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Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

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11–20 of 75 posts

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#12
Maybe this is just pointless pedantry but...

This isn't a software upgrade. It's an on/off switch.

There's a difference. A software upgrade implies some new code which cost real money to develop is being made available. That's not the case here.

As others mentioned, manufacturers do this already for cost reasons (reducing variation) on other software, but in that case it's legitimately a software upgrade because the new software being turned on cost actual money to develop which they recoup by putting it behind a paywall.

In this case, it probably actually cost Tesla money to implement the software to cap the battery.

What we have here is software being used to implement a paywall on hardware to recoup hardware development costs (presumably developing the 75 battery cost more than developing a 60 would have). It's a software-controlled hardware upgrade which happens to not actually be implemented as an upgrade because of cost control reasons.

I don't know that there is precedent for this precise business model.

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#13

Does Tesla try to justify this practice anywhere? Buying a software for a superior navigation system I understand but hobbling the performance of a car seems pretty shady.

On the contrary, I think it's a win-win for everybody. Tesla does not have to have two different assembly lines - for a base model and a higher priced model. Consumers can upgrade to the higher priced model through software without invalidating their warranty and adding hardware.

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#15
Hm, do the batteries used by Tesla have the same kind of "extended lifespan if rarely fully charged" issues that apply to the kind of cells used in most laptops? If so, then I'd be curious about whether this is implemented as a cap on the battery charge - I might actually prefer the lower capacity if it means my batteries last years longer.

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#16
I don't get the controversy.

You may have a 75 kWh in your car, but you didn't pay for it. You paid for a 60 kWh so that is what you get to use.

Tesla has merely optimized the logistics a the battery upgrade, pre-delivering it and pre-installing it, doing 99% of the work at no charge. When you pay for it, they can make the upgrade as easy as an in-app purchase.

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#17

Since MS can't even get me to use Windows 10 for free I doubt it. reads article Oh. An anti-feature. > The only difference is that the software on the lower-end version limits the capacity of the S60’s battery, crippling its range. In fact, owners can instantly transform a lowly S60 into an S75 at any time for a fee of $9,000 ($500 more than if they’d initially bought it that way). They don’t even have to bring the c…

This might be a great way to avoid high state sales taxes in certain states.

When I had to register my car in a different state the ad valorem taxes and fees were $500 in the first year.

So you buy the 60, after you register the car and get the license plate, you pay $9k and save money on taxes.

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#18
post #5

This is nothing new. Many car manufacturers have premium features already built in to the car but disabled in the software (because its cheaper to build fewer variants). Volkswagen charges a premium for remote window control despite all cars being manufactured to support the feature.

this is very different, the closes comparison i could think of is bmw selling a 320i and 328i which both have basically the same engine running different amounts of turbo pressure, but EVEN THERE the engine internals have the be quite a bit different.

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#19
And this is different from the "GPS Navigation" .."upgrade" most other manufactures make you pay $2,000 - $3,000 for...when the GPS is built in by default to almost every new car now.

This is actually a really smart move by Tesla. They are able to offer a lower cost version of the car, without changing anything on the manufacturing side. Thus increase sales through a lower price entry point.

Re: Tesla’s Betting You’ll Pay $9,000 for a Software Upgrade

#20

I don't get the controversy. You may have a 75 kWh in your car, but you didn't pay for it. You paid for a 60 kWh so that is what you get to use. Tesla has merely optimized the logistics a the battery upgrade, pre-delivering it and pre-installing it, doing 99% of the work at no charge. When you pay for it, they can make the upgrade as easy as an in-app purchase.

My only complaint would be that the extra weight of the batteries reduces my range to no benefit to me, should I keep my car at the S60 level.
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