Skip to main content

Carmakers need to stop locking hardware features behind paywalls

More and more car companies are jumping on the services bandwagon, but they’re doing so in ways that could be considered somewhat controversial. Instead of inventing new services and building better experiences that drivers can unlock with an additional payment or subscription, car companies are turning to the hardware that has always been built into a car. That’s right — aspects of the car that you bought are more and more becoming unavailable until you pay an extra fee — and sometimes an ongoing one.

The latest to take this approach is Tesla. No, we’re not talking about the “full self-driving” tech that has long been offered as a subscription. Instead, Tesla has started selling upgrades to car buyers that don’t actually add anything to the car itself. Instead, they just unlock “additional range” from a battery that was apparently previously software-limited.

Recommended Videos

These upgrades are reportedly being offered to Tesla Model Y owners for between $1,500 and $2,000 and add between 30 and 50 miles of range to the car. There’s only one problem, though. The battery in the Model Y isn’t actually getting bigger; it was just previously told by software to not offer that extra range to the driver.

Not the first

Tesla isn’t the first to adopt the practice of locking hardware behind additional fees or subscriptions. BMW made headlines for locking heated seats behind a paywall and charging customers hundreds of dollars per year to access the feature. After heavy criticism of the practice, BMW rolled this subscription back, allowing customers to access heated seats without having to pay any extra. That came only shortly after BMW tried and also failed to charge customers $80 per year to access Apple CarPlay and Android Auto — features that have been offered by BMW and other automakers for free for years now.

A Tesla Model 3 render shows it driving down a desert road.
Tesla

Mercedes-Benz took a similar approach a few years ago, charging some customers a $1,200 yearly subscription to unlock “additional performance” from their car. Like Tesla and BMW, this subscription didn’t add any actual physical upgrades to the vehicle, instead simply telling the car through software that the driver was “allowed” to access the better performance.

I hate this approach. I think it makes complete sense for car companies to want to add additional ways to make money from vehicles that are already on the road. But doing so with the hardware of a car that a customer bought is downright shady. After all, there’s no difference in price for Tesla, BMW, and Mercedes-Benz to manufacture these vehicles — and it seems incredibly wasteful for things like the additional battery to have always been available to drivers, but unusable.

In this case, Tesla is holding a driver’s own car hostage. It’s true that Tesla doesn’t advertise cars as offering a certain battery capacity, but rather a certain range — but it’s still unoriginal and seems a little desperate.

So what to do instead?

Again, I get the fact that automakers want to be able to make money from vehicles that are on the road without having to convince drivers to buy new cars more often, but doing so by locking the built-in hardware behind a paywall is kind of pathetic.

Taylor Swift on SiriusXM in a Hyundai Palisade.
Phil Nickinson / Digital Trends

So what can automakers do instead? Well, there are plenty of ways to add value to a vehicle after the fact. A classic example is by selling a cellular subscription that adds internet connectivity to a vehicle. This isn’t necessarily a big money-maker for an automaker, considering the fact that the company still has to pay for this cellular connectivity in the first place to a company like AT&T or Verizon. But typically, automakers do still make a little off the top. Another classic example is offering access to satellite radio services like SiriusXM, which pays out shares in revenue to carmakers annually. But, as music streaming has become more common and unlimited data more prevalent, drivers have become less interested in paying for services like Sirius.

Most of the reasonable ways to charge a subscription to customers involve software. The only problem is that most automakers are bad at software. Automakers can barely make software that drivers want to use for free, let alone pay for — hence why so many drivers won’t buy cars without CarPlay or Android Auto. But, if automakers were to get better at software, they could charge for better software features, or features that rely on cloud computing — and thus cost the automaker to run in the first place.

Other opportunities arise with EVs. For example, automakers could charge subscriptions to charging stations, offering unlimited access to these stations for a monthly fee instead of a per-charge fee. They’d have to contend with charging companies to do so — but the convenience of having unlimited access to two or three of the largest charging networks may be worth it.

Two Electrify America Charging Stations.
Electrify America

Of course, there is a way for automakers to charge subscriptions for hardware. That’s by charging a subscription for all of the hardware. Some automakers, like Volvo, are already doing this — but the practice isn’t very mainstream just yet. The concept is relatively simple — instead of buying a car or leasing one, drivers simply pay a monthly subscription fee for as long as they want to use a vehicle, and when they’re done with the car, they stop paying and give back the car. As this practice becomes more common, it’s likely that older or less powerful vehicles will cost less. Sure, it’s similar to a lease — but less complicated, more flexible, and more appealing.

Car subscription services are here to stay. That’s especially true given the fact that traditionally car makers have made much of their money from things like parts and repairs. But considering the fact that EVs are more reliable and require less maintenance, that income source is drying up a little. Hopefully, automakers will find their way and figure out ways to charge subscriptions while actually adding value to the experience of driving their cars instead of holding hardware hostage. In the meantime, however, it’s likely we’ll see subscription services like Tesla’s more often.

Christian de Looper
Christian de Looper is a long-time freelance writer who has covered every facet of the consumer tech and electric vehicle…
It looks like the end of the road for Cruise robotaxis
A Cruise autonomous car.

Autonomous-driving operations at Cruise look certain to end after its main backer, General Motors (GM), said it will stop funding the initiative.

GM, which has owned about 90% of Cruise since 2016, announced the decision in a statement shared on Tuesday. It follows a challenging period for Cruise after one of its autonomous cars ran over a woman after she was knocked into its path by a human-driven car in San Francisco in October 2023. The incident led to California regulators suspending Cruise's license to test its driverless cars on the state's streets, a decision that prompted Cruise to pause operations in other locations where it operated. It restarted low-level testing in Arizona in May 2024.

Read more
Hyundai Ioniq 9 vs. Kia EV9: Electric SUV sisters battle it out
Hyundai Ioniq 9 driving

The long-awaited Hyundai Ioniq 9 is finally on its way. Hyundai has taken the wraps off a production-ready version of the electric SUV, showing a modern vehicle that could well be the electric SUV to beat when it finally rolls out to the public. But it will have to contend with Hyundai’s sister company in order to truly gain the title of best electric SUV in its price range. The Kia EV9 has been a go-to option for a few years now.

But is one of these SUVs actually better, or are they just different? We put the Hyundai Ioniq 9 and the Kia EV9 head to head to find out.
Design
There are some similarities in the designs of the Hyundai Ioniq 9 and the Kia EV9, but they also look a little different. First, the similarities. Both vehicles are clearly SUVs, with larger blocky shapes. But, while the Kia EV9 has straight lines and sharper angles, the Ioniq 9 is a little curvier, with a rounded roofline and sculpted curves in the side panels.

Read more
Find Ford gifts for everyone on your holiday list, no really
Ford Accessories used while camping for holiday gifts

When you're shopping for holiday gifts, auto and Ford accessories probably don't cross your mind, at least not initially. Unless, of course, you're planning some gift ideas for the car enthusiast you know. But actually, Ford has a lot of different gift options even for those who aren't big into cars and vehicles. I know, it's an odd proposal but hear me out. From electronics and exterior accessories to truck bed augments, interior gear, and even outdoor-friendly gear -- like for camping -- Ford has a ton of options. Just to provide some examples, first aid safety kits, truck bed camping tents, portable fridges, pet-friendly seat mats, even dashcams, keyless entry systems, and beyond.

You never know, you could find the perfect gift in Ford's accessories lineup.
Shop Now

Read more