The battery-powered car is a rip-off: Tesla REMOVES free Autopilot!
Tesla is withdrawing free Autopilot from some models, fueling the debate over subscriptions, subsidies and Elon Musk's controversial pay package. Is it viable?
English · Original discussion in Spanish · Published
Tesla removes 'free' Autopilot: subscriptions as a business model
Tesla's Autopilot was never free. It was paid for in the base price of the vehicle. Now Elon Musk's company is removing it from certain models to force drivers into a subscription. The move confirms a business model that prioritizes recurring subscriptions over ownership, a trend already visible in other sectors. But it's not the only controversy: the swapable battery that never worked, the California subsidies and Musk's multibillion-dollar pay package are shaking confidence in the manufacturer.
The Autopilot that was never free
Tesla has removed basic Autopilot from some models, requiring a recurring payment to keep it. Critics point out that the system was part of the purchase price, and that it now becomes an additional expense. Defenders argue it is a transition to software as a service, but the lack of transparency is generating backlash. At its core, the debate reflects the tension between ownership and subscription in the car industry.
The swapable battery: subsidy and fiasco
In 2013, Tesla received a subsidy from California for developing a fast battery-swap system. The idea was to replace a drained battery with a charged one, like swapping a gas canister. The system was never viable at scale, but it allowed Tesla to standardize certain modules, according to some analyses. Replacing a battery in a Model S costs around $20,000, a figure that could have been higher without that subsidy. Either way, the episode illustrates how subsidies can distort the market.
Musk's pay: Ponzi scheme or real company?
Elon Musk's pay package, valued at $50 billion, has been challenged in the Delaware courts. Shareholders claim the board of directors was not independent, with members close to Musk. A Delaware judge has already ruled in favor of the plaintiffs, although the process is still ongoing. The situation recalls the Botín case in Spain, where the Supreme Court upheld multibillion-dollar severance packages under the principle that if the board approves it, anything goes. The difference is that in Delaware the approval process is examined, not just the outcome.
Conclusion
The removal of free Autopilot is not an isolated incident, but a symptom of a business model that depends on subscriptions and subsidies. Tesla remains an overvalued company on the stock market, with shrinking margins and growing competition. The question nobody answers is how long this house of cards can hold up.
Related discussions in the forum
Tesla's Autopilot was never free. It was paid for in the base price of the vehicle. Now Elon Musk's company is removing it from certain models to force drivers into a subscription. The move confirms a business model that prioritizes recurring subscriptions over ownership, a trend already visible in other sectors. But it's not the only controversy: the swapable battery that never worked, the California subsidies and Musk's multibillion-dollar pay package are shaking confidence in the manufacturer.
The Autopilot that was never free
Tesla has removed basic Autopilot from some models, requiring a recurring payment to keep it. Critics point out that the system was part of the purchase price, and that it now becomes an additional expense. Defenders argue it is a transition to software as a service, but the lack of transparency is generating backlash. At its core, the debate reflects the tension between ownership and subscription in the car industry.
The swapable battery: subsidy and fiasco
In 2013, Tesla received a subsidy from California for developing a fast battery-swap system. The idea was to replace a drained battery with a charged one, like swapping a gas canister. The system was never viable at scale, but it allowed Tesla to standardize certain modules, according to some analyses. Replacing a battery in a Model S costs around $20,000, a figure that could have been higher without that subsidy. Either way, the episode illustrates how subsidies can distort the market.
Musk's pay: Ponzi scheme or real company?
Elon Musk's pay package, valued at $50 billion, has been challenged in the Delaware courts. Shareholders claim the board of directors was not independent, with members close to Musk. A Delaware judge has already ruled in favor of the plaintiffs, although the process is still ongoing. The situation recalls the Botín case in Spain, where the Supreme Court upheld multibillion-dollar severance packages under the principle that if the board approves it, anything goes. The difference is that in Delaware the approval process is examined, not just the outcome.
Conclusion
The removal of free Autopilot is not an isolated incident, but a symptom of a business model that depends on subscriptions and subsidies. Tesla remains an overvalued company on the stock market, with shrinking margins and growing competition. The question nobody answers is how long this house of cards can hold up.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (19 replies).
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