News
What Goes Into a Tesla Model S Annual Service?
I’m still shy of the 12 month mark on owning my Model S, but I just had my first annual service and wanted to share my thoughts and experience on Tesla’s annual service.
Frequency of Service
Tesla recommends that you have your Model S serviced every 12,500 miles or every 12 months, whichever comes first. This has always been problematic for me since I drive 30,000 miles a year. So by their rules I’d be getting an “annual” service every 5 months.
When I explained this to my Tesla rep during delivery of my Model S, they had recommended that I perform the service at 24,000 miles which seemed very arbitrary to me, but that’s what I did.
At 24,000 miles (less than 10 months into ownership) I called for an Annual Service appointment. The service person I spoke to was shocked I hadn’t had my car serviced yet with all those miles and I explained that I had been following their recommendation. My appointment was booked 3 weeks out. It wasn’t urgent so timing wasn’t a big deal, but it did mean that I would be going in for my first service at 25,500 miles.
When should I take my Model S in?
I took to the TMC forum and asked other owners what their Tesla annual service experience was like. Universally, owners are treating the annual service as just that, an annual service regardless of miles and type of service needed. However similar to my experience, some owners are receiving mixed guidance from Tesla on when the annual service should really take place.
This gets even more confusing when it comes to those with the pre-paid service plan. I did an analysis of Tesla’s pre-paid service plan when purchasing the car and realized that it just wasn’t for me
One Model S owner who goes by the handle of AmpedRealtor received the following email from Jerome Guillen, former VP, Worldwide sales and service (he just changed roles):
Dear Mr. [AmpedRealtor]:
Any customer who has paid for a 4-year service plan is entitled to 4 “annual service” visits. The customer can elect to bring the car whenever they desire: we recommend every year or every 12,500 miles (whichever comes first), but the customer are free to do whatever they essentially desire. They can bring the car every 18 months or every 6 months. In the end, they will receive the 4 “annual service” they have paid for. I hope this clarifies the situation.
Many thanks for your continued support. Best regards,
Jerome Guillen | VP, WW sales and service
While thats a nice email and statement, it isn’t what the contract says when you sign up for the pre-paid plan. So while Elon, Jerome, and others have stated other things its hard to commit to a contract that clearly states something different and then expect otherwise.
-
Ultimately, Tesla needs to get their act together on what an Annual Service really entails and make sure the paperwork matches the intent.
What Goes Into the Tesla Annual Service?
The Annual Service price (if not pre-paid) is $600. Its an all-day affair and usually involves you dropping off your car and getting a loaner.
In many areas, Tesla offers a valet service (for free) where they’ll pick up your car and drop off a loaner, but they’ve started clamping down on that service. Nowadays it seems that they only want to do the valet service if you’re within 10 miles of the Tesla Service Center. I wasn’t offered valet service (I work 14 miles from the service center) and dropped my car off myself which wasn’t a big deal — I always love seeing all the Tesla’s on their lot.
The actual annual service was described as follows on my invoice:
They basically go over the car and check everything out. Along the way they’ll also perform any other needed updates where needed.
There was a service bulletin:
Bulletin: Model S | SB-14-17-002 | Corrosion on 12V Positive Jump Post
And I had some corrosion so they replaced the parts that were of concern.
-They also did more than a normal “Annual” service since I was at twice the mileage for the annual and evidently they have different types of service at different mileages. This one they called:
24 Month/25000 Mile/40000 km Service (with Coil Suspension)
For that part of the service they removed, cleaned and lubricated front and rear brake pads and performed an alignment with some minor adjustments.
So while the service is annual, they do different things based on the mileage on the car again somewhat contradicting ideas of coming in whenever you want or only once a year regardless of mileage.
Extra Items
I generally have a list of less urgent items that I want addressed each time I go into the service center. I had two open issues this time as follows:
- One of my Tesla UMCs was not working.
- My right front tire was somehow rubbing when the wheel was at full turn and at low speeds (usually reversing into a spot).
The UMC (my original one that came with the car) was faulty and they replaced it for free after testing it themselves. I’m a little concerned it didn’t even last a year before failing but at least it was covered by the warranty. Fortunately when it failed I had a spare and had started using that after several bad charges with the original UMC.
To address the rubbing noises coming from the right front tire, Tesla mostly blamed the noise on my aftermarket Tsportsline wheels and Nokian tires but was able to address it with a wheel alignment. I don’t really buy that the aftermarket parts were the issue given there’s a forum discussion going on with owners with the exact same issue on the same front right wheel. But whatever they tweaked, it is much better now. I think their design tolerances in the wheel well are too tight.
Oddly they had an item on the service sheet as a customer complaint from me that I didn’t bring up when making the appointment:
Concern: Customer states cruise control is not working normally.
-This was actually derived from an email to ownership a few months before the service about the problems around limited regeneration in the cold. It wasn’t a complaint about the car as it was working as designed, it was a suggestion that they may want to review how things worked in that area as I thought there was a safety issue.
Tesla collects all concerns / complaints that you email them with and will include it into your service checklist.
Getting a Loaner
Any service event (planned or unplanned) is an opportunity to experience a Model S with a different set of configurations. While I was hoping for a P85D, I ended up with a beautiful blue P85+.
While the extra performance was nice, I wasn’t blown away by it since I had a lot more trouble with keeping the wheels from spinning. With my S85 I really have to work at losing traction and the traction control does a great job. With the P85+ (it had winter tires on too, Sottozero) the tires spun a lot and I didn’t like the experience — the power was too much for either the tires or the traction control or both.
The other thing the car had that was new for me was the Alcantara headliner. I really liked the look of it and would have to think hard on that option next time. I’d want to hear about maintenance/cleaning experiences first though.
Summary
My first paid Tesla service appointment in over 25,000 miles cost a total of $600 and was overall a good experience. I felt that it was good value for the amount of work Tesla did on the car. Tesla did everything I expected (and more) and returned my car cleaner inside and out than it has been in many months of driving through a harsh New England winter.
Granted it got dirty before I even reached home but it was still great to see how beautiful the car looked when clean. I’m ready for spring.
-
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
-None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
Credit: Tesla
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
-Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
Credit: SpaceX
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
-High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
-Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Elon Musk23 minutes agoSpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Investor's Corner12 hours agoTesla has one big financial question to answer for investors: Morgan Stanley
Investor's Corner13 hours agoSpaceX AI investment gamble will make it a big winner, firm says
