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New Jersey lawmakers seek to prohibit in-car subscriptions

BMW iX1 xDrive30 Credit: BMW

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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.

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“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.”

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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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Autonomous vehicle red tape gets slashed by Trump Administration

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Credit: Zoox

The Trump Administration today made several key moves to help with the deployment of autonomous vehicles by cutting overreaching red tape that has stifled growth and innovation for years.

The moves, which were put forth by the National Highway Traffic Safety Administration (NHTSA), aim to grant temporary exemptions to at least one company currently, although that could expand in the coming months. Additionally, it will work with organizations to develop standards and a sound but efficient regulatory landscape.

Zoox is the only company mentioned explicitly by the Trump Administration in its press release announcing the new terms today. They will receive a temporary two-year exemption that will allow the commercial deployment of up to 2,500 vehicles annually for two years.

There is a potential exemption for Robomart, Inc., which “requests a temporary exemption from certain FMVSS No. 500 requirements for a low-speed vehicle operated by an ADS without a human driver onboard. NHTSA will publish a separate notice seeking public comment on its merits once the initial evaluation is complete,” the agency said.

Here are the five new terms that Secretary Sean Duffy has implemented through the NHTSA today:

  1. Allow Zoox to commercially deploy its robotaxis through a temporary exemption.
    This temporary exemption will allow the commercial deployment of up to 2,500 vehicles annually for two years, subject to an enhanced, adaptable oversight structure that can evolve as Zoox’s technology advances.
  2. Accelerate development of first-ever AV performance standards through a partnership with SAE Industry Technologies Consortia (ITC).
    This partnership will fund a three-year, $5 million “A2SCEND” consortium, bringing together experts to gather data and accelerate creation of the first-ever AV performance standards. This project will inform a single national standard for AV safety to eliminate the patchwork regulatory landscape that has stifled innovation for years.
  3. Publish an interim final rule that allows vehicles manufactured prior to an exemption to be eligible for a commercial deployment exemption.
    This rule will modernize the application process and improve access to exemptions for innovators, including AV developers, by granting the NHTSA Administrator the discretion to apply temporary exemptions to vehicles manufactured prior to the effective date of an exemption grant.
  4. Streamline the application process for Part 555 exemptions by updating guidance and soliciting feedback from the public.
    By updating the Part 555 exemption process—which allows automakers to temporarily sell a limited number of non-compliant vehicles, primarily to test new technologies—NHTSA is aiming to create a more flexible oversight structure for exemptions and summarize recent AV framework activities, including expanded exemption pathways, streamlined crash reporting, and ongoing efforts to modernize Federal Motor Vehicle Safety Standards (FMVSS).
  5. Establish a new Federal Docket for public feedback on NHTSA’s updated safe AV development and deployment guidance.
    NHTSA is updating its technical guidance for AVs for the first time since 2017—focusing on key safety areas like emergency responder interactions, safety management systems, remote assistance, and post-crash behavior to help the industry scale up driverless deployments safely.

Additionally, the NHTSA said it has modernized some safety standards by proposing updates to:

  • FMVSS 102 – Transmission shifting
  • FMVSS 103/104 – Windshield defrosting and wiping
  • FMVSS 110 – Tire placards
  • FMVSS 135 – Braking systems
  • FMVSS 101 – Controls and displays
  • FMVSS 108 – Vehicle lighting
  • FMVSS 111 – Mirrors and rearview display
  • FMVSS 126 – Electronic stability control systems
  • FMVSS 201/208 – Sun visors and warning labels

These changes aim to make the regulatory process for autonomous vehicles more streamlined and efficient, which could help the U.S. gain dominance over autonomous vehicle systems moving forward.

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Elon Musk has a crazy prediction about AI in two years

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Daniel Oberhaus, CC BY-SA 4.0 , via Wikimedia Commons

Elon Musk is, in many respects, one of the biggest and most influential figures in modern-day artificial intelligence.

Given that Tesla, SpaceX, and xAI are all looked at in their respective fields as leaders to an extent, each of them has a heavy influence on the future of AI, even though two of them are not thought of, at face value, as AI companies.

Musk has grand expectations for what is to come with AI, not only as a form of assistance to make human lives easier, but to make humans multiplanetary and solve some of the biggest issues that face us today. But even he is astounded by AI’s pace of progress.

He believes that in two years, AI will be so mind-blowing it might be unrecognizable.

This progress can be seen in a variety of ways, but perhaps the most popular way people have shown AI’s progress, especially on social media, is through an incredibly arbitrary way of watching Will Smith eat spaghetti:

This is a great way to show people how AI is improving, especially from a perspective that examines how it can manufacture images and video from prompts. AI is an incredibly complex concept, however, and it goes much deeper than Will Smith eating Italian food.

Musk’s most widely adopted method of AI is likely Tesla Full Self-Driving, which impacts millions of people as they utilize it to increase safety with their travel. Musk has routinely pushed incredibly aggressive timelines for self-driving, especially unsupervised.

Perhaps this perspective is why he feels that things will be solved in a timeframe that is much more aggressive than most of us would think. Regardless, the progress of AI is moving fast, and it seems that Musk’s expectations for it could be high.

But if it can actually achieve full-length motion pictures and even more realistic production value, it will be hard to distinguish between reality and AI very soon.

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Tesla just built it 10 millionth car

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Credit: Tesla

Tesla just officially confirmed it has built its 10 millionth car, a major milestone for the company that started producing sustainable electric powertrains less than two decades ago.

In that time, Tesla has truly revolutionized the automotive industry, disrupting the idea of what a car should be, how it should be fueled, and how it truly impacts day-to-day life.

Tesla achieved this feat across four production facilities: the Fremont Factory in Fremont, California, Gigafactory Shanghai in China, Gigafactory Berlin in Germany, and Gigafactory Texas in Austin, Texas.

The 10 millionth vehicle was a Diamond Black Model Y.

Over the course of the past roughly 18 years, Tesla has evolved its lineup from a sporty sedan built on a Lotus body to a lineup of various body styles, performance metrics, and other characteristics that make each one unique.

This is an incredible achievement for a company that is young compared to what it goes up against. When Tesla entered the automotive market, Ford, GM, and Stellantis widely dominated the playing field. Since then, Tesla has caused such a disruption that these three massive brands had to scramble to create EV projects of their own.

Despite their best efforts, they have not been able to match the prowess or the effectiveness of Tesla. They are all reliant on Tesla’s charging infrastructure, their software is inferior, and their self-driving projects are elementary in comparison.

Tesla felt its fair share of growing pains over the years as well. As recent at 2019, there were complaints about build quality, paint quality, and overall luxuriousness. These things have all been improved upon through the company’s maturity, and these strides in quality have led to this 10 million vehicle production achievement, something that other small-and-scrappy EV makers will hope to accomplish one day.

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