So i just tested this.
iCloud -> iPad in Lost Mode
iPad -> DFU Restore to stock iOS 7.0.2 -> connect wifi and go to activation screen
iCloud doesn't seem to be tracking the device whether or not the restored iPad is connected to Wi-Fi. This doesn't make sense, why not send the device's location the moment the device is connected to the internet?
iCloud -> iPad in Lost Mode
iPad -> DFU Restore to stock iOS 7.0.2 -> connect wifi and go to activation screen
iCloud doesn't seem to be tracking the device whether or not the restored iPad is connected to Wi-Fi. This doesn't make sense, why not send the device's location the moment the device is connected to the internet?