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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.
Credit: SpaceX
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
Credit: xAI Memphis
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Tennessee.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
(Credit: SpaceX)
It is safe to say SpaceX won’t be going for electric rockets anytime soon.
In a characteristically blunt reply on X, SpaceX frontman Elon Musk stated, “Unfortunately, electric rockets are impossible,” following reports that MSCI had assigned SpaceX its lowest possible ESG rating of CCC.
The assessment, issued just this past week, coinciding closely with SpaceX’s public market debut, placed the company on par with nations like Russia in sustainability scoring and cited significant risks in environmental, social, and governance areas.
MSCI flagged SpaceX’s exposure to rocket emissions and other operational impacts, alongside governance concerns such as concentrated control by Musk and limited shareholder protections. Musk’s terse comment directly addressed the environmental pillar, underscoring a core physical constraint that ESG frameworks often overlook when evaluating high-thrust industries.
Unfortunately, electric rockets are impossible
— Elon Musk (@elonmusk) June 21, 2026
Electric propulsion systems do exist and are widely used in space. Ion thrusters and Hall-effect thrusters accelerate ionized propellant, typically xenon or krypton, using electric fields, achieving very high specific impulse, often exceeding 3,000 seconds compared to roughly 300–450 seconds for chemical rockets.
This efficiency makes them ideal for satellite station-keeping, orbit raising, and deep-space missions where low thrust over long durations is sufficient. SpaceX’s own Starlink satellites employ electric propulsion for these purposes.
However, launching from Earth’s surface demands something entirely different: enormous thrust delivered rapidly to overcome gravity and atmospheric drag. A typical orbital-class booster must generate thrust far exceeding its weight, often in the millions of Newtons within seconds.
Chemical rockets achieve this through exothermic combustion of dense propellants, producing high-mass-flow, high-velocity exhaust. Electric systems, by contrast, expel very small amounts of mass at extremely high speeds. Generating equivalent thrust would require impractical onboard power levels, massive energy storage or generation systems, and prohibitive added mass, rendering the approach infeasible with current or near-term technology.
Musk has previously expressed a similar sentiment, noting a desire for electric orbital rockets while acknowledging the inescapable requirements of Newton’s third law and energy delivery. The distinction is clear: electric propulsion excels once a vehicle is already in space; it cannot replace the high-thrust chemical phase required to reach orbit from the ground.
The episode illustrates broader critiques of ESG ratings. Proponents argue they incentivize better risk management and long-term sustainability. Detractors, including Musk—who has previously called ESG a “scam”—contend that such metrics can penalize essential activities when no practical alternative exists, potentially discouraging innovation in sectors like space access.
Elon Musk dubs the S&P 500 ESG as “outrageous scam” after Tesla gets booted from index
SpaceX has sought to mitigate launch-related impacts through reusability: Falcon 9 boosters have flown more than 30 times in some cases, dramatically lowering the manufacturing and emissions burden per kilogram delivered to orbit. Starship’s design further emphasizes rapid reusability and methane propellant, which can theoretically be produced via sustainable pathways.
Ultimately, Musk’s remark serves as a reminder that certain engineering realities persist regardless of scoring systems. As humanity expands its presence in space for communications, science, and exploration, balancing genuine environmental progress with technological necessity remains a central challenge.
ESG frameworks may evolve, but the fundamental limits of electric launch propulsion are unlikely to change soon.
Investor's Corner3 minutes agoSpaceX makes $20 billion move to optimize its balance sheet
Elon Musk2 hours agoSpaceX confirms third massive compute deal at Colossus data center
Elon Musk4 hours agoElon Musk responds to SpaceX’s ESG rating and says its rockets won’t go electric
