What Are The Pros And Cons Of Tesla’s Service Model?

Tesla is known for sparking an electric vehicle revolution. It’s also brought services to customers, like mobile repairs and over-the-air tune-ups, that were once reserved for only the most elite car companies.

Unlike the independent dealership model used by companies like Ford, GM, and almost every other car manufacturer in the US, where dealerships and service centers are owned and operated separately from the brand itself, Tesla operates all of its own service centers. But it isn’t easy to completely change the model, and Tesla has struggled to keep up with service as sales have soared. Customers have complained about long wait times, a lack of loaner cars, and having to travel hours to get to the nearest service center when a mobile ranger can’t fix the problem.

Other electric vehicle startups are following in Tesla’s footsteps with their service models. But will it be possible for Tesla and others to scale up service fast enough and keep customers happy?

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What Are The Pros And Cons Of Tesla’s Service Model?

[capitaldiaz]

9:15 “lucid only has 15 service centers in North America so far” that’s one per car they have on the road 😂

[Alexis_Marcelo]

I saved a ton of money on my Tesla service by being too poor to afford a Tesla.

[criancrna]

I got my Model Y in November 2021. Service Center told me said they can’t diagnose my extremely loud heating pump because “every car is different.” It’s definitely not the same experience compare to MB or Audi or Volvo. I know two of my friends canceled their orders. One of my friends received car with cracked bumper.; she decided not to pick up and Tesla canceled their order and asked her to re-order with raised price. And after that no response. I don’t think Tesla cares about their individual customer.

[fakih]

They call them Stealerships for a reason. Especially bending over customers with dealership mark-ups.

[jessepotter]

I am excited for the EV future and I think Tesla is leading the way as a whole. However, I can't bring myself to spend $45k-$65k on a vehicle knowing there are still quality control and service issues. I'll stick with a legacy auto maker for my first EV purchase and give Tesla the time to sort out their shortcomings.

[oscarkelly]

Imagine Elon Musk of our time saying, I have realised the value of money, it's tremendous. Money is magic. I'll take all I can get, I hope I never miss a meal again. I've been dead broke so many times.

[simonnichtunge]

Good video. Nice to see Rich Rebuilds on CNBC 😁

[GET]

I have owned my MODEL X since 2016. I love the TESLA Service from TESLA. My BMW and Mercedes service wasn’t as good. The media is gaslighting this service issue worse than it actually is. I waited 45 days for parts for my BMW X5 M-Sport series a year before the pandemic. Why is the media covering that BS? Because BMW bad service doesn’t get “clicks”.

[Oxazepam]

3/4 of Teslas ever sold were sold in the last 3 years. Cars usually don't need major repair within the first 3 years. In 5 years from now though...

[tnguyen]

I use to hate on tesla for years. I own 11 cars and trucks. last year when gas jumped $5 gallon. We bought our first tesla model 3. It’s the greatest car I have owned to date. We put 40k miles in 7 months. It’s been an awesome car. I signed up for a cyber truck too

[nunyabidness]

Yes, the dealership requirements in state laws are bad. No, getting rid of them will not solve the problem of bad service before or after the sale. Amazingly, if you drive a car so cheap to you that it’s not a big deal, you find the car business is just like other businesses.
The problem is the cost of entry for any business today which keeps down competitive pressures. All the employee and consumer “protections” have been weaponized to keep out competition. Ironically, it’s reached a high point when the better solution (independent reputation sources) is maturing.

[TrestanSKYWALKR]

I’ve had the Mobil service and the taken my Tesla into a service center. I definitely prefer the mobile service. It’s AMAZING! However, taking it into the service center wasn’t any worse than taking my Mercedes in for service. So, I would still give Tesla the edge.

[jason]

Rich is a great guy! He knows what he’s talking abojt

[mkcan]

Tesla needs to provide specialized outside mechanics with repair information as it should be illegal that you can’t get your car serviced where you want.

[azadilaw]

Tesla’s ownership experience is terrible. Never making that mistake again. Learned my lesson.

[thebagnechannel]

I have a Tesla and think this is a totally fair summary.

[cybertruckfuture]

I have thoroughly enjoyed my Tesla service experience. I particularly appreciate mobile service, which is an incredible convenience and time saver. My new General Motors product, on the other hand, requires frequent visits to the dealer and hours of down time without a loaner or transportation.

[johnqq]

All EVS need to let go of their ego and start a conjoined service center...easier for them to spread out and share the cost.

[mrhickman]

As other commenters have mentioned I find the lack of mention of state regs making it difficult for non-traditional auto companies to establish service and sales presence within their states as a regrettable omission. While I enjoy my Tesla very much I try not to be a "fanboy". However, CNBC certainly seems to cast any shortcomings in the worst possible light. I particularly noticed the comment about recalls without mentioning numbers of recalls to date that required either mobile or a service center visit. Many of the more publicized recalls have been resolved purely by over-the-air updates.

It is interesting that CNBC did not even cover the bit about being able to schedule service only through the Tesla phone app. Though I have been intimidated by that at first, the two times I've done this ( a damaged tire replacement, and a 12-volt battery change) turned out to be straightforward and facilitated by a prompt chat with a representative that could arrange the proper type of service, mobile in both cases.

[kevinlampley]

When it comes to the world of investing, most people don't know where to start. Fortunately great investors of the past and present can provide us with guidance