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Tesla to offer ‘Premium Connectivity’ internet package starting July 1
Tesla will be introducing new cellular connectivity packages for the Model S, Model X, and Model 3 starting July 1. According to the California-based electric car maker, Tesla owners who order their vehicles from July 1 moving forward will have the option to select between a “Premium Connectivity” package and a “Standard Connectivity” package. The new internet packages would be rolled out to all of Tesla’s markets, including Europe, Australia, and Asia.
The Premium Connectivity package includes satellite maps with live traffic visualizations and satellite-view maps. In-car streaming music and media, as well as over-the-air updates via cellular data, are also included in the package, together with other applications and services that are set to be introduced in the future. Full pricing and details are expected to be announced soon, but Tesla expects the internet package to cost roughly $100 per year, or $8.34 per month.
Customers who order a Model S, Model X, or Model 3 with the Premium Interior Package on or after July 1, 2018, will be receiving a year’s worth of Premium Connectivity for free. After the 1-year period is over, owners would be able to select the connectivity package option they prefer. Cars ordered before July 1, including Tesla’s entire fleet today, will not be impacted by the introduction of the new connectivity package options.
Tesla’s Standard Connectivity package includes basic maps and navigation, as well as music and media features through a smartphone’s Bluetooth connection. Over-the-air updates are downloaded through WiFi, though Tesla states that firmware updates related to vehicle safety would be received through cellular at no extra cost. Customers can upgrade to the Premium Connectivity package at any time through the electric cars’ center console.
The main difference between Tesla’s two internet packages lies in live traffic visualization, firmware updates, and in-car streaming. While all vehicles regardless of internet package would feature Tesla’s new and improved Navigation, electric cars with the Standard Connectivity package would not see live traffic visualizations, which are represented by green, orange, and red lines on the vehicle’s maps. The internet browser for the Model S and Model X and music streaming using the car’s cellular data itself would also be unavailable.
Tesla’s improved Navigation, pictured here, would still be accessible to Tesla vehicles with Standard Connectivity packages. [Credit: Black Tesla via YouTube]
Particularly admirable, however, is the fact that all current Teslas on the road today will have the Premium Connectivity package for free for the lifetime of the vehicles. This is a pleasant surprise considering the company’s expectations outlined on its Q4 2013 Shareholder Letter, where Tesla noted that Model S customers would get free data connectivity for four years before the company starts charging for cellular data use.
“To further enhance the driver experience, new Model S customers will now receive free data connectivity and internet radio for four years. As an added benefit to our existing Model S customers, the free four year period starts on January 1, 2014. To be fair to all, in rare cases, a customer may be charged for extreme data use.”
Overall, Tesla’s introduction of its new connectivity packages could be seen as one of the strategies that the company could adopt to achieve its target of hitting profitability by Q3 or Q4 2018. As the size of Tesla’s fleet grows, after all, it becomes more and more costly for the company to provide complimentary cellular internet access to all its vehicles on the road. At around $100 a year or roughly $8.34 per month, Tesla’s Premium Connectivity package is very reasonable, costing less than the price of LTE services for the Apple Watch Series 3, which commands an additional $10 to a mobile phone subscription on AT&T, T-Mobile, and Verizon.
Tesla’s new Full Self-Driving pricing strategy will eliminate one recurring complaint that many owners have had in the past: FSD transfers.
In the past, if a Tesla owner purchased the Full Self-Driving suite outright, the company did not allow them to transfer the purchase to a new vehicle, essentially requiring them to buy it all over again, which could obviously get pretty pricey.
This was until Q3 2023, when Tesla allowed a one-time amnesty to transfer Full Self-Driving to a new vehicle, and then again last year.
Tesla is now allowing it to happen again ahead of the February 14th deadline.
The program has given people the opportunity to upgrade to new vehicles with newer Hardware and AI versions, especially those with Hardware 3 who wish to transfer to AI4, without feeling the drastic cost impact of having to buy the $8,000 suite outright on several occasions.
Now, that issue will never be presented again.
Last night, Tesla CEO Elon Musk announced on X that the Full Self-Driving suite would only be available in a subscription platform, which is the other purchase option it currently offers for FSD use, priced at just $99 per month.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Having it available in a subscription-only platform boasts several advantages, including the potential for a tiered system that would potentially offer less expensive options, a pay-per-mile platform, and even coupling the program with other benefits, like Supercharging and vehicle protection programs.
While none of that is confirmed and is purely speculative, the one thing that does appear to be a major advantage is that this will completely eliminate any questions about transferring the Full Self-Driving suite to a new vehicle. This has been a particular point of contention for owners, and it is now completely eliminated, as everyone, apart from those who have purchased the suite on their current vehicle.
Now, everyone will pay month-to-month, and it could make things much easier for those who want to try the suite, justifying it from a financial perspective.
The important thing to note is that Tesla would benefit from a higher take rate, as more drivers using it would result in more data, which would help the company reach its recently-revealed 10 billion-mile threshold to reach an Unsupervised level. It does not cost Tesla anything to run FSD, only to develop it. If it could slice the price significantly, more people would buy it, and more data would be made available.
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Tesla Model 3 and Model Y dominates U.S. EV market in 2025
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.
The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.
Model 3 and Model Y are still dominant
According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.
The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.
Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.
Tesla’s challenges in 2025
Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.
Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue.
Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas.
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Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Tesla won dual categories in the Euro NCAP Best in Class awards, with the Model 3 being named the safest Large Family Car and the Model Y being recognized as the safest Small SUV.
The feat was highlighted by Tesla Europe & Middle East in a post on its official account on social media platform X.
Model 3 and Model Y lead their respective segments
As per a press release from the Euro NCAP, the organization’s Best in Class designation is based on a weighted assessment of four key areas: Adult Occupant, Child Occupant, Vulnerable Road User, and Safety Assist. Only vehicles that achieved a 5-star Euro NCAP rating and were evaluated with standard safety equipment are eligible for the award.
Euro NCAP noted that the updated Tesla Model 3 performed particularly well in Child Occupant protection, while its Safety Assist score reflected Tesla’s ongoing improvements to driver-assistance systems. The Model Y similarly stood out in Child Occupant protection and Safety Assist, reinforcing Tesla’s dual-category win.
“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.
Euro NCAP leadership shares insights
Euro NCAP Secretary General Dr. Michiel van Ratingen said the organization’s Best in Class awards are designed to help consumers identify the safest vehicles over the past year.
Van Ratingen noted that 2025 was Euro NCAP’s busiest year to date, with more vehicles tested than ever before, amid a growing variety of electric cars and increasingly sophisticated safety systems. While the Mercedes-Benz CLA ultimately earned the title of Best Performer of 2025, he emphasized that Tesla finished only fractionally behind in the overall rankings.
“It was a close-run competition,” van Ratingen said. “Tesla was only fractionally behind, and new entrants like firefly and Leapmotor show how global competition continues to grow, which can only be a good thing for consumers who value safety as much as style, practicality, driving performance, and running costs from their next car.”
Tesla Full Self-Driving pricing strategy eliminates one recurring complaint
Tesla Model 3 and Model Y dominates U.S. EV market in 2025
