Tesla’s former CTO JB Straubel is ramping up his stealthy recycling business


When former CTO JB Straubel announced that he would be taking more of an advisory role in Tesla and that he would be stepping down from his day-to-day responsibilities as the electric car maker’s Chief Technology Officer, he provided a firm assurance that he was not “disappearing” from the company. The ongoing growth of a stealthy recycling startup registered under Straubel’s name suggests that his words back in the Q2 2019 earnings call were no fluke. 

JB Straubel is known for being the backbone of Tesla’s battery tech. One of the most notable photos in Tesla history quite literally depicts Straubel assembling a battery module by hand. It would not be a stretch to state that innovations in Tesla Energy and at Gigafactory 1 in Nevada have been possible primarily due to Straubel’s work and genius. Yet, despite Tesla’s batteries being pretty much the best in the market, Straubel has noted that there is something still missing from the puzzle: closed loop battery recycling. 

During the 2018 Annual Shareholders Meeting, Straubel addressed an inquiry from an investor about Tesla’s approach to battery waste. The former CTO’s response was brief, stating that Tesla’s priorities lie in recycling its batteries, thereby preventing the company’s old cells from ending up in landfills. Eventually, Straubel stated, Tesla wants to develop a closed loop, using the same materials from batteries that it recycles to create new packs. 

(Credit: CNBC)
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“Tesla will absolutely recycle, and we do recycle, all of our spent cells, modules and battery packs. So the discussion about is this waste ending up in landfills is not correct. We would not do that, these are valuable materials. In addition, it’s just the right thing to do. We have current partner companies– on every major continent where we have cars operating– that we work with to do this today. And in addition, we’re developing internally more processes, and we’re doing R&D on how we can improve this recycling process to get more of the active materials back. Ultimately what we want is a closed loop, right, at the Gigafactories that reuses the same, recycled materials,” he said. 

As noted by Tesla investor-enthusiast Galileo Russell of YouTube’s HyperChange channel, JB Straubel just so happens to have a startup that appears to address the very same point that he emphasized during the 2018 Shareholder Meeting. Registered to do business in Nevada, Straubel’s startup, called Redwood Materials, is focused on next-generation recycling technologies. A look at Redwood’s bare-bones official website shows a statement that goes very well with Tesla’s mission. 

“Advancing sustainability through research and development, engineering, and operational excellence for next generation recycling processes and programs.”

Redwood Materials lists Straubel and fellow Tesla alumni Andrew Stevenson, who served under the former CTO as Head of Special Projects, as executive officers of the stealthy recycling startup. Filings for the recycling company have also shown that Redwood received $2 million worth of investments. Quite interestingly, Straubel provided a response to CNBC last year when the news outlet published a report on the startup, stating that Redwood, at least at that point, was not doing any direct business with Tesla. 

(Credit: Tesla)

“Redwood is not currently doing any business with Tesla and our expansion to Nevada is unrelated to Tesla or to the Gigafactory directly. Northern Nevada has a welcoming business environment, a growing technology presence and gives us a strong foundation for aggressive future growth,” he said. 

It’s been over a year since Straubel gave his response to CNBC, and a lot has happened since then. Tesla’s batteries have improved, and if the Cybertruck’s starting price is any indication, the electric car maker appears to have lowered its battery production costs even further. Straubel has also transitioned to an advisory role in Tesla, presumably to focus on other projects. One of these projects could very well be the work being done by Redwood, which just happens to be completely compatible with Tesla’s electric cars and energy storage systems. 

The signs definitely are there, and if the HyperChange host’s speculations prove right, it would mean that Tesla could be the auto industry’s first company that can achieve true closed loop battery recycling, a thing that was once considered as the holy grail for electric car production.

Watch HyperChange‘s video about JB Straubel’s stealthy startup in the video below. 

Tesla’s former CTO JB Straubel is ramping up his stealthy recycling business

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Tesla’s China factory fills up with Model 3 days after securing sales permit


Tesla’s Made-in-China Model 3 units are filling up the parking lot of the Gigafactory 3 in Shanghai, a sign that the electric car maker has ramped up its production after receiving a permit from the government to sell and deliver its locally-made electric cars to customers across the country.

Tesla owner and Twitter user @JayinShanghai shared a photo on Monday showing roughly 500 Model 3 units occupying practically all parking spaces at Gigafactory 3, a big difference from an image posted a few days ago showing roughly a hundred or so units on the ground.

It appears Tesla has stepped on the pedal to ramp up the production of the Model 3 units to meet the demand of the largest market for mid-sized premium sedans. In its Q3 2019 update, the American electric car maker shared the notion that China could become the Model 3’s biggest market.

Tesla Model 3 Units at Gigafactory 3 Shanghai (Source: @JayinShanghai|Twitter)
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Earlier this week, there were sightings of transport trucks carrying Tesla Made-In-China Model 3 out of the Shanghai facility and most likely on their way to customer showrooms and delivery centers. 

On Dec. 6, Tesla China announced that the carmaker’s Model 3 was included in the list of new electric vehicles receiving incentives released by China’s Ministry of Industry and Information Technology, hinting that the electric car manufacturer was given the green light to deliver the Model 3 to customers.

The Tesla Made-in-China Model 3 will be sold for around $50,000 while announced subsidies for two variants of the vehicle may potentially save buyers around $3,500.

Delivery dates might have been moved up from the earlier estimate of late January 2020 as well.

The Gigafactory 3 in Shanghai broke ground in January this year and was ready for production in 10 months. The latest developments in China further proves that Elon Musk’s electric car company can compete in the global market and will soon start to get a share of the pie in the biggest EV-hungry automotive market in the world.

As consumers get their first taste of the Tesla Model 3, the brand is planning to increase the number of its fast charging stations to 362, an increase of 39%. It will also double its service centers from 29 to 63 in the coming months. Tesla executives in China have also created Weibo accounts through which customers can get directly in touch with them.

H/T to @JayinShanghai

Tesla’s China factory fills up with Model 3 days after securing sales permit

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Tesla owners can now view their ‘Premium Connectivity’ expiry dates from their cars


Tesla has begun sending Premium Connectivity expiration warnings to car owners following a wave of email notifications over the weekend about the in-car data subscription for $9.99 a month that starts this coming January 2020.

Redditor u/_danthevan shared a screenshot on the r/Teslamotors subreddit featuring a notice about his vehicle’s Premium Connectivity expiration date. Other Tesla owners confirmed that they have also received the same notification. The Redditor’s screenshot shows that his Premium Connectivity expires on April 2020 and his Model 3, hinting that expiry dates vary for every Tesla owner.

Owners of Model S, Model X and Model 3 affected by the upcoming changes can check their Premium Connectivity expiration date on their touchscreens under the “Software” menu. According to Tesla’s Connectivity page, the car manufacturer will also automatically send an email with a reminder to car owners a week before their Premium Connectivity trial expires.

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The connectivity changes will affect owners of Model S, Model X, and Model 3 who bought their vehicles on or after July 1, 2018. Those who are under the Premium Connectivity trial with an end date on or before the end of 2019 will automatically switch back to Standard Connectivity on January 1, 2020.

Standard Connectivity offers features such as navigation while those who opt to go premium will get the standard features plus satellite-view maps, video streaming, caraoke, music streaming, and Tesla’s in-car internet browser. The last four features mentioned are still accessible on Standard Connectivity over Wi-Fi.

The rollout of the Premium Connectivity subscription plan is no surprise but we’re yet to see the reaction of the Tesla community as they start to cough up roughly $10 plus taxes to get the more robust features of Tesla’s infotainment system.

Tesla initially offered free connectivity to its customers to make sure they get the best driving experience but as the fleet of electric cars on the road gets bigger and bigger, one can only assume that costs for maintaining such free service piles up.

Tesla owners who bought the Standard Range and Standard Range Plus Model 3 on or before the end of the year will get a complimentary Premium Connectivity trial for 30 days. On the other hand, Tesla owners who acquired their vehicles on or before June 30, 2018 will continue to have free lifetime Premium Connectivity.

Tesla first announced the Premium Connectivity option in July 2018 and offered a year of free trial to affected electric vehicle owners. But all the way back in 2014, CEO Elon Musk already hinted at an upcoming premium data package, reminding car owners that their vehicles’ internet connection will likely be free for only four more years. That was more than five years ago.

Here’s a great video from Tesla owner and Youtuber DÆrik that shows the location for Premium Connectivity’s expiry date.

Tesla owners can now view their ‘Premium Connectivity’ expiry dates from their cars

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Elon Musk takes Tesla Cybertruck for a night out on the town


The unmistakable Tesla Cybertruck was caught on video late Saturday evening in Los Angeles, giving us our best real-world look at what the future might hold.

Driving down an uncharacteristically empty 405 freeway in Southern California, the stainless steel “Exoskeleton” of Tesla’s first all-electric pickup truck – rather, a utility vehicle with the performance of a Porsche – peers through the darkness.  The polar opposite of inconspicuous and distinct in its angular design, the Cybertruck prototype races past Roberto Cruz who didn’t pass up the opportunity to capture it all on video. A good 30-second-plus look of the dystopian battle machine in motion dwarves another recent sighting of the massive Cybertruck zipping down a public street near SpaceX.

Through the truck’s tinted windows, only one of the many hidden Cybertruck features is in clear sight: the camera-based digital rear-view “mirror”. Not much else can be identified, although tips received by Teslarati suggest Tesla CEO Elon Musk as the driver behind the wheel. Musk and friends were spotted earlier that same evening at the famed Nobu restaurant in Malibu, California with the Cybertruck, as captured by TMZ.

Less than a month since Tesla unveiled its vision for the future of pickup trucks, the Cybertruck has already captured the interest of the motoring world to the tune of over 250,000 pre-orders.

Tesla Cybertruck production is expected to begin in 2021, with a focus on the triple motor and dual motor variants being the first to be manufactured. There’s been no discussion on which factory Tesla will be initially manufacturing the vehicle from, yet state leaders including Alaska’s Governor have already begun courting the California-based electric carmaker with the idea of providing resources for local production of the polarizing utility truck.

Check out Roberto Cruz’s great capture of the Tesla Cybertruck in the wild below.

Elon Musk takes Tesla Cybertruck for a night out on the town

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Tesla Cybertruck spotted near LAX airport with tow hitch exposed


Tesla Cybertruck prototype was caught in the wild near LAX airport in Los Angeles, also marking the first time the all-electric pickup truck was spotted with its tow hitch exposed. Tesla enthusiast Cody Simms saw the Cybertruck during his commute near Lincoln boulevard and shared his snapshot on Twitter.

The Cybertruck’s tow hitch was not in use in the most recent sighting but one can imagine the numerous applications for it given its towing capacity.  Tesla Cybertruck specs called for towing capacity of 14,000 lbs for its Tri-Motor AWD variant, while the Single Motor RWD and Dual Motor AWD versions will have a towing capacity of 7,500 pounds and 10,000 lbs, respectively. Tesla fans are yet to hear about optional accessories that will go with the Cybertruck upon delivery but the numbers say it all about what this electric pickup truck can pull.

 

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The Cybertruck is expected to be a towing monster when compared to the current leaders of the pack, outgunning the 2019 Ford F-150, a truck known as one of the best in terms of towing and hauling with a capacity of ~13,200 lbs for its upper-end variants. The latest iteration of the Ram 1500, meanwhile, has a towing capacity of 12,750 lbs.

The massive Tesla Cybertruck was also recently seen cruising on a public road in Hawthorne, California followed by a blue Model X.

Tesla’s all-electric truck has gone head to head against a Ford F-150 in a video demonstration but the Cybertruck proved too much for the 2WD XLT variant of the F-150. Ford eventually invited Tesla to do a rematch for a proper “apples to apples” test but the American carmaker backtracked when Elon Musk proved enthusiastic, explaining that its tug-of-war rematch challenge was just “tongue in cheek.”

The Tesla Cybertruck is priced competitively against the other six-seat pickups in the market, such as the Ford F-150 SuperCrew variants. A new analysis, meanwhile, shows the advantage of the Cybertruck in terms of cost of ownership. The total cost of ownership of a Ford F-150 owner in California will be around $72,459 over five years while Tesla’s will peg the cost at $53,379.

The entry-level Cybertruck will cost $39,900 while the Dual Motor version will go for $49,990, and the top-tier electric pickup will sell for $69,900. Tesla will begin production of the Cybetruck in late-2021.

Tesla Cybertruck spotted near LAX airport with tow hitch exposed

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Tesla’s Elon Musk reveals release date for ATV, hints at electric dirt bike


Tesla CEO Elon Musk has confirmed that  the all-terrain vehicle (ATV) the company unveiled in the Cybertruck event will be released around the same time as the all-electric pickup. The Cybertruck’s Dual-Motor and Tri-Motor variants will begin production in late 2021, with the Single Motor RWD trim starting in late 2022.

Musk made the announcement following a question from the Tesla Owners Silicon Valley’s Twitter account, which asked if there were any updates on the ATV. Details about the ATV were slim following the unveiling, as Musk announced the four-wheeler at the tail end of the Cybertruck unveiling event. Musk did mention that the ATV will be a two-seater, and it will complement the Cybertruck as it charges directly in the pickup’s “Vault.” An electric dirt bike was also mentioned.

“We’ll aim to have it come out same time as truck. Two-seater electric ATV designed to work with Cybertruck will be fun! Electric dirt bikes would be cool too. We won’t do road bikes, as too dangerous. I was hit by a truck & almost died on one when I was 17,” Musk said on Twitter.

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Musk also addressed the idea that the company could produce a street-legal motorcycle in the future. While some Tesla enthusiasts have been asking for the Silicon Valley-based electric car maker to produce a motorcycle that could be used on the street, Musk shot down the idea with a story from his teenage years where he was hit by a truck while riding one. Musk has told this story in the past, specifically at the 2018 Tesla Shareholder’s Meeting, when he stated that an accident with a motorbike nearly ended his life. “We’re not going to do motorcycles,” Musk stated.

Those interested in the ATV are still waiting for Tesla and Musk to release the finer details of the vehicle, like weight, range, and whether it will be available in different variants like the company’s cars. Those who have pre-ordered the Cybertruck will have the ATV available as an option, according to a previous tweet from the Tesla CEO.

Tesla’s unveiling of the Cybertruck, along with its development of an ATV and now a possible dirt bike, is evidence the company is starting to embracing the outdoor market. The Cybertruck, while not aimed directly toward off-roading, camping, and outdoor activities like the Rivian R1T pickup and R1S sport utility vehicle, offer enough towing capacity to haul a fully-loaded camper or RV. Musk’s interest in four-wheelers and dirt bikes could help Tesla reach out to a completely new customer base as well, just as the Cybertruck attracts a potential new market.

The Tesla Cybertruck’s full capabilities were not really discussed much during its unveiling event, as Musk appeared to have expedited the vehicle’s presentation following its failed Armor Glass demonstration. Yet, despite this, there is very little doubt that the Cybertruck will be a tough-as-nails pickup, as evidenced by its stainless steel exoskeleton and its potential off-roading capability that is teased by its 16″ ride height. Auto veteran Jack Rickard mentioned this in a segment in his YouTube channel.

“This thing’s a Hummer. A Ford F-150, the tricked out 4×4 Supercrew cab, has 9.6” of ground clearance. This has 16” – that’s like a Hummer. I think the Hummer H1 was 16. So it makes a big difference in off-roading And underneath that, I’m told it’s all armored, it’s all covered, you can’t get at the motors, you can’t get at the batteries, it’s a skidplate. So specifically, on the things that define a pickup truck, and I’m surprised Elon Musk even knew what those were, but he’s got it, and that’s this offroad capability, and this kind of tough, durable, manly kind of gig,” Rickard said.

Tesla’s Elon Musk reveals release date for ATV, hints at electric dirt bike

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Tesla Made-in-China Model 3 first deliveries imminent as carriers spotted leaving Gigafactory 3


Transport trucks carrying Tesla’s Made-in-China Model 3 were spotted leaving the company’s Gigafactory 3 production facility in Shanghai, presumably on their way to customer delivery centers.

The sighting comes on the heels of Tesla’s inclusion in the list of electric vehicles that qualify for government incentives and the official green light for the company the sell and deliver its cars within the country.

Tesla owner JayinShanghai visited the China factory and posted several images of car trailers hauling Made-in-China Model 3 units out of the factory.

Tesla’s initial estimation for the first deliveries of the China-made Model 3 was late January 2020. But having received the permit to sell its locally-produced Model 3 sooner than expected, Tesla can begin its Model 3 push into the biggest automotive market in the world that’s aiming to have 25% of its car sales comprised of electrified vehicles by 2025.

Tesla’s entry into the Chinese electric vehicle market is seen as positive development even among local competition such as Xpeng Motors. President Brian Gu sees the brand serving as a catalyst in the domestic electric vehicle market and would pave the way for a better supply chain and experience for customers.

“I always believe that having a good product that really gets the consumer interested and expands the overall market is good for the industry,” Gu said.

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Tesla has 24 stores in China as listed on its website and plans to expand its after-sales network by doubling the number of its maintenance shops to 63 from 29, add 100 more fast-charging stations and turn some showrooms in the country into one-stop-shop Tesla Centers.

Two Tesla Model 3 variants were included in the list of new electric vehicle incentives released by China’s Ministry of Industry and Information Technology, giving consumers at least $3,550 of savings when they purchase the locally-produced Model 3.

Days prior to receiving the official green light to sell Made-in-China Model 3 vehicles, sightings of  Model 3 inventory painted a clear picture that the electric carmaker was preparing for first customer deliveries.

Tesla China also announced that its executives have opened Weibo accounts – a popular social media platform in China –  to ensure customers can communicate with the management team directly.

Tesla Made-in-China Model 3 first deliveries imminent as carriers spotted leaving Gigafactory 3

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SpaceX nails first Falcon 9 booster launch debut in months [photos]


On December 5th, SpaceX pulled off a flawless Falcon 9 booster debut in support of the Cargo Dragon spacecraft’s CRS-19 space station resupply mission, marking the first launch of a new booster in months.

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More specifically, the last time SpaceX launched a new Falcon 9 booster was on June 25th, 2019 during STP-2, Falcon Heavy Block 5’s second mission in two months. The mission featured two flight-proven side boosters – both reused from the Block 5 rocket’s April 11th launch debut – but also relied on a new center core (B1057). B1057 unfortunately failed moments before a planned touchdown on drone ship Of Course I Still Love You (OCISLY) but still technically qualifies as the last new booster launched by SpaceX prior to CRS-19.

A few days shy of six months later, CRS-19’s brand new Falcon 9 booster (and an expendable upper stage) rolled out to SpaceX’s LC-40 launch pad, confirming suspicions that the mission would use a new booster instead of twice-flown B1056.

CRS-19 Cargo Dragon capsule C106 sits atop Falcon 9 booster B1059 ahead of the rocket’s December 5th launch debut. (Teslarati – Richard Angle)

After the booster successfully launched CRS-17 and CRS-18 in May and July 2019, both SpaceX and NASA indicated that B1056 was the most likely candidate to launch CRS-19. Plans clearly changed, although SpaceX indicated in a prelaunch conference that the booster manifest swap was purely a scheduling move and didn’t indicate any technical issues or dissatisfaction from NASA.

In the history of SpaceX booster reuse, NASA has thus far only been comfortable flying on flight-proven boosters that had previously flown NASA missions only, meaning that it will likely be at least 12-18 months before the space agency has another twice-flown Falcon 9 booster ready for a NASA mission. Regardless, the space agency has been undeniably willing to support the technology far sooner than most would have expected, given its history of extreme conservatism over the two or so decades.

Regardless, after a brief wind-related 24-hour delay, Falcon 9 B1059 lifted off for the first time on December 5th, performing perfectly and ultimately landing on drone ship Of Course I Still Love You (OCISLY) to leave the upper stage with enough fuel to perform experiments after deploying Cargo Dragon. The mission’s drone ship landing – unusual for Cargo Dragon launches – raised suspicions in the spaceflight community and SpaceX ultimately confirmed the above information, indicating that CRS-19’s upper stage would perform orbital coast tests (likely for the USAF).

As it turns out Falcon 9 B1059’s flawless landing aboard OCISLY also made it the 20th booster SpaceX has successfully recovered. All told, SpaceX has flown a total of 46 separate missions with flight-proven Falcon 9 and Falcon Heavy boosters, all of which have occurred since the technology’s March 2017 debut.

After reaching orbit for the third time ever, Cargo Dragon capsule C106 and a fresh trunk began the journey to the International Space Station (ISS) with around 2600 kg (5800 lb) of science experiments, consumables, and other cargo aboard. The spacecraft successful rendezvoused with the ISS on December 8th and was captured and berthed by the station’s massive robotic arm (Canadarm2) shortly thereafter. All told, SpaceX has now delivered roughly 41 metric tons (90,000 lb) of cargo for NASA over its 19 successful missions to the ISS.

Meanwhile, with its first launch and landing – and a relatively gentle one, at that – under its belt, Falcon 9 B1059 should theoretically be a prime candidate for rapid turnaround, although there’s a good chance that SpaceX will hold the booster to support CRS-20, Cargo Dragon 1’s last planned launch. That mission is expected no earlier than March 2020.

Check out Teslarati’s newsletters for prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket launch and recovery processes.

SpaceX nails first Falcon 9 booster launch debut in months [photos]

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Tesla refreshes Model S front seats with sleeker, roomier design like Model X


Tesla has updated the Model S front seats with a sleeker and thinner design that facilitates better use of interior cabin space and better comfort.

An image of the refreshed Model S front seats can be seen in Tesla’s updated online configurator. They appear flatter than the previous iteration, with the headrest looking more integrated with the backrest, and seat bolsters that appear to be wider. These enhancements bring it closer to the front seat design of the Model X, if not the same.

But beyond the adjustments to comfort and aesthetics, there are other good reasons for the update.

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The Model S Gen 1 seats used between 2012 and Q4 of 2014 featured variations of standard leather, textile and performance seats. With reports from owners citing poor lateral support and seats being too firm, Tesla rolled out a second-generation seat in late 2014 through 2015, which had larger bolsters and headrests. The Gen 3 or Next Gen Seats was introduced in 2015 that featured a more sport-like design, with flatter headrests and more pronounced bolsters. These would later be superseded by Tesla’s very own Gen 4 seats, known as Tesla Premium seats that were produced in-house from its new seat factory at the time.

 

To reduce risks due to supplier constraints that ultimately lead to production bottlenecks, Tesla resorted to bringing production in-house as much as possible, beginning with Model 3. Tesla in its 2018 Q4 update, reported that its manufacturing teams were able to hurdle the bottlenecks and were able to stabilize Model 3 production at high volumes, making headway to become one of the best-selling passenger cars in the United States.

In addition to finding efficiencies in Tesla’s manufacturing process, being able to share components between the company’s line of products also significantly reduces the number of variants customers can order, thereby also streamlining the production line itself.

In the future, Tesla might also introduce new seating material as hinted by a new patent for a fibrous foam architecture that may further streamline the production process by doing away with more laborious and antiquated manufacturing processes.

Tesla Model S is set to undergo a significant powertrain update in late 2020 when the track-ready Plaid variant goes into production. It will have three electric motors and improved cooling architecture that will not be prone to power throttling issues as more commonly found with the P100D trim. Musk noted on Twitter that the Plaid Model S will be expensive but cheaper than the Porsche Taycan Turbo S, which begins at $180,000 before options.

Tesla refreshes Model S front seats with sleeker, roomier design like Model X

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Tesla to begin $10 monthly “Premium Connectivity” subscription plan for popular in-car features


Tesla will begin charging a $9.99 monthly fee for its “Premium Connectivity” internet package, beginning on January 1, 2020. The upcoming change will affect all Model S, Model X, and Model 3 owners who purchased on or after July 1, 2018.

Tesla owners were notified via email early Saturday morning of the upcoming change that would end their complimentary access to vehicle features, including live traffic visualization, satellite-view maps, and in-car video streaming services such as Netflix and Youtube (when not connected to Wi-Fi.)

Buyers taking delivery of Model 3 Standard Range and Standard Range Plus vehicles before the end of 2019 will be given a 30-day complimentary trial of Premium Connectivity.

Tesla Premium Connectivity Order Screen (Photo: Teslarati)

Tesla’s latest notification makes good on a promise first communicated in July of 2018, when the electric carmaker announced that affected owners would be given a free 1-year trial of Premium Connectivity.

Now, roughly eighteen months after the company’s first announcement of a Premium Connectivity plan, features that many drivers have been primed on and accustomed to will only available under a monthly subscription plan.

A comparison of the standard internet package and premium connectivity package can be seen as follows.

Tesla Standard vs. Premium Connectivity

Connectivity Packages

Standard

Included

* Accessible over Wi-Fi for Standard Connectivity

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Though the latest update of a paid subscription plan may come with mixed feelings among owners, it should come as no surprise even among the earliest of early adopters.

Tesla noted as far back as 2013 in its shareholder letter that Model S buyers would get free data connectivity and internet radio for four years and may be charged “for extreme 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.”

Tesla vehicles rely on carrier networks, such as AT&T in the United States, to provide cellular internet connectivity to its vehicles. In the face of rising carrier costs as a result of high volume production and deliveries, being able to foot the bill on such as scale becomes cost-prohibitive. Especially in a company with pressures to appease investors that sustained profitability is achievable.

Tesla to begin $10 monthly “Premium Connectivity” subscription plan for popular in-car features

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