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Scaling Tesla Service Centers with Production
In a high tech startup, small or large, the effectiveness in which the business can scale is crucial to its success. Tesla has been known for its world class customer service, which it undoubtedly has, but recent experiences with replacing a Tesla 12V battery here in New England has me asking the question, can Tesla service scale at a rate to match its production?
The Early Days
Tesla service centers are going above and beyond when it comes to customer service. Some of this is to account for early design and quality challenges with the Model S, but also to make up for the limited number of service centers that are available. Either way, Tesla has done a stellar job with customer satisfaction up until this point. For the second year in a row Tesla has topped Consumer Reports satisfaction index.
But as new Model S owners continue to hear about Tesla’s world-class customer service by word of mouth and through mass media, the expectations are set to an extremely high level that service centers will need to deliver against. As Tesla Motors continues to focus its efforts on production and scaling the Supercharger network, they’ll need to ensure that Service Centers scale at a rate to match the growing customer base.
My Tesla Service Center Experiences
There hasn’t been much to service on my Model S other than a tire rotation thanks to the marvels of its simple design. However, my experiences in dealing with a busy Tesla Service Center led me to believe that they’d rather I have went somewhere else for the tire rotation than to have it performed at their facility.
Generally when I need to take my ICE cars in for service the most I have to wait is 1-2 days. My most recent experience with fixing 12V battery issue through the Tesla Service Center here in New England took nearly 2 weeks. Admittedly, some of that was due to poor weather and a holiday in between but there were still seven business days where the service center was too overloaded to get me in within the usual 1-2 days.
From talking to other Tesla owners it sounds like service experiences can be a mixed bag of results depending on where you live. One Model S owner based out of California, reported a similar issue with the 12V battery but managed to receive a call back within 15 minutes and later booked for service the following day. As for me? It took several phone calls, two emails and almost an entire business day gone before I was able to get schedule an appointment. The actual service that the Tesla technicians performed was excellent, but the scheduling process was abysmal.
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When the day of service finally arrived, I told the Tesla technician that it was fine to pick up the Model S from my work place and bring it back that same day since they didn’t have a loaner available. The technician arrived by Uber promptly at 10:30am, jotted down some notes and then drove away in my car. The service department had promised to have it back by 3:30pm but in reality I got the vehicle back at 7pm. Fortunately I had no other plans that evening.
Scaling Tesla Service Centers
There was one Tesla Service Center serving all points north of Connecticut on the East Coast at the time when I purchase my Model S. The local Tesla Store had mentioned that they sold nine hundred Model S’ in this area alone and this was over a half a year ago. Today there is still only a single service center supporting the entire area but with many more Teslas on the road.
A second Tesla Service Center is planned for Dedham, MA but is not online yet. What I find interesting is the fact that both service centers are geographically close to one another which doesn’t seem to make a lot of sense to me.
This is a lot of area to cover for a single or even two service centers. Given the distances involved in covering such a large area, the technicians are running all over New England to pick up or service cars which just doesn’t scale well.
Summary
I believe that Tesla has fallen behind in scaling its service centers supporting the Model S roll out, at least when it comes to the New England area and likely overseas. It’ll be crucial for Tesla to start keeping a closer eye on service center response times and volume of service, if not already.
In addition to monitoring real-time growth of the Supercharging network Tesla owners should also be watching the rate in which Tesla Service Centers are being deployed.
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
