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.”
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
News
Tesla Robotaxi just got a big benefit from the U.S. government
The NHTSA is looking to help streamline the application process for companies developing driverless vehicles.
Tesla Robotaxi just got a big benefit from the U.S. Government, as the National Highway Traffic Safety Administration (NHTSA) is looking to ease some rules and streamline the application process that could hinder the development and licensing of autonomous vehicles.
Tesla is set to launch its Robotaxi platform in the coming days or weeks, but regulation on autonomous vehicles is incredibly slim, so automakers are left in a strange limbo as permissions to operate are usually up to local jurisdictions.
The NHTSA still has the ultimate say, but it is now adopting a new strategy that will see companies gain an exemption from federal safety standards and streamline the entire application process.
The agency is authorized to grant exemptions to permit manufacturers to produce vehicles over a two or three-year period that might not comply with certain Federal Motor Vehicle Safety Standards (FMVSS). Robotaxi, for example, will eventually not have a steering wheel or pedals, through the Cybercab that Tesla unveiled last October.
The exemption program the NHTSA announced today would be possible through Part 555 of the National Traffic and Motor Vehicle Safety Act:
“NHTSA may grant a Part 555 exemption if at least one of four bases listed in the statute is met and NHTSA determines that the exemption is consistent with the public interest and the Safety Act. The statute also authorizes NHTSA to subject an exemption to terms the agency deems appropriate and requires that NHTSA publish notice of the application and provide an opportunity to comment.”
The rapid and non-stop innovation that is being performed is tough to keep up with from a legal standpoint. The NHTSA recognizes this and says current legislation is appropriate for traditional vehicles, but not for the self-driving cars companies are producing now:
“The current Part 555 process was designed for traditional vehicles. As currently applied, this process is not well suited for processing exemptions involving ADS-equipped vehicles in a timely manner or overseeing the unique complexities involving their operations. This has resulted in long processing times for applications for ADS-equipped vehicles. NHTSA must improve its Part 555 processing times substantially to keep pace with the rapid innovation of the ADS industry and to ensure that exemptions remain effective tools for nurturing groundbreaking safety technologies.”
Now, the NHTSA will be “enhancing application instructions” to help manufacturers understand the requirements involved in the application process. This will streamline the entire process by “reducing the need for NHTSA to request additional information from the manufacturer,” the agency says.
First Tesla driverless robotaxi spotted in the wild in Austin, TX
Next, the NHTSA is going to have a more flexible approach to evaluating exemptions for ADS-equipped vehicles:
“To build flexibility into the Part 555 process while also accounting for the unique aspects of those exemptions, NHTSA intends to develop terms that could be included in Part 555 exemption grants, when appropriate, to condition operations of exempted ADS-equipped vehicles on enhanced and continuing oversight from NHTSA. NHTSA would expect to administer this enhanced oversight through letters, which could be updated over time, mirroring real-world ADS development. This will enable NHTSA to focus its initial review during the application stage and align the Part 555 oversight approach more closely to exemptions administered under NHTSA’s Automated Vehicle Exemption Program (AVEP), which have proven effective for ADS.”
This will benefit any company making autonomous vehicles, but it will especially benefit Tesla in the short-term as it is readying for the launch of Robotaxi.
Tesla is trading up 1.89 percent at the time of publication.
Part 555 Letter June 2025 by Joey Klender on Scribd
News
SpaceX produces its 10 millionth Starlink kit
The first 5 million Starlink kits took nearly four years to build.
SpaceX has achieved a major milestone, producing its 10 millionth Starlink kit. The accomplishment was celebrated across the company’s Hawthorne, California, and Bastrop, Texas, facilities.
The milestone was shared in social media by Sujay Soman, Senior Facilities Engineer, in a LinkedIn post, which has since been deleted.
Starlink Production Ramp
Soman noted in his LinkedIn post that the first 5 million Starlink kits took nearly four years to build, but the next 5 million kits were completed in just 11 months. This underscores SpaceX’s intense efforts to ramp up the satellite internet system’s production, and it reflects the private space company’s manufacturing prowess.
The SpaceX Senior Facilities Engineer shared a couple of photos of the Machine Maintenance and Facilities team in Bastrop to commemorate the event.
“Today, Starlink Product teams across our Hawthorne and Bastrop sites produced the 10th Million Starlink Kit! It took almost 4 years to build our first 5 million kits, and we doubled that in about 11 months. Monumental accomplishment!” Soman wrote in his post.
World-Changing Technology
The Starlink kits, featuring dish hardware and supporting equipment, enable users to connect to the company’s growing constellation of low Earth orbit satellites. With over 6,000 satellites launched to date, Starlink now provides fast and reliable internet connectivity to over 6 million customers worldwide. This was a significant increase from the 5 million customers that the company reported in February 2025.
SpaceX has not detailed its next production targets, but the production of Starlink’s 10 millionth kit milestone signals the company’s readiness to scale further. Being an Elon Musk-led company, SpaceX is arguably the best in the business when it comes to efficient and cost-effective manufacturing. It would then be unsurprising if SpaceX announces another Starlink production milestone soon.
News
Tesla retires yoke steering wheel in base Model S and X
Tesla’s controversial steering yoke is now exclusive to the Model S and Model X Plaid.
Tesla has closed a chapter in the saga of the Model S and Model X’s controversial steering yoke. Following the announcement of the new iterations of the flagship vehicles, Tesla promptly removed the steering option for the vehicles’ base variants.
This means that if drivers wish to experience the Model S or Model X with a yoke, they would have to go Plaid.
The new Model S and Model X
The refresh of the Model S and Model X were quite minor, with the two vehicles featuring a new front camera, a new color, and a handful of other small changes like new exterior styling for the Model S Plaid. Tesla also noted on its website that the two vehicles now have a much smoother and quieter ride.
The changes were quite polarizing, with some appreciating the subtle improvements made to the two flagship cars and others arguing that Tesla should have done more. Others, however, noted that the level of improvements implemented on the Model S and Model X would already be considered major refresh for a tech company like Apple.
No More Yoke Unless Plaid
When Tesla refreshed the Model S and Model X in 2021, the vehicles were released with a steering yoke as standard. The yoke was controversial, with critics stating that it was unsafe and fans stating that it made driving the Model S and Model X fun. Tesla later introduced a round steering wheel option for the Model S and Model X, which later became standard on the two flagship vehicles.
This remains true today, with the most recent versions of the Model S and Model X still being released with a round steering wheel as standard. Those who wish to experience the Model S and Model X Plaid as envisioned by the company and its CEO, Elon Musk, however, might find it a good idea to spend the extra $1,000 for the vehicles’ yoke steering wheel.
-
News2 weeks agoTesla to lose 64 Superchargers on New Jersey Turnpike in controversial decision
-
News4 days agoI took a Tesla Cybertruck weekend Demo Drive – Here’s what I learned
-
Elon Musk1 week agoElon Musk explains Tesla’s domestic battery strategy
-
News2 weeks agoTesla’s apparent affordable model zips around Fremont test track
-
Elon Musk2 weeks agoTesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter
-
Elon Musk5 days agoTesla tops Cathie Wood’s stock picks, predicts $2,600 surge
-
Elon Musk2 weeks agoElon Musk responds to Tesla Supercharger shutdown on NJ Turnpike
-
Investor's Corner2 weeks agoTesla bull writes cautious note on Robotaxi launch: ‘Keep expectations well contained’