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Tesla will charge customers a monthly fee for its premium tier of in-car connectivity - Business Insider

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Tesla's move to charge drivers for in-vehicle connectivity is likely due to the mounting costs of connecting its growing fleet:

it will charge customers $10 per month for its premium tier of in-car connectivity beginning in January 2020.The monthly fee only applies to vehicles ordered after June 2018 and allows Tesla's cars to access features like media streaming, satellite maps, and an internet browser.

Owners who choose not to pay for premium connectivity will still have access to a free, standard tier that provides connectivity for navigation and system updates. Previously, Tesla provided free connectivity for its vehicles, only the standard and premium connectivity tiers in July 2018, but hasn't charged for the premium tier until now.

Tesla's move to charge drivers for in-vehicle connectivity is likely due to the mounting cost of connecting a growing fleet. As of September 18, 2019, there were around 536,000 Tesla vehicle identification numbers registered in the US alone, up 383% from around 116,000 the year prior, Bloomberg — and the volume of data generated by the cars likely increases along with the size of the fleet.

While it is unclear what it costs Tesla to provide connectivity for its vehicles, the company has struck multiyear deals with telecoms, including

 

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