The problem is that feels unfair, because you pay the HW which is capable of doing 220hp and they limit it to 201hp. I do not understand the logic behind it. For 700 dollars that could be added to the price so easily… i do not get the reasoning of the marketing department.
I think the bigger problem is that it's a subscription and not a one-time purchase; paying more for more power has always been a thing, and sometimes it's a trivial difference. E.g. old Detroit Diesels could be easily upgraded substantially in power with bigger volume fuel injectors, and the various sizes are just a small machining difference.
Typically ICE cars will offer variants of the "same" motor with different cams or pistons or even cylinder heads for the higher hp models alongside that better tune though.
They might be happy with $700 up front. However, I suspect they really want you to sign up for $200/yr and forget about it, even if you move to a place where you can't use the extra HP. They also want the opportunity to make money from the person you privately sell your car to.
