Tesla axing physical key cards in new penny-pinching exercise

The world of electric cars is all about changing habits. Drivers have learned to plug in their cars instead of visiting a gas station, and for many Tesla owners, they have ditched the car key entirely. The primary "key" for a Tesla Model 3 or Model Y has been the owner's smartphone for a while now. It is a convenient system: walk up to the EV, and it unlocks; walk away, and it locks.

As a backup, Tesla has always included two physical key cards. These credit-card-sized keys use RFID technology and are perfect for valets or when a phone battery dies. But now, new evidence suggests Tesla may be preparing to stop including these key cards, making them an optional extra purchase.

This news does not come from an official announcement. Tesla famously closed its public relations department back in 2019. Instead, followers of the brand must act like detectives, searching for clues about future changes. The clue this time comes from the owner's manual.

As first reported by the Not A Tesla App blog, the company quietly removed a specific sentence from the manuals for new Model 3 and Model Y electric cars. The line, which read, "Tesla provides you with two Model 3/Y key cards, designed to fit in your wallet," is now gone.

This change seems to have happened alongside the release of the new, lower-cost Standard trims of the Model 3 and Model Y. While removing one sentence might seem small, it is a classic Tesla move. The company has a history of changing its owner's manuals just before it changes the car.

For example, Tesla removed language about Autosteer being standard from the Cybertruck manual. Later, buyers learned they had to purchase the expensive Full Self-Driving package to get the feature. This key card situation appears to be following the same playbook.

Why would Tesla stop giving keys to its customers? The answer, as it often is with Tesla, comes down to money. This is a clear example of the company "squeezing pennies and percentages" from its production line. If Tesla stops including the key cards, it will likely sell them as an accessory. The current price for a replacement key card from Tesla is $40. While $40 is almost nothing compared to the $39,990 price tag of a new Model Y Standard, it represents a clever two-part financial win for the company.

First, Tesla saves money on production. Even if each key card only costs the company $2 to manufacture, those savings add up quickly. Based on last quarter's vehicle delivery numbers, that small change could save Tesla nearly $1 million.

Second, the company creates a new revenue stream. If all 1,789,226 customers who received a new electric Tesla in 2024 had to buy a $40 key card set, it would generate over $71 million. Even just looking at the last quarter, that would be nearly $20 million extra in revenue.

For most day-to-day driving, this change may not matter. Tesla's "phone-as-a-key" system is known for being reliable, which is not something all makers of electric cars can claim. Competing brands have faced criticism for their own unorthodox key solutions not working as well, while most Tesla owners will happily continue using their phones.

The real problem will surface in common situations where the owner is not the one driving - pulling up to a restaurant valet or dropping your EV at a third-party repair shop won't be as easy. What about parking in a city garage where an attendant needs to move the car? In these cases, handing over a smartphone is not an option. While a driver can grant virtual access, most service workers want a simple, physical key. The RFID card was the perfect solution.

This "nickel-and-diming" feels strange when you buy a car that costs over $40,000 and find that a key is not included. But that seems to be the entire point. Tesla is betting that a customer who just spent that much money on a new electric vehicle will not think twice about paying an extra $40 for a useful accessory.

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