Tesla Service Struggles To Keep Up With Sales Volume

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Published on March 21st, 2019 |

by Chris Boylan

Tesla Service Struggles To Keep Up With Sales Volume

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March 21st, 2019 by Chris Boylan

While Tesla’s car production and sales volumes have grown at an unprecedented pace, the company continues to struggle with the challenges of servicing this massive influx of new customers. As the volume of cars delivered has grown, so have the complaints about long waits for scheduled service, extended delays in having even basic service jobs completed, and the inability to get replacement body and mechanical parts in a timely fashion. While electric vehicles typically require much less maintenance than ICE (internal combustion engine) vehicles, and many issues can be addressed via over-the-air software updates, there are times when physical service needs to be performed.

Last month, Consumer Reports dropped the Model 3 from its recommended vehicles list due to owner reports about reliability, and yet the publication also reports that Tesla is the top brand in terms of overall owner satisfaction. Why the dichotomy?

“In most cases, reliability issues will undermine satisfaction,” says Jake Fisher, senior director of auto testing at Consumer Reports. “But when a vehicle has an enthusiastic following, like with Tesla, owners may overlook some issues.”

But just how much leeway will customers — particular customers who are new to the brand — give the company if their service experiences are below par?

This year’s Bernstein survey of Tesla owners exposes a troubling trend. While 87% of Tesla owners who responded to the survey said they “love their Tesla” (up 2% from last year), only 42% of respondents rated their Tesla service experience as “excellent” — a 15% drop from last year. Long wait times for appointments and poorer rates of problem resolution were cited as the most common issues related to poor marks.

Too Many Cars, Not Enough Parts
As a Model 3 owner, I’ve suffered with my own service issues and extended loss of use due to parts delays. A little fender dent on my Model 3 last spring led to the loss of my car for over a month. There’s currently only one Tesla authorized body shop in New York City, and they can only turn cars around as quickly as they can get the parts and do the work. More recently, I had to have the trunk lid replaced on my Model 3 Performance, and that led to another six weeks in the body shop. Again, the delay was blamed on inability to get replacement body parts: a simple trunk lid. And when the trunk lid finally arrived, the existing license plate mount wouldn’t fit on it. Apparently, Tesla made a running change to this part. So, for now, the shop has taped the license plate right onto the trunk using double-sided tape while waiting for the new mount to arrive.

Other Tesla owners have had it far worse. “We had one Tesla Model X in last year. The car had been struck in a front-end collision, causing damage to the steering link,” a service tech (who preferred to remain anonymous) told me recently. “We had that Model X up on the lift for well over two months while waiting for the necessary parts from Tesla, and this is a car that was only a few years old.”

Accidents happen. And when they do, a reliable supply of body parts is necessary. In this pic, a Tesla sits on a lift while getting some major surgery.

Good Service? Bad Service? It Depends Where You Live
As for the traditional service experience, results seem to vary significantly, depending on the customer’s location. “Service has been excellent in recent months. I brought my Model X to Rocklin (CA) for an airbag warning message and it was fixed in about 2 hours. Loaner cars have been plentiful. Mobile service has also been great. Have used them several times recently,” says Matthew Chan from Davis, California. Tomas in Chicago has also had good luck. “Just today, in advance of next week’s service visit, a tech reviewed my logs, did remote diagnostics, determined a fix in a specific coming software release, and saved me a service visit. They also gave me a personal phone number and email in case I want to check back. This is typical of the excellent service I’ve had since 2012.”

Rajinder S., from San Jose, California, has had mixed results, depending on which service center he visits. “San Jose has the best Tesla service center! They go well beyond what is expected, addressing issues other service centers could not. I had previously gone to Fremont and Sunnyvale Service Centers and had horrible experiences: my brand new Model S with 100 miles on it was at those two centers for two months; they just couldn’t get it right. More than that, communication was horrible. But the techs and service staff at San Jose are great. They fixed an issue with my Model 3 driver’s seat in about 45 minutes.”

Living in Ithaca, NY, Nathanael Nerode has also had mixed results. A Tesla owner since 2013, Mr. Nerode would have to drive five hours to get to his nearest Tesla service center. Fortunately, Nerode purchased an “unlimited” Ranger Service plan (which is no longer offered) when he bought his first Tesla. With the Ranger service, Tesla techs come to you to perform any necessary service. But even that is no magic bullet. “Until recently, service communications have been appalling. I’ve spent hours on the phone having to repeat my story to each new person. And then when the tech arrives, I have to explain it all over again. But those techs that do arrive have been great, at least for hardware issues. Every time I’ve had a hardware problem, it has been fixed permanently with an upgraded, improved hardware component. But software issues are a different story.”

Tesla’s Ranger service will come to your home or place of business to perform routine maintenance or repairs.

According to Nerode, Tesla’s integrated media player — the software used to play digital music from a USB thumb drive — leaves a lot to be desired. There’s a 92-page discussion about this on the Tesla Motors Club forum. After two and a half years, things have only gotten worse. Not better. Nerode has tried everything he can to get these software bugs fixed, including “executive escalation” … twice. But these requests appear to be falling on deaf ears. I, myself, have noted multiple audio glitches when listening to streaming media on my Model 3. I had been hoping that a software upgrade would make things better, but the glitches remain a year after my initial purchase.

“If something ‘non-critical’ is broken in software, you are screwed,” says Nerode. “They never fix software bugs. They just break stuff in the new releases. I would consider switching from the USB player to Bluetooth, but Tesla is still using a lower quality ancient version of Bluetooth that really isn’t conducive to music playback.”

My own experience at the Brooklyn, NY, service center has been less than positive. My first Tesla Model 3 needed to have its touchscreen replaced. It had been randomly responding to phantom touches, which caused the navigation system to shut itself off repeatedly and the audio system volume to randomly turn itself up or down. On one occasion, this happened while I was double-parked and out of the vehicle, causing permanent damage to the sound system. Replacing the screen only took about a week, as the service center was able to source the part locally. But the service rep said they were unable to reproduce the audio problem, so they didn’t repair it. Meanwhile, I experienced the issue again 10 minutes after leaving. I did not return to have the issue addressed, as this particular service center is inconvenient for me to get to. I just lived with the low-quality audio until I traded the Model 3 Rear Wheel Drive in for a Model 3 Performance.

That Model 3 Performance has had its own issues. While in Autopilot mode, the car won’t reliably change lanes. Sometimes, when I signal to the right, the car begins the lane change, then goes back into its original lane. After that stutter, the car sometimes stays in its original lane or it tries again and completes the lane change via a second attempt. Not only does this make me look to other drivers like a drunken fool, it also sort of undermines my faith in the Autopilot system. During a recent long-distance trip, I saw this failed lane change happen for about a third of the attempted lane changes, but only when changing lanes to the right, never to the left. I captured a couple of these failed lane change attempts via the built-in dash cam, and noted the date/time of the occurrences. You can see what this looks like in the video below.

Also, when I was negotiating out of a really tight parking space, I struck a 1-foot-wide pole in reverse with my Model 3 at very low speed. I thought it looked a bit close, but the proximity sensor said I was still at least 12 inches away. My mistake: I trusted the sensor instead of my eyes. I had hoped that the service center would find some flaw in the hardware and/or software, that they would repair the damage and the sensors and I’d be back up and running quickly. But this was not the case.

Need Tesla service in Paramus, NJ? Better be patient. On March 7th, the earliest availability for a service appointment there was nearly two months out, on May 2nd.

The earliest appointment I could get for the Tesla service center in Brooklyn to see the car was more than two weeks out. Checking online now, some of the service centers in the New York City area now have over a two month delay in scheduling basic service. The service center had the car for about 4 or 5 days, said that it found no fault in the proximity sensors (“working normally”) and that it could not reproduce the Autopilot lane change problem. So, they asked me to come and pick up the car immediately. I suggested that they try again to reproduce the lane change problem, as..

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Tesla Referral Program Revived — Chances To Win Founder’s Series Tesla Model Y & New Roadster

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Published on March 21st, 2019 |

by Zachary Shahan

Tesla Referral Program Revived — Chances To Win Founder’s Series Tesla Model Y & New Roadster

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March 21st, 2019 by Zachary Shahan

Tesla has revived its referral program. The new program, as stated on Tesla’s website support page, is as follows:

You and whoever you refer each get 1,000 miles of free Supercharging when they purchase a new Tesla. Each referral also gives you a chance to win a Founders Series Model Y monthly and Founders Series Roadster supercar quarterly, both signed by Elon & Franz. Tesla owners who already have free Supercharging get two chances per referral.

Tesla makes the safest cars in the world, according to US government testing, so every referral also helps reduce the probability of injury or death.

Thank you for helping to accelerate the world’s transition to sustainable energy.

Below is also a Tesla blog post about the new version of the program. We’ll be writing about the program more in a few hours, but while the news is fresh, here’s Tesla’s take on it.

Tesla’s New Customer Referral Program
Customer referrals have been a key part of our growth ever since we began selling Roadster in 2008. Since then, our customers’ enthusiasm for their vehicles has propelled Model 3 to become the best-selling luxury car in the U.S. and the best-selling electric vehicle in the world last year. We’ve heard from our customers that the Referral Program was one of their favorite reasons to tell their friends about Tesla, so today, we’re introducing an all-new Referral Program to give customers another way to share what they love about their cars.

While our previous Referral Program was very successful, it came with significant costs, and ending the program last year allowed us to pass those savings along to customers. We’ve since restructured the program to save the company money while also offering rewards that are super exclusive:

Now, each time a friend purchases a new Tesla using your referral code, you’ll both get 1,000 miles of free Supercharging. Each referral also gives you a chance to win a Founder’s Series Model Y monthly and a Founder’s series Roadster supercar quarterly, both signed by Elon Musk and Franz von Holzhausen. Tesla owners who already have unlimited Supercharging get two chances to win with each referral.

The continued growth and excitement we’ve generated have been driven largely by the passion of our current and future customers. Our goal is simply to build the best and safest cars according to U.S. government testing, so that owners will share their experiences with others and help accelerate our mission towards a sustainable future.

About the Author

Zachary Shahan Zach is tryin' to help society help itself (and other species). He spends most of his time here on CleanTechnica as its director and chief editor. He's also the president of Important Media and the director/founder of EV Obsession and Solar Love. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, and Canada.

Zach has long-term investments in TSLA, FSLR, SPWR, SEDG, & ABB — after years of covering solar and EVs, he simply has a lot of faith in these particular companies and feels like they are good cleantech companies to invest in. But he offers no professional investment advice and would rather not be responsible for you losing money, so don't jump to conclusions.

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Tesla drops annual servicing for ‘as needed’ repair model

ASSOCIATED PRESS Tesla has quietly changed its EV maintenance policy, going from regularly scheduled service to an “as-needed” model, according to its “Car Maintenance” page. Before, it called for “recommended” service every 12 months and 12,500 for the Model S and X, and 24 months or 25,000 miles for the Model 3. Now, however, it… Continue reading Tesla drops annual servicing for ‘as needed’ repair model

Tesla Gigafactory employees lined up for ‘Merch Madness,’ a chance to buy company swag on the cheap

Andrew Evers | CNBC
Tesla employees at the company's Nevada Gigafactory line up to buy discounted company merchandise in March 2019.

Tesla set up a pop-up shop just for employees at its Nevada Gigafactory this week, and sold them company swag on the cheap during a series of events it called “Merch Madness.”

The stunt helped boost employee morale during a stressful end-of-quarter push, which followed company-wide layoffs and store closures.

CNBC visited the sprawling battery plant during “Merch Madness” and observed lines to rival the opening day of a new “Star Wars” sequel.

Andrew Evers | CNBC
A screen in Tesla's Gigafactory advertising “Merch Madness,” a chance for employees to buy discounted company swag.

Among the items in the employee-only shop were:

A “Tesla Corporate Jacket,” which Tesla sells on its website for $175, but cost employees just $48 during the eventTesla caps that sell for around $30 at retail, but cost employees $6Items not currently available online, including a Semi Truck tee for $9, leather Corsicana tote bag for $102 and leather touchscreen gloves for $28.

Employees told CNBC they were stocking up on gear they wanted as well as gifts for family and friends. The company store took credit cards only. They get an employee discount year-round but the Merch Madness deals went beyond that, they said, so waiting on line was worth it.

In February 2019, Tesla set up a store to sell its branded apparel and accessories on Amazon.

Increased attention to branded merchandise at Tesla follows success in this arena for another Elon Musk business — The Boring Company sold $10 million worth of its “not-a-flamethrowers” in five days last year, and $1 million in baseball caps.

A spokesperson said that as of the week of March 4, Tesla employed more than 40,000 people. In its 2018 annual report, Tesla said it had 48,817 employees. Tesla has not disclosed exactly how many people it has laid off this year.

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Tesla brings back its referral program, sort of

NurPhoto | NurPhoto | Getty Images

Tesla is bringing back its once popular referral program in a new form just months after killing it, the company said.

But the program will be different from its previous incarnation, which Tesla said was too costly to keep up.

For every customer a Tesla owner refers, the company will give both people 1,000 miles of free use of its Supercharger charging network and will enter the referrer into drawings for a special edition of the Model Y crossover monthly and second generation Tesla Roadster quarterly, each signed by Tesla CEO Elon Musk and Chief Designer Franz Von Holshauzen.

“While our previous Referral Program was very successful, it came with significant costs, and ending the program last year allowed us to pass those savings along to customers,” Tesla said in a blog post Thursday night. “We've since restructured the program to save the company money while also offering rewards that are super exclusive.”

The program is not quite as fat with incentives as its forebears. The previous version of the program gave owners six months of free Supercharging with the purchase of a Model X SUV, Model S sedan or Model 3 midsize sedan.

The previous program also gave referrers a chance to win a variety of awards, including having a photo launched into space, new wheels, priority access to software updates and vehicles.

An even earlier version of the program offered some buyers free unlimited Supercharging. The new program gives those participants in the program a two chances to win a new vehicles in each period.

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