paid more than that a month for Netflix and I only watch one movie a month if that. I'm basically just giving them my money lol. $10 bucks…ppfftt…no biggie.

  44. I got mine a few months ago and my premium interior was comped because I originally ordered the standard interior and they apparently needed to move the car i ended up with. I haven't got the email saying when my premium service is going to end and it kinda scares me. they did say one year though… so i'm hoping it at least lasts until september next yeat

  45. TSLA has been paying for so much data, software development, OTA Updates, software improvement, games, etc… for a VERY LONG TIME!!! It all costs $! I am surprised it took this long for TSLA to charge $9.99 a month for SAS to their car models. I suspect TSLA was waiting to charge $ for their SAS until the features & their value were so good & the users were so familiar, dependent, addicted, etc… (pick your cup of tea) that TSLA knew they would get a high % adoption rate. It will be @ least an 80% adoption rate based on a very loose application of The Pareto Principle. Sometimes known as the 80/20 Rule. I only mean that the adoption rate will never be less than 80% when averaged out annually for all models still on the road & in service! This is a good thing to see & shows that the maturation process of TSLA continues to move forward with more precision. Two thumbs way up!! 👍👍

  46. Instead of loosing money on LTE they will keep a neutral flow of cash so they don't loose money. I mean I have unlimited charging from a friend code so charging costs are 15 $to 0$ a month.

  47. Well I initially put down a deposit on the first day, I think the important date is when you configured your M3 as that is when the page saying you get premium connection for the first year and paid after. So when did you configure your M3 and put down the large deposit not the initial 1000?

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