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Software Controlled Upgrades

I bet you think this is about features that are largely software which can be enabled by a simple software upgrade... at a fee of course. Or maybe you think this is about software enable to hardware features that cost very little to add but can bring additional revenue and so become "features" enabled by software upgrades... again at a fee.

Both of these make sense to me. Obviously there is very little cost to shipping software with a unit which can be enabled in the field. Even if there is *some* cost to include the hardware for a given feature, as long as that is minimal then they are earning extra profit by providing you those features and letting you reap the benefit (while the real benefit to you is a lower overall cost of the unit because of simpler logistics). A good example to this is the optional bandwidth upgrades available on some scopes. The hardware is there, it just needs to be turned on in software. The added cost is minimal, in essence the maker is taking less profit for the lower end units.

But what if the cost of the feature is a significant part of the total product cost. Does it make sense to ship all units with that feature and only enable it for a fee? That has got to be reflected in the price for the lower end units. It can't all be paid for by the users of the feature... unless most users buy it.

So what am I talking about?

***************** Today we?re excited to introduce the all-wheel drive Model X 60D. ... the Model X 60D delivers 200 miles estimated range, a top speed of 130 mph and zero-to-60 acceleration in 6.0 seconds.

... The Model X 60D can later be upgraded through a software update to

75 kWh to increase range by about 20%. *****************

So they sell the car with all the batteries it will ever have, but disable 17% of them unless you pay for the extended range option! Not only do you have to pay for these batteries, you have to pay to lug them around!

Then there is the emergency issue. My cell phone will let me dial 911 even if I haven't paid the bill. It would not be hard to imagine a situation where you need that extra 20% range to get somewhere, possibly in an emergency. Is there a way to get to it? It's there in the car, but inaccessible.

I see this is not the first time Tesla has done this and they claim it lowers their costs. I'm surprised actually. I would have thought saving 17% of the cost of the battery would be significant.

This really bugs me.

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Rick C
Reply to
rickman
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Most likely the lifetime of the batteries benefits from the fact that they are not fully cycled (not fully charged and/or not fully discharged).

So those that do not pay for the extended range may benefit from a longer battery life than would be obtained from smaller batteries.

Reply to
Rob

My guess in the software upgrade improves the regenerative braking and tweaks the acceleration curve. Possibly not included with original purchase as the software is still being worked on.

Dan

Reply to
dcaster

Not sure that would show up. These things are seldom fully discharged anyway. Do you run your gas tank dry?

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Rick C
Reply to
rickman

They provide frequent updates to the software anyway.

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Rick C
Reply to
rickman

Maybe Tesla is including their increased warranty costs. Batteries will die sooner if deep cycled.

Or they just want the money.

I anticipate an eventual collapse of the Musk empire.

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John Larkin         Highland Technology, Inc 

lunatic fringe electronics
Reply to
John Larkin

Of course you do, in spite of the fact that they have deposits for half a million cars due out next year.

In the car manufacturing business even that may not make them profitable overnight, but as long as they continue to give the public what they want, they will be on the road to profitability regardless of whether or not their cars suit John.

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Rick C
Reply to
rickman

It could also be that extended testing proved they can deepen the charge/ discharge cycles with acceptable reliability. The higher price covers the development costs and maybe higher warranty costs .

Reply to
Mark White

I think you'd be much more likely to run your tank dry if you had a gas pump at home and a very few locations away from home that could supply fuel...none of which could do it quickly or guarantee access when you needed it.

Reply to
mike

Or you would just drive conservatively and know where the refill stations are. Most people put miles on their cars running to work and would recharge every night.

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Rick C
Reply to
rickman

Isn't that what I just said? If your commute consumes 80% of your charge, you're gonna run it to 20% and fill up at home. For my gas car, I consider 20% to be below the comfort level. Not all trips are planned. And some of the most important ones are unplanned and health related. "Sorry honey, put a tourniquet on it. The Tesla will be charged up in an hour or so."

Reply to
mike

^^^^^^^^^^^^^^^^^^^^^^^^^^^^ I was responding to this.

Unless I am not reading right, we are saying different things. You made an analogy of a gas powered car that had the same limitations as an electric car to say the car would often be run dry. Now you come up with a 20% range left from commuting to work. I think it would be more like 80% left. I think the vast majority of commutes are under 20 miles each way. 40 miles is about 20% of a 200 mile range. Then you make up a fictional example of running the car dry and then having a medical emergency... call the ambulance.

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Rick C
Reply to
rickman

We were recently watching O'Reilly's Legends and Lies and were pondering where is Dorchester Heights... even though having been a student at MIT, we couldn't place where that was. (It's near Roxbury.)

Got out a map and mused, the distance from downtown Boston to I95 is about the same distance we drive for groceries, movies, or restaurants... in about 10 minutes... in Boston that's what, about an hour's drive ;-) ...Jim Thompson

--
| James E.Thompson                                 |    mens     | 
| Analog Innovations                               |     et      | 
| Analog/Mixed-Signal ASIC's and Discrete Systems  |    manus    | 
| San Tan Valley, AZ 85142   Skype: Contacts Only  |             | 
| Voice:(480)460-2350  Fax: Available upon request |  Brass Rat  | 
| E-mail Icon at http://www.analog-innovations.com |    1962     | 

             I'm looking for work... see my website.
Reply to
Jim Thompson

Along with a new ice age, in much the same time frame.

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Bill Sloman, Sydney
Reply to
bill.sloman

I suspect what he means is "expect". About the only way of anticipating an eventual collapse - actually doing something in expectation of an eventual collapse - would be short-selling shares in Musk's empire.

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Bill Sloman, Sydney
Reply to
bill.sloman

later, but with the future value of money now.

We will see when they have to deliver the 1/2 millions $30K cars. Tesla teased the market with cheap cars, which is killing off their luxury models. They have to somehow close the gap between 30K and 60K.

Meanwhile, they can keep buying other companies with bloated Tesla stocks.

Reply to
edward.ming.lee

But, if you're brave, you can ride a rental bike and get there in 5 minutes and not have to pay $20 to park. Or you can take the MBTA (2 trains, a bus, and a 20 minute walk). Or, you can teleconference with somebody a mile away on the other side of the river and never leave air-conditioned comfort.

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Grizzly H.
Reply to
mixed nuts

Tesla was out of cash, so took $400e6 worth of deposits on a car that doesn't exist. This should be interesting.

At least some of those are scalpers:

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Since the deposit is refundable, the risk is moderate.

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John Larkin         Highland Technology, Inc 
picosecond timing   precision measurement  

jlarkin att highlandtechnology dott com 
http://www.highlandtechnology.com
Reply to
John Larkin

Is it refundable after the bankruptcy?

Reply to
krw

No, so the trick is to get out in time.

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John Larkin         Highland Technology, Inc 

lunatic fringe electronics
Reply to
John Larkin

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