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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 Full Self-Driving (Supervised) has taken yet another significant step forward in Europe. On May 29, Estonia became the third European Union country to approve the advanced driver-assistance technology, following approvals in the Netherlands and Lithuania.
Tesla Europe announced the news on X, confirming the expansion has continued across the continent that, at one time, seemed to be taking its sweet old time giving any approval to the FSD suite.
FSD Supervised now approved in Estonia🇪🇪. Rollout will begin soon pic.twitter.com/y5a64qlp5m
— Tesla Europe, Middle East & Africa (@teslaeurope) May 29, 2026
Estonia’s Transport Administration (Transpordiamet) granted the approval by recognizing the type certification issued by the Dutch vehicle authority RDW. This mutual recognition mechanism, enabled by EU regulations, allows other member states to fast-track deployment without repeating extensive local testing.
The Estonian authority noted that Tesla’s FSD had undergone rigorous evaluation on European roads for approximately 18 months before the initial Dutch approval in April 2026.
FSD Supervised remains classified as a Level 2 advanced driver-assistance system (ADAS). Drivers must maintain full attention, keep their hands on the wheel, and stay ready to intervene at any moment.
The system assists with tasks such as automatic lane changes, navigation through city streets, and responding to traffic objects, but it does not constitute full autonomy. Estonian officials emphasized this distinction, underscoring that safety responsibility lies entirely with the driver.
The rapid progression across the Baltic region highlights Tesla’s strategic approach to European expansion. The Netherlands provided the foundational type approval in April, unlocking doors for neighboring countries.
Lithuania followed swiftly in mid-May, with rollout beginning shortly thereafter. Estonia’s decision, coming just days later, demonstrates how smaller, digitally progressive nations are accelerating adoption.
Tesla owners in Estonia can expect an over-the-air software update in the coming weeks, bringing the latest FSD capabilities to compatible vehicles
This expansion builds on Tesla’s global momentum. FSD Supervised is now available in 11 countries worldwide, including the United States, Canada, Australia, and South Korea. In Europe, the approvals signal growing regulatory confidence in Tesla’s vision-based AI approach, which relies on cameras and neural networks rather than lidar or radar-heavy alternatives used by some competitors.
For Tesla, these European milestones are more than symbolic. They validate years of data collection and software iteration while opening new revenue streams through FSD subscriptions and purchases.
As the company continues refining its AI models with real-world miles from diverse driving environments, including Estonia’s variable winter conditions, the dataset grows richer, potentially benefiting global users.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Tesla Full Self-Driving expansion in Europe continues with new addition
Elon Musk strikes down reports on SpaceX IPO rumors
