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Tesla falls behind in J.D. Power owner satisfaction study

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Tesla has fallen behind a few points on a recently published owner satisfaction study, with others such as Rivian, Porsche, and Jaguar landing some of the index’s top spots.

J.D. Power published its 2024 U.S. Automotive Performance, Execution and Layout (APEAL) Study last week, which measured owner satisfaction with their vehicles after 90 days of ownership. The index looked at responses from 99,144 owners of 2024 model year vehicles, noting that satisfaction for mainstream brands has increased from not resonating well with consumers in past years.

Tesla had an overall score of 870 in the evaluation, dropping from its 878 score in the 2023 APEAL Study. Meanwhile, OEMs like Porsche, BMW, Dodge, Ram, and several others saw their scores jump year over year.

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“Traditional manufacturers have listened to the Voice of the Customer,” notes J.D. Power Senior Director of Auto Benchmarking Frank Hanley. “They’re launching enhanced vehicles that are more in line with what customers want, including improved interior storage and higher quality materials, as well as ensuring features have ease of use.

“For BEVs, recent launches from traditional manufacturers have surpassed perennial leader Tesla when it comes to owners’ level of emotional attachment and excitement with their new vehicle,” Hanley said.

J.D. Power also notes that the study took place from July 2023 through May 2024, based on vehicles registered from April 2023 through February 2024. The APEAL is now in its 29th year with the 2024 publication, requesting that vehicle owners consider their satisfaction with 37 separate vehicle factors.

Infotainment systems were the lowest-ranking across all the categories evaluated with an average of 823, though the figure still marked a 5-point improvement from last year. Vehicles using Android Auto or Apple CarPlay generally ranked better, with averages of 832 and 840, respectively.

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Despite Rivian and Tesla gaining high scores on the overall evaluation, these automakers and Polestar were not awarded, due to the brands not meeting study award criteria.

“Since J.D. Power is prohibited by Tesla, Polestar and Rivian from sampling owners in all states, we are not able to include their models with rank eligible models from other manufacturers.” explains Hanley.

J.D. Power’s top-ranked vehicle brands in the 2024 APEAL Study

Top 10 premium brands by owner satisfaction

  1. Rivian (900)*
  2. Porsche (891)
  3. Jaguar (886)
  4. Land Rover (882)
  5. BMW (881)
  6. Mercedes-Benz (876)
  7. Lincoln (874)
  8. Genesis (873)
  9. Tesla (870)*
    premium segment average (870)
  10. Cadillac (868)

Top 10 mass-market brands by owner satisfaction

  1. MINI (858)
  2. Ram (854)
  3. Kia (853)
  4. Hyundai (846)
  5. GMC (845)
  6. Volkswagen (844)
  7. Buick (842)
  8. Chevrolet (841)
    mass-market segment average (838)
  9. Dodge (837)
  10. Honda (836)

*These brands did not meet the criteria for the APEAL Study’s awards, meaning that they were not rank-eligible, according to J.D. Power.

Other recent assessments from J.D. Power

Last month, Tesla, Rivian, and Polestar were given low ranks in the J.D. Power Initial Quality Study for 2024, as many battery-electric vehicles (BEVs) were reportedly found to require more repairs, in part due to including newer technology.

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In May, J.D. Power ranked Tesla’s mobile app the best among several automakers, just ahead of Mercedes, BMW, and Genesis. The firm also said earlier this year that Mercedes-Benz and Tesla have the best websites in the industry.

Updated 7/29/24: Added second quote from Frank Hanley detailing the exclusion of Tesla, Rivian, and Polestar from awards.

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla ends Full Self-Driving purchase option in the U.S.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Credit: Tesla

Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.

The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.

Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.

In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.

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Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:

There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.

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Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.

Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.

Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.

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Musk bankers looking to trim xAI debt after SpaceX merger: report

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.

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Credit: SpaceX

Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.

The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.

SpaceX IPO is coming, CEO Elon Musk confirms

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The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.

Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”

That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.

X merged with xAI last March, which brought the valuation to $45 billion, including the debt.

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SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:

“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”

The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.

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Tesla pushes Full Self-Driving outright purchasing option back in one market

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

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Credit: Tesla

Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.

The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.

The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.

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Tesla hits major milestone with Full Self-Driving subscriptions

However, Tesla just launched it just last year in Australia.

Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.

The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.

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In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.

The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.

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