Elon Musk, CEO of Tesla, recently announced that the Standard Range Model Y, which has been sold over the past few months with a range of 260 miles, actually possesses a higher capacity. Tesla plans to offer an optional update that could unlock an additional 40-60 miles of range for a fee of $1,500 to $2,000, pending regulatory approval. This development follows Tesla’s discontinuation of the Standard Range Model Y in favor of a new version with a 320-mile range, priced $2,000 higher and starting at $44,990 ($37,490 with federal EV tax credit).
The practice of software-locking vehicle capabilities isn’t new for Tesla, which previously offered a paid upgrade to unlock extra battery capacity in the Model S. This strategy is becoming more common across the auto industry, with manufacturers like Polestar, Mercedes-Benz, and BMW also utilizing software to control access to various car features, often requiring ongoing payments or one-time fees to enhance vehicle performance or enable certain functionalities. This trend highlights a shift towards using software to add value or restrict features in vehicles, which can be unlocked post-purchase for additional fees.
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