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Tesla to offer ‘Premium Connectivity’ internet package starting July 1

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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.

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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.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla just told us twice that Model Y L is coming to the U.S.

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Credit: Tesla

Tesla just told us twice that the Model Y L is coming to the U.S., and two social media posts definitely just tipped the company’s hand, as if they wanted it to be any other way.

The two social media posts basically confirm that the slightly longer version of the Model Y will be heading to the United States soon, and many have speculated that the company could launch the vehicle as soon as this weekend.

The first post was directly from Tesla, and it showed an incredibly long Dachshund, with words above that said, “Looking forward to the long weekend.”

Anyone who knows Tesla knows the company loves to troll its fans and have fun, and this is a perfect example of that. While not a direct acknowledgement, Tesla is very involved on social media, especially CEO Elon Musk’s platform X, and the company is well aware of what is being discussed within the community.

With recent sightings of Model Y L test mules in California, peeks of the vehicle at Giga Texas, and a large call for the car to come to the U.S., Tesla is simply stoking conversation with this.

However, the company also made another move that was recognized on social media. Tesla has a large gallery that includes photos of its products so media and others can use them. This gallery applies to the U.S. market specifically, unless otherwise specified.

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Tesla uploaded a Model Y L to the Gallery last night:

This seems to be another indication that the Model Y L is coming to the United States.

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Musk said last year that the Model Y L could make its way to the United States late this year, but it was not something that was set in stone by Tesla. The company definitely needs to establish something in the SUV market that is larger than the Model Y, and the Model Y L might be the answer.

Even still, there are consumers out there who would love Tesla to develop something even larger, like a competitor to the Tahoe or Expedition. Tesla has not really given much of an indication that it will go in that direction.

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Tesla is using vehicle microphones to improve build quality: here’s how

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Credit: Tesla

Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.

It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.

As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.

The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.

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It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.

Tesla’s ‘megacasts’ are key to massive build quality improvements

While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.

This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.

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Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.

The full interview with Lars Moravy is available below:

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Investor's Corner

Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent

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Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.

Tesla reported it delivered 467,762  Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.

The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.

Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.

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For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.

Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.

Tesla sends production Cybercab with no steering wheel, pedals to on-road testing

The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.

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Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.

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