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Tesla Motors Service Centers Make a Pit Stop

Before I mention the pit crew like experience, I do want to mention that one of the most awesome parts of the Tesla service experience is the offer to valet your car at home.

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Tesla Motor service center. (Source: Tesla Motors)

Tesla Motor service center. (Source: Tesla Motors)

During the earnings conference call with Elon Musk and team in early August, Musk mentioned that Tesla Motors service centers are implementing a Formula One pit crew approach for Model S owners here in the U.S and in China.

In August, Musk said:

“So we actually bring the car and we kind of hit with a pit crew, like a Formula One pit crew. So instead of having one person per bay, the car gets slowly worked on over several days, it actually comes in and a team attacks it, and we’re constantly improving the tools and the metrics to say, how can we get the car perfect as fast as possible. We actually bring in people from Formula One to help with the training on this. And I think there’s a real opportunity to revolutionize the way service works.”

So how is Tesla Motors new Formula One approach working and what has the service center experience been, in general, for the young automaker?

Recently, I interviewed Model S 85 owner, David Zygmont, about his trips to Tesla Motors service centers over the last two years, the Model S service package and has he seen this Formula One approach in action. The slightly edited interview is below:

Grant Gerke: What actually made you decide to buy the service package, which includes 4 service visits in four years or 50,000 miles?

David Zygmont: So being an early adopter, being a really early product for a really young company, I think it was pretty realistic that there would be some need for service and I had hoped like, ‘Wouldn’t it be great if this all electric car would be really maintenance free, free of some real critical headaches.’ However, I should really expect some software glitches, right? I mean this car runs software for everything and I was expecting there to be quite a number of those initially.

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So, I feel like there is still a bunch of inconsistencies regarding when to bring in the car. Some service centers report that you really only need to come every 12 months and some say you still need to do it every 12,500 miles. My service center in Highland Park, Ill., says it’s every 12,500 miles.

And, there’s no ambiguity in the contract as it ends at 50,000 miles or four years, whichever you reach soonest. So, I’m going to get maximum value because I’m almost at 20,000 to 25,000 miles a year, somewhere in that range. I need to do it every 12,500 to get maximum value of this, I’ve already been three times for a service checkup.

Grant Gerke: What’s your service center experience been like, so far?

David Zygmont: I’ve had a pretty long relationship, a number of visits with Tesla service and for the most part, the people are really great. I really like working with people, especially the group that I worked with over the last nine to twelve months.

However, they don’t really share a lot in terms of documentation with these annual checkups. When you look at the paperwork, it says: We did an annual service and the parts used are batteries for the fobs and wipers for your windshield.

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And I was like, “Okay, great.” That’s my $600?

Some of those visits have also included a number of other line items that I feel like some would happen whether I have the annual service or not because some of them were kind of classified as these service bulletins, which I think is very standard industry practice to say: hey, when your car is in, if we see this as a concern, because your VIN is labeled as… it may have this concern. So they look and if they see the concern, they fix it, and I’ve been very appreciative.

Other non-scheduled service center visits have included parts replaced and they’ve all been driven by some sort of failure and/or observation on my part that says this doesn’t feel right, and Tesla Motors has said either: We agree and made the repairs or they’ve said no to and I totally think that’s reasonable. An example would be Tesla considers it a wear issue, but some would also consider a design issue about why the wear is happening.

Also, I think the service center communication systems and behaviors that’s been implemented as a team have greatly evolved. Early on, I had services where I didn’t hear for three days and I’m like: what’s happened to my car?

But now it’s just amazing service as I receive multiple text message updates per day when they have my car. All my recent service has been same-day stuff and they’ve done it really quickly, maybe that’s reflective of their Formula 1 approach.

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David Zygmont’s Model S at Crater Lake last summer. (Source: David Zygmont)

Grant Gerke: Speaking of Formula One, what about this pit crew approach? Any signs of it in recent visits?

David Zygmont: Before I mention the pit crew like experience, I do want to mention that one of the most awesome parts of the Tesla service experience is the offer to valet your car at home. So, it entails the service center coming to your house and bringing a Model S loaner and leaving it with you. Then they bring it back all fixed, serviced and whatever that’s been done with it. No one else does that. So, I just want to quickly make mention of that.

But sometimes it actually works better in my day if I could just exchange with (a car) the service center on my way to work. Recently, I was waiting to pick up my car after some service and a car had just come off of a flatbed in front of the Highland Park shop. I watched as a pit crew went to work on that car immediately. It was four service guys–four technicians–and someone was in the driver seat with their laptop in front of them, plugged in on the side port of the Model S. Other team members had covers off, under the hood and they pulled some covers to access some different parts in the front area.

It was really clear that this was like all hands on deck, let’s triage this real fast. I thought that was pretty cool.

What about everyone else? What were some of your expectations for Tesla Motors service centers?

I want to thank Dave for his time and be sure to check out my podcast with Dave Zygmont’s road warrior adventures in his Model S 85 across the supercharger network, “Podcast | Dial-in a Model S Road Trip with These Tips.

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"Grant Gerke wears his Model S on his sleeve and has been writing about Tesla for the last five years on numerous media sites. He has a bias towards plug-in vehicles and also writes about manufacturing software for Automation World magazine in Chicago. Find him at Teslarati

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Tesla hints it could see ‘a few more vehicles’ released soon

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

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Tesla Board Chair Robyn Denholm hinted the company could see “a few more vehicles” coming out and being released soon, although there is no indication of what could be on the way based on her comments.

However, Tesla has hinted toward several potential releases in the coming years, as other executives, including Chief Designer Franz von Holzhausen, have talked briefly about what could be on the way.

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

It was a vague and almost cryptic sentence, as, in all honesty, it was not completely clear whether she was talking about recent releases that are just making their way to market, like the Model 3 and Model Y “Standard,” or new vehicles altogether.

Nevertheless, it’s worth dissecting.

Tesla “Standard” Models

On October 7, Tesla launched the Standard Model 3 and Model Y, stripped-down versions of their now “Premium” siblings. The Standard trims lack premium features like leather seats, a rear touchscreen, and a glass roof, among other features.

Tesla begins deliveries of its affordable Model Y Standard

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These cars are just starting to be delivered for the first time, so it is possible that Denholm was referring to these cars.

Potential Model 2 Hint?

There has always been a looming vehicle model that many Tesla fans and owners have been intrigued by: the Model 2.

This car was hinted at being the $25,000 model that Tesla was rumored to be developing, and many thought that was the vehicle that would be released earlier this month, not the Standard Model 3 and Model Y.

Instead, the Model 2 could be something that would enable Tesla to reach an entirely new consumer base, including those who are not able to swing the payment for the company’s more premium offerings.

It seems Tesla will have to launch some sort of extremely affordable model in the future, and with the Cybercab being slotted at that rough price point, it would not be out of the question for it to be in the realm of possibility for future releases.

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It’s worth noting, however, that it is probably unlikely this will happen. Tesla is so deadset focused on autonomy, it seems Cybercab would take extreme precedence over the unconfirmed “Model 2.”

Cybertruck-inspired SUV

Tesla fans have been begging the company to develop a full-size SUV that would compete with the Ford Expedition or Chevrolet Tahoe, but the company has not given any indication that this would be something it would build.

Nevertheless, there was a very subtle hint in a recent promotional clip that showed a Cyber SUV mock-up placed strategically next to a clay model of a Model 3:

Tesla appears to be mulling a Cyber SUV design

The Model X is simply not what people want when it comes to an SUV, as it does not have the seating capacity and cargo space that many need with a full-sized SUV.

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This issue, in particular, has been one that has been extremely relevant to the company’s future lineup as consumers have shown they would be interested in a Tesla vehicle that fit this description.

Additionally, von Holzhausen said in September that a Cyber SUV or a smaller electric pickup with a more traditional design is “definitely things we’ve considered…We’re working on so many innovative and fun things.”

Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck

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Investor's Corner

Tesla enters new stability phase, firm upgrades and adjusts outlook

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

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Credit: Tesla China

Tesla is entering a new phase of stability in terms of vehicle deliveries, one firm wrote in a new note during the final week of October, backing its position with an upgrade and price target increase on the stock.

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

While most firms are interested in highlighting Tesla’s future growth, which will be catalyzed mostly by the advent of self-driving vehicles, autonomy, and the company’s all-in mentality on AI and robotics, Pozdnyakov is solely focusing on vehicle deliveries.

The analyst wrote in a note to investors that he believes Tesla’s updated vehicle lineup, which includes its new affordable “Standard” trims of the Model 3 and Model Y, is going to stabilize the company’s delivery volumes and return the company to annual growth.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

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Tesla launched the new affordable Model 3 and Model Y “Standard” trims on October 7, which introduced two stripped-down, less premium versions of the all-electric sedan and crossover.

They are both priced at under $40,000, with the Model 3 at $37,990 and the Model Y at $39,990, and while these prices may not necessarily be what consumers were expecting, they are well under what Kelley Blue Book said was the average new car transaction price for September, which swelled above $50,000.

Despite the rollout of these two new models, it is interesting to hear that a Wall Street firm would think that Tesla is going to return to more stable delivery figures and potentially enter a new growth phase.

Many Wall Street firms have been more focused on AI, Robotics, and Tesla’s self-driving project, which are the more prevalent things that will drive investor growth over the next few years.

Wedbush’s Dan Ives, for example, tends to focus on the company’s prowess in AI and self-driving. However, he did touch on vehicle deliveries in the coming years in a recent note.

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Ives said in a note on October 2:

“While EV demand is expected to fall with the EV tax credit expiration, this was a great bounce-back quarter for TSLA to lay the groundwork for deliveries moving forward, but there is still work to do to gain further ground from a delivery perspective.”

Tesla has some things to figure out before it can truly consider guaranteed stability from a delivery standpoint. Initially, the next two quarters will be a crucial way to determine demand without the $7,500 EV tax credit. It will also begin to figure out if its new affordable models are attractive enough at their current price point to win over consumers.

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Elon Musk

Tesla preps for a harsh potential reality if Musk comp vote doesn’t go to plan

A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.

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tesla cybertruck elon musk
Tesla CEO Elon Musk unveils futuristic Cybertruck in Los Angeles, Nov. 21, 2019 (Photo: Teslarati)

Tesla could be forced to look for a new CEO in the coming months, as a crucial November 6 Shareholder Meeting vote will determine whether Elon Musk will stick around.

A major vote is coming up at the 2025 Tesla Shareholder Meeting, as investors will determine whether Musk should be given a new compensation plan that would award him up to $1 trillion and more than one-fourth of the total voting power within the company.

Tesla board chair reiterates widely unmentioned point of Musk comp plan

A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.

“My fundamental concern with regard to how much voting control I have at Tesla is if I go ahead and build this enormous robot army, can I just be ousted at some point in the future? That’s my biggest concern,” Musk said at last week’s Earnings Call. “That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”

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Tesla Board of Directors Head Robyn Denholm has been on somewhat of a PR tour over the past few days, answering questions about the compensation plan, which is among the biggest issues currently for the company.

Denholm told Bloomberg yesterday that Tesla investors need to be prepared for Musk to abandon ship if the package is not approved, which brings on a new question: Who would take over the CEO role?

That is a question Denholm also answered yesterday, bringing forth the conclusion that Tesla would not look for an outside hire if Musk were to leave the company. Instead, it would promote someone internally.

The way it was reported by Bloomberg and Reuters seems to make it seem as if Tesla is preparing for the worst, as it states the company “is looking at internal CEO candidates,” not preparing to do so.

Of the executives at Tesla who immediately come to mind as ideal candidates for a potential takeover should Musk leave, Tesla China President Tom Zhu and Head of AI Ashok Elluswamy both come to mind. Zhu has monumental executive experience already, as he was appointed to the role of Senior VP of Automotive back in December 2022.

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He then returned to China in 2024.

It seems Tesla wants to align its future, with or without Musk, on the same path that it is currently on, and internal candidates might have a better idea of what that looks like and truly means.

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