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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.
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.
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.
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.
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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Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla is bringing closure to its flagship Model S and Model X vehicles, which CEO Elon Musk said several years ago were only produced for “sentimental reasons.”
The Model S and Model X have been light contributors to Tesla’s delivery growth over the past few years, commonly contributing only a few percentage points toward the over 1.7 million cars the company has handed over to customers annually since 2022.
However, the Model S and Model X have remained in production because of their high-end performance and flagship status; they are truly two vehicles that are premium offerings and do not hold major weight toward Tesla’s future goals.
On Wednesday, during the Q4 2025 Earnings Call, Musk confirmed that Tesla would bring closure to the two models, ending their production and making way for the manufacturing efforts of the Optimus robot:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Musk said the production lines that Tesla has for the Model S and Model X at the Fremont Factory in Northern California will be transitioned to Optimus production lines that will produce one million units per year.
Tesla Fremont Factory celebrates 15 years of electric vehicle production
Tesla will continue to service Model S and Model X vehicles, but it will officially stop deliveries of the cars in Q2, as inventory will be liquidated. When they’re gone, they’re gone.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
“It is time to bring the Model S and Model X programs to an end with an honorable discharge.” pic.twitter.com/Czn7aQjJE1
— TESLARATI (@Teslarati) January 28, 2026
Tesla has been making moves to sunset the two vehicles for the better part of one year. Last July, it stopped taking any custom orders for vehicles in Europe, essentially pushing the idea that the program was coming to a close soon.
Musk said back in 2019:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
That point is more relevant than ever as Tesla is ending the production of the cars to make way for Optimus, which will likely be Tesla’s biggest product in the coming years.
Musk added during the Earnings Call on Wednesday that he believes Optimus will be a major needle-mover of the United States’ GDP, as it will increase productivity and enable universal high income for humans.
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
