Tesla Announces Ability to Transfer FSD; Must Take Delivery in Q3 [Full List of Requirements]

July 20, 2023

By Kevin Armstrong

Tesla will allow owners a one-time transfer of FSD to another Tesla, but only third Q3

MKBHD/Twitter

In a landmark second-quarter earnings call, Tesla reported revenue of $24.9 billion and a net income of $2.7 billion, considerably surpassing Wall Street estimates. But catching many by surprise was the company allowing a one-time opportunity for customers to transfer their Full Self-Driving (FSD) package during the next three months.

This topic has dogged Tesla and Elon Musk for years, and rightfully so. The price of FSD has skyrocketed. Therefore any early adopters of the technology that got it for the bargain basement price of $5,000 would have to pay triple that fee if they wanted to update their Tesla. In May, the company posted on Twitter asking for improvement ideas. The ability to transfer FSD was high on the list.

Once again during the earnings call, a question about FSD transferability arose. Musk revealed that, in response to customer demand, Tesla would permit the one-time transfer of FSD for the duration of Q3. This opportunity would allow existing Tesla owners to upgrade to a new Tesla model without repurchasing the costly FSD package, which sells for $15,000 in the US.

Tesla Hints at Potential FSD Licensing Partnership

In the same earnings call, Musk indicated another groundbreaking initiative on the horizon. He revealed early talks of licensing Tesla's FSD technology to another major automaker, without disclosing specifics.

This prospective collaboration underscores Tesla's unique standing in the autonomous vehicle market. Musk emphasized the crucial role of Tesla's extensive road data, gathered through its Autopilot and Dojo projects, in its success. This invaluable pool of data, unmatched by any competitor, underpins Tesla's rapid progress in AI development and its leading position in the industry.

Listen to Tesla's Earnings Call

You can listen to a replay of Tesla's earnings call below.

FSD Transfers and Future Expectations

The decision to allow FSD transfers during Q3 is anticipated to drive a spike in Tesla sales. Owners have traditionally been reluctant to upgrade their Tesla vehicles, as the high cost of the FSD package — coupled with its non-transferability — made such upgrades financially unattractive. This unprecedented concession, combined with Tesla’s existing FSD monthly subscription service in the U.S., is expected to enhance Tesla's market appeal and profitability in Q3 significantly.

Tesla used the Q2 earnings call platform to share another impressive milestone: vehicles equipped with FSD beta have driven more than 300 million miles. The significance of this achievement extends beyond its impressive scale. It represents a wealth of data collected for training Tesla's autonomous systems, further improving the safety and performance of FSD.

Requirements for FSD Transfer

Tesla has now posted the requirements for the transfer of FSD to another vehicle, according to Twitter user, @Kdahlenburg

The requirements are below:

We are pleased to inform you that as a loyal Tesla owner with Full Self Driving capability, you may be eligible to participate in our current transfer program. We appreciate your continued support and dedication to sustainable transportation.

Program: Receive Full Self Driving capability on any new Tesla vehicle delivered between July 20, 2023 and September 30, 2023 when you forfeit the Full Self Driving capability on your current Tesla vehicle. Subject to the below terms and conditions. Tesla does not guarantee delivery within the program's end date.

Terms and Conditions:

In order to be eligible for this program, you must:

1. Be the legal and registered owner of Tesla vehicle that currently has Full Self Driving capability included at the time of delivery of the new Tesla vehicle. The vehicle cannot be the subject of a pending cancellation or buyback request. For EMEA only: Those on an Operational Lease with third-party Lease and Fleet Management companies are ineligible, unless they first purchase the vehicle from the leasing company.

2. Take delivery of your new titled Tesla vehicle between July 20, 2023 and September 30, 2023.

3. Accept the forfeiture of the Full Self Driving capability on your current Tesla vehicle.

Alternatively, you can choose to trade-in your current Tesla vehicle altogether directly with Tesla when you purchase your new Tesla vehicle. Tesla will remove Full Self Driving capability from your current Tesla vehicle up to one week before your scheduled delivery day for your new Tesla. During this process, your current vehicle will automatically reboot for a few minutes after put in park.

4. The Full Self Driving capability can only be transferred once and so cannot be transferred to another vehicle or to another person even if the vehicle is privately sold. This offer cannot be combined with any other promotion, and is not redeemable for cash.

5. Tesla reserves the right to change, modify, or terminate this offer at any time without prior notice.

6. The forfeiture of Full Self Driving capability on your current vehicle is non-reversible after you take delivery of the new Tesla vehicle, or we remove Full Self Driving capability from your current vehicle, whichever occurs first. This remains non-reversible even in the event that you cancel or reverse your purchase after you have taken delivery.

7. Used vehicles and vehicles for commercial purposes are not eligible for this program.

8. Tesla may remove the Full Self Driving capability from your new vehicle if it determines in good faith that you have breached any of these terms or made any misrepresentations about Full Self Driving on your current vehicle.

9. This offer cannot be applied retroactively after the new Tesla vehicle is delivered.

Please read the terms and conditions above carefully. By signing this binding acceptance letter, you acknowledge that you understand and agree to the terms and conditions outlined above.

To accept this offer, please complete the information below, sign, and return this letter to your Tesla Sales Advisor before delivery of your new Tesla vehicle. Vehicle Identification Number (VIN) of the Tesla vehicle with forfeited Full Self Driving capability: ...

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Is Tesla Removing Free Music Streaming (Streaming in North America and Spotify in Europe)?

September 28, 2024

By Karan Singh

Not a Tesla App

Tesla currently offers free music streaming with every Tesla, although you’ll need Tesla’s Premium Connectivity package to stream over the vehicle’s cellular data or be on WiFi. In North America, Tesla includes what they used to call “Streaming,” and have just recently renamed to call LiveOne. However, in Europe, where LiveOne isn’t available, Tesla provides a free license for Spotify, which allows owners to stream the service for free without having to subscribe.

However, it looks like this may be coming to an end. We recently received an anonymous tip that Tesla would be ending this free benefit for its European customers. While we haven’t been able to confirm this just yet, it does seem likely. Let’s take a look at why we think this could be happening.

European Spotify Premium

Tesla’s European customers receive a free license of Spotify Premium right now – whether they’re subscribed to Spotify Premium or not. This means customers can listen to ad-free music, have unlimited skips, play music in any order, and be able to sort and queue songs for listening. However, the account is limited to listening in your Tesla, much like LiveOne in North America.

You’re also not given the credentials to the Spotify account, preventing you from using the same account on other devices. If a customer decides to subscribe to Spotify Premium on their own, they can still log in to their account in their Tesla and share the same Spotify account and playlists with other devices, just like you can in other regions.

Removal of Free Premium Benefits

Given the tip we received and some other recent information, we expect this change to happen. This appears in line with other changes to Tesla’s streaming services, including the changes to Slacker/LiveOne Radio in North America.

As Tesla adds additional music services like YouTube Music, Amazon Music, Apple Music, and SiriusXM in the future, it becomes more likely that Tesla vehicles have a music service someone may already subscribe to. This is especially true with the addition of Amazon Music, which is included with an Amazon Prime subscription. According to Statista, there are now over 180 million Amazon Prime members.

Subscribing to a music service has also become much more popular in recent years. In the United States alone, there are now more than 90 million music streaming subscriptions (Forbes), and that trend continues to grow year over year.

While Tesla likely only pays a small fraction of what a customer would pay for a Spotify Premium subscription, even if it’s just 50 cents per month, that amount would definitely add up with the more than 6 million Teslas on the road today.

Tesla certainly has the data to understand how many customers use the service that’s included in the vehicle and will use this to make the transition at the right time. At some point, it just doesn’t make sense to continue to pay for a service most customers don’t use.

Timeline

We were told that this change would happen this year, so it may not be much longer before we hear about this change officially from Tesla. What’s not clear is whether this would impact all customers or potentially only new customers. A lot may depend on their deal with Spotify and LiveOne and whether it’s based on a flat fee per vehicle or a monthly/yearly fee.

Based on industry changes alone, we would expect this to impact all customers. However, we’ll have to wait for official confirmation from Tesla, as until then, this should be considered a rumor.

Tesla Begins Winding Down Solar Installation Business

September 27, 2024

By Karan Singh

Not a Tesla App

Tesla purchased SolarCity, a large solar and backup installer, back in 2016 and shortly thereafter began installing its unique Tesla Solar Roof, regular Tesla Solar panels, and Tesla Powerwalls for both commercial and residential customers.

However, as the years have passed, Tesla has lost its interest in the actual installation portion of the business. They’re more than happy to continue producing Solar Roofs and expanding Powerwall production, but for the most part, their in-house rate of installations has slowed drastically.

Since Q2 2020, Tesla has seen a 10% or greater drop per quarter in the number of in-house Solar Roof, Solar, and Powerwall installations every quarter.

Third-Party Certification

Tesla has instead begun to certify third-party installers throughout North America and Europe for Powerwall and solar panels and within the United States for Solar Roof.

Tesla launched the Certified Installer Program in 2020 and said it has approximately 2,000 certified installers in over 14 countries—and those certified installers have set up over 1 million installations. James Bickford, Tesla’s Director of Global Sales, Residential Energy Products, announced the expansion of the Certified Installer Program and its new push on LinkedIn.

The Certified Installer Program provides several things to get third parties ready to install and commission Tesla’s home energy ecosystem, including virtual and in-person training, on-site training, custom installation tools, and the Tesla One Software Platform.

In addition to those supports, Tesla’s Partner Platform offers marketing support resources and a dedicated access system for a personal Account Manager from Tesla.

Tesla One Dashboard

The Tesla One dashboard offers third-party installers a one-stop-shop platform for managing quotes, installations, and repairs in one mobile app.

It is a convenient-looking application that lets third-party installers see what tasks they need to perform for specific installations and also helps them scale particular installations to customer requirements.

While this isn’t a new direction for Tesla overall, we’re seeing a distinct move in the energy business from Tesla as a first-party installer of its products to a more hands-off approach where local electricians and contractors will install Tesla products under its auspices.

We’re interested to see where Tesla continues to go with this, as they’ve seen their Powerwall business expanding in the last few years, while Tesla Solar and Solar Roof have dropped off many people’s radars lately.