With the advent of connected cars, the emergence of in-car subscriptions seems inevitable. But while subscriptions to services like Tesla’s Full Self-Driving suite are quite reasonable considering the full price of the system, other carmakers such as BMW have opted to introduce in-car subscriptions for features that are otherwise built-in already, such as heated seats.
The trend of in-car subscriptions has caught the eye of lawmakers in New Jersey, two of whom took it upon themselves to draft a proposed bill that would ban car companies from offering subscriptions for features that “utilizes components and hardware already installed on the motor vehicle at the time of purchase.” The features must also be able to function without ongoing expenses to a “dealer, manufacturer, or third-party service provider.”
This suggests that if components for features such as heated seats are already equipped on vehicles, car manufacturers should not charge customers for their activation. Systems like Tesla’s Premium Connectivity, however, would likely still be allowed under the proposed bill since the EV maker spends resources maintaining the system.
Following is the lawmakers’ statement from the proposed bill.
“This bill prohibits a motor vehicle dealer or manufacturer of motor vehicles sold in this State from offering to a consumer a subscription service for any motor vehicle feature that (1) utilizes components and hardware already installed on the motor vehicle at the time of the vehicle’s purchase or lease; and (2) would function after activation without ongoing expense to the dealer, manufacturer, or third-party service provider. The provisions of this bill do not apply to any third-party service provider that offers features such as satellite radio or in-car Wi-Fi.
“The bill defines ‘motor vehicle feature’ to mean any convenience or safety function included on the motor vehicle, such as heated seats or driver assistance that typically is offered to a consumer as an upgrade at the time of purchase or lease of the motor vehicle. In addition, the bill defines ‘subscription service’ to mean a service provided on a subscription basis in exchange for a recurring payment, including, but not limited to, a weekly, monthly, or annual payment charged to and made by a consumer.
“A violation of the bill’s provisions is an unlawful practice under the consumer fraud act punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
“The sponsor notes that car companies are increasingly seeking to charge consumers a subscription fee to access certain features on their vehicles, such as heated seats, even though the components necessary for the feature to function are already installed on the vehicle at the time of sale. When a consumer subscribes to the feature, the car company uses software to remotely activate the feature during the subscription period.
“Car companies assert that a subscription-based business model would provide more choice to the consumer, but the practice requires installing all of the necessary components and hardware on the vehicle before the consumer decides to subscribe to the feature, which will likely raise the purchase price for every consumer, whether they intend to subscribe to the feature or not. The sponsor asserts that during this time of rising consumer prices, it is important to guard against business practices that primarily serve to increase corporate profits.”
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Elon Musk
Tesla sues former Optimus engineer for stealing trade secrets
Tesla is suing a former engineer who worked on Optimus after he left and immediately started a robotics company that achieved quick development of a hand.
Tesla is suing former Optimus engineer Jay Li in federal court after accusing him of stealing trade secrets and using them to enable a startup he founded after he left.
Li is accused of stealing confidential files and using them to help get his company, “Proception,” off to a rocking start. Tesla says the files Li took helped his new startup “shortcut the typical development process” for robot hands, something that took Tesla years to develop and evolve.
The company said in the complaint (via Reuters):
“Through Li’s pilfering, Defendant Proception purportedly achieved in a matter of months what it has taken Tesla over four years, hundreds of employees, and billions of dollars to achieve.”
Li was an employee at Tesla for several years, working on the Optimus sensor team from 2022 to 2024. The company says it utilized and devoted “extraordinary resources” to the development of Optimus, which has come a long way since its unveiling several years ago.
Tesla Optimus to receive hands with 22 degrees of freedom later this year
Li allegedly downloaded confidential files related to Optimus’ robotic hand movement research before departing the company. He did not work on the hands at the time. However, he left and swiftly started Proception, as the suit states the company was founded just six days after he left Tesla.
Proception was gloating about its ability to build robotic hands just five months after the company was founded. Tesla says the hands have “striking similarities” to its own design for Optimus.
The company is looking for monetary damages and a court order that would block Proception from misusing the secrets it accuses Li of taking.
This is not the first suit Tesla has filed over trade secrets and confidential information theft. Recently, it accused German-Canadian dual citizen Klaus Pflugbeil of stealing battery-related secrets. He was arrested and sentenced to two years in prison.
Men accused of selling Tesla battery secrets arrested in undercover sting
The U.S. Department of Justice used an undercover sting to arrest Pflugbeil.
Tesla is being represented by Josh Krevitt, Orin Snyder, and Angelique Kaounis of Gibson Dunn & Crutcher.
The case is Tesla Inc. v. Perception Inc., U.S. District Court for the Northern District of California, No. 5:25-cv-04963.
News
Tesla teases new Model Y seating option potentially coming soon
Tesla appears to be ready to launch the new Model Y seating option in the coming weeks.
Tesla teased a new Model Y seating option earlier this week in a promotional email, potentially hinting that it could introduce an arrangement offered on the legacy version of the vehicle.
Back in 2021, Tesla started offering a seven-seat configuration of the Model Y, and there was a lot of speculation about its orientation and the space it would provide. The two additional seats were truly a tight fit for anyone, even kids, as the space for a third row was extremely limited in the Model Y.
Tesla Model Y third-row seats first impressions shared by EV owner
Eventually, Tesla started building the seven-seater with forward-facing seats and very tight legroom dimensions. It was beneficial for some, but many still considered the arrangement to be too confined for their needs.
The company confirmed earlier this year in an interview with Jay Leno that the car would get other configurations, including Rear-Wheel-Drive, which has already launched, a Performance trim, which has been spotted with bumper covers several times this year, and a seven-seat version:
🚨CONFIRMED: Tesla will launch the new Model Y 7-Seater and new Model Y Performance later this year.
pic.twitter.com/AA5ZPa7K4q https://t.co/zkphg11LsS
— TESLARATI (@Teslarati) February 10, 2025
The new seven-seater could be coming soon as well, according to a recent email Tesla sent to customers and fans. In it, Tesla writes:
“Ready for anything with long range seating for up to seven and enough room for everyone’s gear.”
Tesla did have a mysterious Model Y roaming around the Fremont Factory’s test track recently with covered bumpers and what appeared to be strange dimensions.
We thought it might be the compact, affordable model that is set to launch in the first half of the year, but now it seems that the car could have either been the Model Y seven-seater or the Model Y Performance configuration, as they are both expected soon.
We are interested to see if Tesla can squeak out a few more inches of legroom in the new seven-seater, but we’re not holding our breath. Nevertheless, the new Model Y came with quite a few improvements, including suspension changes, acoustic-lined glass for a better cabin experience, and a front and rear bumper redesign, among other things.
There is no doubt it will be a better car than the legacy version.
Elon Musk
Tesla Full Self-Driving’s European launch frustrations revealed by Elon Musk
Tesla plans to launch Full Self-Driving in Europe later this year, but regulatory bodies are proving to make it a bigger challenge than it needs to be.
Tesla Full Self-Driving is set to launch in Europe in the future, but the region’s governing bodies are not giving the suite any chance to move forward, according to CEO Elon Musk, who blames the regulatory processes for robbing citizens of a safer mode of travel.
The automaker revealed late last year that it planned to bring Full Self-Driving to Europe sometime in 2025. However, Musk said that the launch of the suite is being continuously prolonged by both individual and European Union officials, dragging their feet with approvals.
In a post on X on Wednesday, Musk said the company is still dealing with and waiting for approvals from both the Dutch government and the EU’s governing officials, giving an indication that some progress has been made, but ultimately, there are still some bodies that are taking their time:
Waiting for Dutch authorities and then the EU to approve.
Very frustrating and hurts the safety of people in Europe, as driving with advanced Autopilot on results in four times fewer injuries!
Please ask your governing authorities to accelerate making Tesla safer in Europe. https://t.co/QIYCXhhaQp
— Elon Musk (@elonmusk) June 11, 2025
He continued by stating that the delays are “very frustrating” and they “hurt the safety of people in Europe” because of Autopilot’s statistical prowess, which shows it is much safer than human drivers.
Tesla is readying for the launch of a completely driverless Robotaxi platform in the U.S., which is set to occur in the coming days. While the initial rollout of the platform will be reserved for a select few, public rides are slated for June 22, meaning anyone will be able to come to Austin and hail a Tesla Robotaxi through the company’s smartphone app.
The first Robotaxi without a driver was spotted in Austin yesterday and shared on X:
First Tesla driverless robotaxi spotted in the wild in Austin, TX
Musk dropped several hints that the Robotaxi launch, which has been rumored for June 12, is imminent. For now, the operation will take place in Austin and will eventually expand, likely to California next, as noted in past reports. The City’s official website confirmed that Tesla gained a license as an Autonomous Vehicle operator in the City of Austin earlier this week.
Tesla applied for a similar license in California earlier this year.
Tesla sues former Optimus engineer for stealing trade secrets
Tesla teases new Model Y seating option potentially coming soon
Tesla Full Self-Driving’s European launch frustrations revealed by Elon Musk
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