Tesla to limit Standard Connectivity to eight years
Tesla
Tesla has stopped offering free unlimited Standard Connectivity for new vehicle orders.
According to Teslarati, vehicle orders placed after July 20, 2022 will include free Standard Connectivity for a period of eight years.
The EV automaker will notify owners when their free Standard Connectivity is about to expire. Tesla’s Connectivity section on their Support page reads:
“All new Tesla vehicles ordered on or before July 20, 2022, will have Standard Connectivity features at no cost for the lifetime of the vehicle (excluding retrofits or upgrades required for any features or services externally supplied to the vehicle - e.g. telecommunications network). As additional features and services become available in the future, you will have the opportunity to upgrade your connectivity plan.”
At $9.99 per month or $99 for a year, Premium Connectivity is worth the upgrade right now.
The contrast between Standard and Premium Connectivity is quite drastic; there aren’t many reasons to argue for staying on Standard. I think the live traffic visualization and music streaming are worth $9.99 alone.
The features included in Premium Connectivity further enhance the vehicle’s features and are important for the full experience of owning a Tesla. Premium Connectivity also includes live traffic visualization, satellite-view maps, video streaming, Caraoke, live Sentry Mode view, and a few others.
“An important part of all Tesla vehicles, further enhancing the driving experience providing access to features that require data usage - including streaming music and media, live traffic visualization, and more,” reads the Tesla Connectivity page on their Support section.
Tesla has yet to say what the price of Standard Connectivity will be since the first cars to expire are still eight years away, but we can speculate it may end up being somewhere around $5/month.
Currently if you do not subscribe to Premium Connectivity, you can still use some of the premium features such as music streaming or watch Netflix if you're connected via a Hotspot or WiFi connection. However, Tesla has added a new footnote to their site that suggests this may not always be the case.
The new footnote reads that items such as music and video streaming, internet browsing, Caraoke and others are "Currently available over Wi-Fi for Standard Connectivity."
It appears that Tesla either has plans to make these features exclusive to Premium Connectivity subscribers or that they're at least leaving the door open to change their minds in the future.
Although Tesla doesn't explicitly call it out on their website, it's expected that you will not need Standard Connectivity to use the Tesla app and that functionality will remain intact with or without Standard Connectivity.
Tesla compares their Standard and Premium Connectivity options
Tesla
The features that will no longer work without Standard Connectivity will include maps, navigation and voice commands. There may be others as well if Tesla adds any new features that require connectivity in the coming years.
Tesla will still include WiFi and cellular connections in the vehicle so that the app and software updates continue to function properly, so this comes across as a small money grab by Tesla.
The actual bandwidth costs for Tesla are very small since Standard Connectivity doesn't feature any bandwidth extensive features. To take away a feature like navigation seems odd, especially since it takes up two-thirds of the screen in a Model 3 or Model Y and the owner has no way to replace the maps with anything else.
It may have been preferred for Tesla to raise the price of their vehicles by a few hundred dollars (assuming Standard Connectivity would cost $5/month or $60/year) rather than reduce the functionality of the vehicle.
Feature
Included
Standard
WiFi / Hotspot
Premium
Phone Notifications
Ability to Use Tesla App
Voice Commands
Maps
Navigation
Video Streaming
Caraoke
Music Streaming
Internet Browser
Live Traffic Visualization
Satellite-View Maps
Sentry Mode Live
If we look at this in a slightly different way, it looks like Tesla is essentially going to charge a monthly subscription for the use of its navigation system, which isn't a great look for the leader in car software.
This is one feature I hope Tesla backtracks on.
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Following the recent departure of longtime deputy Omead Afshar, Elon Musk has stepped up to personally oversee Tesla’s sales operations in North America and Europe, according to a new report from Bloomberg, which cites people familiar with the matter.
This is a big shake-up that places Elon directly in charge of fixing Tesla’s sales slump in two key markets. The move has come as Tesla reported nearly on-the-ball deliveries for Q2 2025, hitting 384k deliveries, against a consensus street estimate of 385k deliveries.
New Leadership Structure
According to the report, Afshar’s former responsibilities are being divided between Elon and Senior VP Tom Zhu. Elon will now directly oversee the sales organizations in the US and Europe. As part of this change, Troy Jones, Tesla’s VP of North America Sales, will now report to Elon.
Tom Zhu, who is based in China, will continue to manage sales in Asia while also taking on the critical new responsibility of overseeing global manufacturing operations. Leadership of Tesla’s factories in Fremont, California, and Texas will now report to Tom. Tesla Energy’s factories will still report to Michael Snyder, VP of Energy and Charging.
For now, we’re unsure whether this is a temporary management structure, if the reporting lines will shift, or if Tesla will either hire or promote a new Senior VP of Sales to cover the duties.
Tackling the Sales Slump
The restructuring is a response to the recent downturn in sales. Analysts estimated that Tesla would deliver approximately 385k vehicles, which they essentially managed to achieve. However, deliveries fell short of production numbers, with Tesla delivering just 373k of the 410k vehicles produced.
This situation is particularly challenging in Central Europe. Europe has been noted as Tesla’s weakest market, according to Elon. Interestingly, Elon previously stated in several interviews over the last few months that there was no demand issue, but it now seems that there have been some issues with growing sales.
With Tesla’s new vehicle registrations across Europe having plunged 37% since the start of this year, and the rollout of the new affordable model, as well as more affordable versions of the Model 3 and Model Y seemingly delayed, there is a lot to do. Some analysts are projecting a second consecutive annual decline in Tesla’s global car sales for 2025.
The Rise of Tom Zhu
A key note in this reshuffle is the return of Tom Zhu to a top global operations role. Tom had previously led the construction and ramp-up of Giga Shanghai and was then promoted to Senior VP of Automotive Operations in 2023. Last year, he was sent back to China to focus on tackling regulatory hurdles with the launch of FSD in China.
His return to overseeing global manufacturing, even while staying in China, is a significant vote of confidence in his abilities. It also comes as Chinese authorities have begun drafting new autonomy guidelines to clear a path for the broader rollout of both Supervised and potentially Unsupervised FSD.
Wrap Up
This major restructuring shows that Elon is once again focused on Tesla and plans to personally tackle the company’s biggest issues. This will require a careful hand, as Elon’s forays into politics have caused self-admitted brand damage. If anyone can turn this around and have the Model Y return as the Best-Selling Vehicle of 2026, having just missed out by a few thousand vehicles to the Toyota RAV4, it is Elon.
Alongside him, Tom Zhu will be responsible for streamlining global manufacturing and ensuring that Tesla is ready to launch their new affordable variants in the near future, which should also make a considerable dent in sales.
Tesla has released its Q2 2025 production and delivery numbers, revealing an improvement in production and deliveries over Q1, but still down from a year ago.
Tesla produced 410,244 vehicles in Q2, nearly equal to their production a year ago, which was 410,831 vehicles. Production for this quarter was significantly up compared to Q1 2025, which only saw 362,615 vehicles produced. While production numbers matched those of a year ago, actual deliveries were down.
Q2 2025 saw Tesla deliver 384,122 vehicles, which was down approximately 59,000 units compared to the same period last year, but up by approximately 48,000 vehicles, or about 14% compared to Q1.
Breakdown by Model
The Model 3/Y segment continues to dominate Tesla’s production profile, accounting for 396,835 units produced and 373,728 delivered in Q2 2025. Deliveries for the “Other Models” category—which includes the Cybertruck, Model S, and Model X—were down compared to the previous quarter, with just 10,394 vehicles delivered, a 20% decline. Compared to a year ago, the drop for these vehicles is even more drastic, with sales being down 52%. Tesla refreshed its Model S and Model X last month with new features; however, the update was much smaller than expected and likely didn’t help much in increasing sales for these vehicles.
Tesla doesn’t break down Cybertruck sales separately, but those deliveries are expected to be down as well.
Tesla noted that 2% of total deliveries this quarter were accounted for under operating lease agreements, consistent with the same quarter last year.
Quarter
Production
Deliveries
Model 3/Y Deliveries
Other Models Deliveries
Lease Share
Q2 2025
410,244
384,122
373,728
10,394
2%
Q1 2025
362,615
336,681
323,800
12,881
4%
Q2 2024
410,831
443,956
422,405
21,551
2%
Context and Market Response
While the numbers exceeded some bearish expectations, the year-over-year delivery drop is Tesla’s second straight quarterly decline. Analysts attribute declining sales to increasing EV competition and reputation issues.
Still, investors found relief in the improved quarter when compared to Q1. The stock rebounded about 4% yesterday on the news.