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Tesla tests specialized Service Centers that are tailored to specific vehicle models

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Tesla is taking another step to provide more efficient and top-quality customer service, this time by introducing specialized Service Centers that will cater to specific vehicle models.

Tesla owners in Orange County, California recently received an email informing them that the new Service Center in Santa Ana will only schedule Model 3 vehicles for servicing while the Service Center in Costa Mesa will be dedicated to serving owners of Model X and Model S. Other service centers in the county will continue to service all Tesla vehicle models.

The following email was sent to some Tesla to owners in Orange County (Credit: ericbs via TMC)

We are excited to announce the opening of our newest Service Center in Santa Ana — designated for Model 3.

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Starting today, to improve the service experience for all owners, Santa Ana will only schedule Model 3 owners, while Costa Mesa will only schedule Model S and Model X owners. All other Service Centers in the area will continue to serve all Models.

Schedule your next appointment with your Tesla app. For most repairs, Mobile Service will be selected when scheduling your appointment to have a technician come to you — the most convenient way of servicing your car.

We look forward to delivering tailored service throughout Orange County.

With Service Centers in over 32 countries and a growing Mobile Service Fleet, Tesla’s specialized service centers can be seen as an efficient way to improve throughput at each location. With specialization, Tesla as an organization can make its customer service workforce perform their work more effectively. A Model 3 car mechanic, for example, will have a specialized set of skills specific to fixing the mass-produced sedan and this familiarity with the vehicle will result in quicker turnaround. Gaps in skills can also be avoided which in turn will lead to a lower risk of errors in the job and lead to less supervision needed.

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This latest move by Tesla shows its commitment to addressing the concerns of its customers.  In 2019, a survey by research firm Bernstein concluded that Tesla owners love their cars but the automaker’s biggest problem is its customer service. Elon Musk has also promised last year that Tesla would stock all common parts at its service centers so services can be completed quickly.

Having Tesla Service Centers with a specific focus on the vehicle model will also help boost the confidence of its customer base, which can translate to brand loyalty. While Tesla vehicles do not require regular maintenance, the Silicon Valley carmaker, since the start, has made its service support easily accessible to vehicle owners. Model 3, Model S, or Model  X owners can easily book a service visit appointment via the Tesla app. There is also the option for mobile service support where technicians will go to a customer’s location on the owner’s preferred date and time. From the palm of one’s hand, owners can practically book a service in less than a minute.

Last month, Tesla announced during its Q4 2019 update that its mobile service fleet has almost doubled in 2019 to 743 vehicles. The company continues to experiment with ways to make customer service more convenient, such as the integration of service bookings with platforms like China’s WeChat and QR codes.

 

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A curious soul who keeps wondering how Elon Musk, Tesla, electric cars, and clean energy technologies will shape the future, or do we really need to escape to Mars.

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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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