Tesla FSD Learnings

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The coming launch of Tesla's Full Self Driving (supervised) subscription in ANZ should not be viewed as a novelty - it’s a marker of acceleration. In the next few years, connected vehicles will shift from today’s limited over-the-air fixes into fully fledged digital ecosystems: in-vehicle servicing conversations, predictive maintenance, embedded payments, and data-driven services. The question for dealerships is whether their technology foundations will be able to operate inside this live, cloud-first, API-driven world.
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The Data & Market Trajectory

The scale of change is clear in the numbers:

• The connected-car market is forecast to grow from US$95.14B in 2024 to US$386.82B in 2032, at a CAGR of ~19.2% - with Asia-Pacific leading as the fastest-growing region.¹
• In Australia, cloud adoption is surging: public-cloud spend is projected to hit A$26.6B in 2025, up nearly 19% year on year (Gartner) and major hyperscalers are driving local capacity, with Amazon alone committing A$20B to new data centres in Australia between 2025 -2029.

This isn’t incremental change. It’s structural transformation and that will have a big impact on how vehicles, data, customers, and dealerships interact.
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What the FSD Model Highlights

Across brands, the direction of travel is clear. Tesla’s subscription signals that over the coming years advancements like these will be commonplace. We're likely to see:

1. In-vehicle, two-way servicing communication & campaigns
   Drivers will approve quotes, book slots, and complete authorisations directly through their vehicle, and vehicle app, UX. OEM-led OTA (over-the-air) campaigns will boost return rates, drive retention, shrink recall costs and accelerate insights and reporting.
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2. Predictive maintenance powered by telemetry
   Live sensor data could trigger automated parts pre-picks, repair orders, and advisor alerts - reducing downtime and raising first-time-fix rates.
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3. In-vehicle messaging as the primary channel
   Vehicles and their associated apps, not SMS or email, will become the default surface for service updates, warranty notices, marketing, downloadable upgrades, and brand messaging. By 2030, almost every new car sold globally will be connected, making this shift unavoidable.^{2
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4. Usage-based services normalised
   ADAS (advanced driver assistance systems), AI concierge, infotainment bundles, in-vehicle features, and energy services (vehicle-to-home, vehicle-to-grid) will be packaged as dynamic, data-driven subscriptions and services.
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The Ecosystem This Highlights

These advancements won’t live in silos. They will run inside a connected, sharing, live, scalable, secure, enterprise ecosystem.

• Always-on cloud will ingest, process, and act on telemetry in real time.
• Open APIs will link OEM and dealership portals, payments, service platforms, and third-party partners.
• Enterprise security & resilience will be required to protect vast volumes of vehicle and customer data.

To participate successfully in this ecosystem, dealerships will need modern, cloud-native technology that can connect, scale, and integrate.
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Implications for Dealerships

Dealerships will require systems that are:

• Cloud-native and scalable
• Open and connected, with APIs that allow integration across OEMs, third parties, and new communication channels
• Secure and compliant, built on enterprise-grade infrastructure with robust management practices
• Capable of real-time engagement, not just reporting after the fact

Legacy, server-based tools will struggle with data volume, speed, and guardrail requirements as complexity grows.

Why Delay Becomes Risk

Few businesses relish upgrading infrastructure, retraining staff, and integrating new systems - time, financial investment, and resource costs can be challenging. But the risk of waiting is greater. Customers certainly won’t wait for dealerships or brands to catch up - they’ll gravitate to providers who anticipate needs, provide proactive service, and communicate through modern digital channels.

Jack Welch (ex-CEO of General Electric) famously said "When the rate of change on the outside exceeds the rate of change on the inside, the end is near" - well, Tesla have just made the rate of change on the outside that little bit faster, and we should all take note.
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What to Do Now

1. Audit: Review your software foundations. Where is your data stored? Is it accessible & flexible? Does it allow read & write access? How open are your systems to new integrations and APIs? What is your current cost of upkeep and maintenance? Will your existing system still be relevant in five years time?
2. Roadmap: Define what “connected lifecycle management” means for your business - not just vehicle sales, but service, parts, customer communication, and retention.
3. Infrastructure: Assess core platforms, integration pathways, and communication channels. Can your systems handle real-time data and communication (or provide seamless connection to those that can)?
4. Governance: Understand who owns the rights to the data in your systems (clue - it might not be you!), assess security, privacy, flexibility, and regulatory oversight.

By examining these four elements, you’ll either confirm your business is future-ready or uncover gaps that need attention — both outcomes are valuable.
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Conclusion

Tesla’s FSD subscription in ANZ isn’t just a feature - it’s a lens on the future. Vehicles are software platforms, where lifecycle management, parts, maintenance, warranty, and communication are all data-driven processes.

Dealerships that modernise their technology backbone - embracing cloud, APIs, and connected platforms - will have the best chance of remaining at the centre of the customer relationship. Those that don’t, risk being sidelined - not necessarily today, but almost certainly tomorrow.

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Sources:

1. Fortune Business Insights - 2025

2. McKinsey - "Unlocking the full life-cycle value from connected-car data", 2021

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