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> Tesla is pretty much the quintessential example of a rent-seeking company This seems impossible. How is it doing rent-seeking?
by robertlagrant 3y ago
> Tesla is pretty much the quintessential example of a rent-seeking company
This seems impossible. How is it doing rent-seeking?
- dylan604 3y agoMy understanding is they were offering subscription services. I could have misremembered that. I know other makers were considering the same type of thing.
- Sohcahtoa82 3y agoThere are only two subscriptions that Tesla offers: FSD and Premium Connectivity. And since you still have the option to purchase FSD outright, I don't consider the subscription option as rent-seeking. With Premium Connectivity, the way I see it, it's necessary to actually cover the costs associated with it. For those unaware, Premium Connectivity, you don't get any video/audio streaming services in the car, and the navigation can only use bare maps rather than satellite imagery. Note that these limitations don't apply if you instead tether to a mobile WiFi AP, such as your phone. The $10/month pays for the extra data your car uses on the mobile network, which could be a LOT of data if you watch video streaming while supercharging frequently. Unless Tesla is getting a sweetheart unlimited data deal from some carrier, there are probably some people that actually cost Tesla money from streaming a ton of video. But someone like me, who drives only ~5 hours/month, I'm probably not using much data from the audio streaming.
- moogly 3y agoThere are more. In the US, there's Tesla Electric for home charging at a fixed rate. Then there is the Supercharger membership for non-Tesla owners for a reduced rate per kWh.
- robertlagrant 3y agoSubscription services aren't rent-seeking. Why would subscription services be bad in the way that rent-seeking is?