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.
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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:
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:
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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.
"Rob's passion is technology and gadgets. An engineer by profession and an executive and founder at several high tech startups Rob has a unique view on technology and some strong opinions. When he's not writing about Tesla
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
2025 marked a critical year for Tesla as we further expanded our mission & continued our transition from a hardware-centric business to a physical AI company.
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla is bringing closure to its flagship Model S and Model X vehicles, which CEO Elon Musk said several years ago were only produced for “sentimental reasons.”
The Model S and Model X have been light contributors to Tesla’s delivery growth over the past few years, commonly contributing only a few percentage points toward the over 1.7 million cars the company has handed over to customers annually since 2022.
However, the Model S and Model X have remained in production because of their high-end performance and flagship status; they are truly two vehicles that are premium offerings and do not hold major weight toward Tesla’s future goals.
On Wednesday, during the Q4 2025 Earnings Call, Musk confirmed that Tesla would bring closure to the two models, ending their production and making way for the manufacturing efforts of the Optimus robot:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Musk said the production lines that Tesla has for the Model S and Model X at the Fremont Factory in Northern California will be transitioned to Optimus production lines that will produce one million units per year.
Tesla will continue to service Model S and Model X vehicles, but it will officially stop deliveries of the cars in Q2, as inventory will be liquidated. When they’re gone, they’re gone.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
“It is time to bring the Model S and Model X programs to an end with an honorable discharge.” pic.twitter.com/Czn7aQjJE1
Tesla has been making moves to sunset the two vehicles for the better part of one year. Last July, it stopped taking any custom orders for vehicles in Europe, essentially pushing the idea that the program was coming to a close soon.
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
That point is more relevant than ever as Tesla is ending the production of the cars to make way for Optimus, which will likely be Tesla’s biggest product in the coming years.
Musk added during the Earnings Call on Wednesday that he believes Optimus will be a major needle-mover of the United States’ GDP, as it will increase productivity and enable universal high income for humans.
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter, which was published on Tesla’s Investor Relations website after markets closed on January 28, 2025.
The results cap a quarter in which Tesla produced more than 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products. For the full year, Tesla produced 1.65 million vehicles and delivered 1.63 million, while total energy storage deployments reached 46.7 GWh.
Tesla’s Q4 and FY 2025 Results
According to Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP earnings per share of $0.24 and non-GAAP EPS of $0.50 in the fourth quarter. Total revenue for Q4 came in at $24.901 billion, while GAAP net income was reported at $840 million.
For full-year 2025, Tesla reported GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Total revenue reached $94.83 billion, including $69.53 billion from automotive operations and $12.78 billion from the company’s energy generation and storage business. GAAP net income for the year totaled $3.79 billion.
The following are live updates from Tesla’s Q4 and FY 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.
16:25 CT – Good day to everyone, and welcome to another Tesla earnings call live blog. There’s a lot to unpack from Tesla’s Q4 and FY 2025 update letter, so I’m pretty sure this earnings call will be quite interesting.
16:30 CT – The Q4 and FY 2025 earnings call officially starts. IR exec Travis Axelrod opens the call. Elon and other executives are present.
16:30 CT – Elon makes his opening statement and explains why Tesla changed its mission to “Amazing Abundance.” “With the continued growth of AI and robotics, I think we’re headed towards a future of universal high income,” Musk said, adding that along the way, Tesla will still be improving its products while keeping the environment safe and healthy.
16:34 CT – Elon noted that the first steps for this future are happening this year, thanks to Tesla’s autonomy and robotics programs, which will be launching and ramping this year. He also highlighted that Tesla will be making major investments this year, though the company will be very strategic when it comes to its funding. “I think it makes a ton of strategic sense,” Musk said.
16:36 CT – Elon also announces the end of the Model S and Model X programs “with an honorable discharge.” If you’re interested in buying a Model S or X, it’s best to do it now, Musk said. The Model S and Model X factory in Fremont will be replaced by an Optimus line. “It’s slightly sad, but it is time to bring the S and X program to an end. It’s part of our overall shift to an autonomous future,” Musk said.
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16:38 CT – Elon discusses how Unsupervised FSD is now starting for the Robotaxi service. He noted that these Unsupervised Robotaxis don’t have any chase cars as of yesterday. He reiterated Tesla’s plans for owners to be able to add their own vehicles to the Robotaxi fleet. Autonomy target for the end of the year is about a quarter or half of the United States, Musk said.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
16:41 CT – Elon noted that the Tesla Energy team is absolutely killing it. He also stated that Tesla expects its Energy business to continue growing, and that the “solar opportunity is underrated.”
16:43 CT –Elon also added that Tesla Optimus 3 will be unveiled in about three months, probably. The Model S and Model X line in Fremont will be a million-unit Optimus production line. Looks like Optimus is really coming out of the gate with large, meaningful volumes. “The normal S curve for manufacturing ramps is longer for Optimus,” Musk stated. “Long term, I think Optimus will have a significant impact on the US GDP.”
16:44 CT – Elon closes his opening statements with a sincere thanks to the Tesla team. He also noted that he feels fortunate to be able to work alongside such a talented workforce.
Elon ends his opening remarks with an optimistic prediction about the future.“The future is more exciting than you can imagine,” he concluded.
16:47 CT – Tesla CFO Vaibhav Taneja makes his opening remarks. He discusses several aspects of Tesla’s Q4 milestones. He noted that Tesla Energy achieved yet another gross profit record during the fourth quarter. There’s insane demand for the Megapack and Powerwall. Backlogs for these products are healthy this 2026. He also noted that Tesla ended 2025 with a bigger vehicle order backlog compared to recent years.
Lars Moravy confirms there will be Robotaxis of various shapes and sizes, perhaps outside of Cybercab and Robovan.— TESLARATI (@Teslarati) January 28, 2026
16:53 CT – Investor questions from Say begin. The first question is about Tesla’s expectations for the Robotaxi Network. Lars Moravy noted that it has the advantage of manufacturing and scale, and Tesla believes that the Robotaxi Network will significantly grow year over year. Elon highlighted that the Cybercab will be produced with no steering wheel or pedals. No fallback. Elon also noted that Tesla expects to produce more Cybercabs than all its other vehicles combined in the future.
16:51 CT – The next question is if Tesla still expects to launch new models, such as affordable cars. Lars Moravy noted that Tesla did release affordable variants last year, and Tesla is still pushing hard to lower its costs. That being said, Tesla is really pushing the Cybercab as its total addressable market is larger than consumer-owned cars. Lars also mentioned that Tesla will produce different vehicles for its Robotaxi services.
16:56 CT – Elon noted that eventually, Tesla will produce mostly autonomous cars. The exception would be the next-generation Roadster, which will be a true driver’s car.
17:03 CT – A question about Elon’s past comments about a potential next pickup truck was asked. Lars noted that the Cybertruck is still performing well in the electric pickup truck segment, though Tesla is known for flexibility. Elon added that Tesla will be transitioning the Cybertruck line to a fully autonomous vehicle line. He also stated that the Cybertruck is a useful vehicle. “An autonomous Cybertruck will be useful for that.”
17:10 CT – A question was asked about when FSD will be 100% Unsupervised. Elon noted that 100% Unsupervised FSD is already being used today, though only in the Austin Robotaxi program. Tesla is still being extremely careful with its rollout.
When asked about Tesla’s chip program, Elon noted that he feels pretty good about Tesla’s chip strategy. But in terms of selling Tesla’s chips outside Tesla, the company has to make sure it has enough chips for Optimus robots, data centers, and other programs first.
17:18 CT – Analyst questions begin. First up is Wolf Research. He asks about Tesla’s increasing Capex, specifically where the majority of it is going. The Tesla CFO noted that programs in six factories are going live this year, so that consumes Capex. The Optimus program also consumes a lot of resources. The growth of Tesla’s current capacity is also consuming a lot of resources. As for how these programs will be funded, the CFO pointed to Tesla’s massive war chest, as well as initiatives such as the Robotaxi Network.
17:21 CT – Morgan Stanley asks about Tesla’s xAI investment. The analyst asked about more information about how Tesla and xAI will work together. The CFO noted that this investment is part of Master Plan Part IV. Elon also mentioned some advantages for xAI’s technology for Tesla’s products, like Grok being used to manage a Robotaxi fleet or a group of Optimus robots.
17:24 CT – Barclays asks Elon about the constraints on memory. Does Tesla have any near term constraints for Tesla vehicles’ memory? Elon responded that the Tesla AI computer is already very compute and memory-efficient. The intelligence per gigabyte is important. Musk noted that Tesla is ahead of the industry by an order of magnitude or more.
17:29 CT – Cannacord asks about startups from China entering the humanoid market. What competitive advantage does Optimus have compared to these rivals? Elon stated that he believes China will be a key competitor in the humanoid robot market. China will be the toughest competitor for Tesla. That being said, Elon noted that Tesla believes Optimus will be ahead in real-world intelligence, electromechanical dexterity, and hand design.
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.
Credit: @AdanGuajardo/X
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