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Opinion: Tesla has a service problem, and it needs to get addressed as soon as possible
Just recently, Tesla CEO Elon Musk was reminded of the fact that the company needs to expand its network of physical service centers. This is a point that needs to be highlighted these days, especially as Tesla’s vehicle production and deliveries reach new records. With Tesla poised to start producing vehicles by the millions in the near future, it is time for the company to acknowledge its service issues and ensure that its service network expansion sees the same level of dedication as its Supercharger Network ramp.
Tesla may be evolving into a robotics and AI company, but at the end of the day, it is also an electric car maker. And while EVs require far less service than their combustion engine-powered counterparts, they still need service and maintenance from time to time. This is especially true in cases of physical repairs such as the replacement of upper control arms, which are better suited for actual service centers.
It should be noted that while Tesla’s mobile service team is excellent and universally appreciated, they cannot address every single concern and repair. This could become a pain point for owners today, especially those who require repairs and maintenance that could not be accomplished by the mobile service team. Some Tesla owners have shared on social media that at times, they could end up traveling for hours just to get to the nearest service center. This system creates a negative ownership experience that could be detrimental to Tesla in the long run.
“Good Service” is Better Than “No Service” — At Least for Now
The company, after all, is producing vehicles at a scale that would have scared the pants off EV skeptics just a handful of years ago. Tesla will likely produce and deliver over a million vehicles per year within the next year or two, and by that time, the repair and maintenance needs of customers would likely be more substantial. A good portion of the company’s fleet would also be comprised of older vehicles then, some of which would likely require more maintenance and repairs.
The issue of the company’s lack of service centers has been brought up in past earnings calls, and most of the time, Tesla’s executives would respond by pointing to the growth of the company’s mobile service network, which could address an increasing number of repairs and issues from the comfort of owners’ homes or workplaces. Tesla also adopts the idea of the “best service” being “no service” at all. These goals would likely be attained in the future — especially as its factories become more automated and batteries become more advanced — but for now, Tesla has to focus on ensuring that existing customers, both new and old, are supported in the near-term.
Granted, the margin of error for physical service centers is substantial. There is a big human factor that determines if customers are provided a negative or positive experience during a service center visit, after all. This was highlighted recently by @JeffTutorials, the Model 3 owner Elon Musk recently responded to on Twitter, who reported that his experience with the company’s Princeton, NJ Tesla Service Center was nothing short of horrible due to the site’s staff. Such negative experiences could be prevented, however, provided that Tesla adopts strict policies for its service employees.
A $360 Billion Upside
Ultimately, there seems to be little downside to Tesla ramping its service centers at a similar pace as its Supercharger Network, which is already one of, if not the, best rapid charging system in the world. Apart from improving its customers’ overall ownership experience, expanding its service network would also allow Tesla to tap into a large, lucrative market. In Europe, for example, Tesla could breach the company car segment, which is worth $360 billion annually. Company cars are huge in Europe, with 60% of all new vehicle sales being made through corporate channels.
SAP SE, a German software maker and one of Europe’s largest tech companies, noted back in May that its employees are actually very interested in Tesla’s electric cars. And while it provides vehicles to its workers, SAP SE simply cannot commit to Teslas just yet because of the company’s poor service center network in the region. The same was true for chemicals giant BASF SE, which noted that it could not offer Teslas as a company car option for its 50,000 German employees until service centers are expanded.
It’s important to note is that improving service is not an “either/or” situation. Yes, mobile service could be ramped to address an increasing number of issues, but the company could also expand its physical service centers at the same time, and just as aggressively. Fortunately, Tesla does seem to have this in its plans, as confirmed by Elon Musk on Twitter. And if Tesla is indeed expediting its service center openings, then the company would effectively address one of its customers’ most persistent pain points.
Plus, in the long-term, wouldn’t service centers be a good site for Tesla Bots to practice their physical work capabilities?
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Tesla’s Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.
The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.
Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:
Tesla Diner opened exactly 1 year ago. Inspiring that futuristic places like this exist.
It’s our highest usage Supercharger in the world: 21.2 GWh delivered in a year, 1.6k sessions/day.
Top 10 Superchargers by energy delivered: https://t.co/9YvJ8lw696 pic.twitter.com/koB3AUJHws
— Max (@MdeZegher) July 21, 2026
On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.
Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.
Tesla makes major change at Supercharger Diner amid epic demand
Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.
Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.
Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to Bloomberg. Shares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.
Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.
However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.
S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.
Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.
At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.
Tesla’s long-standing saga regarding its door handles and a manual release has entered its latest chapter, and as a result, a big change is coming.
On Friday, the National Highway Traffic Safety Administration (NHTSA) denied Tesla’s petition that was seeking a defect investigation into roughly 180,000 Model 3 vehicles for an issue involving the emergency mechanical door release.
🚨 The NHTSA denied a petition from Tesla that would have thrown out concerns regarding its door handles.
NHTSA said Tesla’s petition did not present evidence of a safety-related defect warranting an investigation. The agency said a rulemaking process would be a better strategy. pic.twitter.com/j6PzUBM1mT
— TESLARATI (@Teslarati) July 24, 2026
NHTSA said that Tesla’s petition did not present evidence of a safety-related defect in the door handles or their emergency releases. Instead, the agency determined that it would rather solve the issue of the lack of labeling or location of emergency mechanical door releases and the federal safety rules that govern them.
Essentially, the NHTSA wants to create and enforce rules that would require automakers to make emergency door latch releases more clearly labeled in a car. Despite a Tesla having manual door releases on all four passenger doors, many people do not know they exist or how they work.
Tesla addresses door handle complaints with simple engineering fix
In recent times, Tesla has faced some criticism involving its door handles, specifically because some occupants have reported that they are unable to exit their vehicles after losing power. The door handles on a Tesla are electronically operated, but in the event that the 12V battery dies, there is a manual release that can be used.
The NHTSA only identified a single complaint involving the mechanical door releases: a 2022 Model 3 owner said the release was concealed and unlabeled after the vehicle lost power after a front-end collision. It has also already started to create a separate rulemaking process to make emergency door-egress systems more obvious.
It should be noted that all Teslas have mechanical emergency door releases, but they are placed in various locations as the vehicles have aged and been redesigned from year to year. Refer to the safety manual for your vehicle if you have any confusion about where the emergency releases are and how they work.
Tesla’s Supercharger Diner probably just secured more locations
Tesla short sellers win big after shares fall after earnings
