I think Tesla has us all snookered on this one. As has been pointed out, the "hardware upgrade" is not contained within the extended service contract at all. More importantly perhaps is that the operative phrase on the web page is "necessary" hardware upgrades, and nowhere is there any indication of what is meant by that. The Tesla lawyers could very well argue that "necessary" means existing components that need to be replaced (and "upgraded" to current spec if applicable) either under warranty, because of a defect, or pursuant to a safety recall that Tesla has agreed to with the government. There are really no other scenarios where hardware upgrades are "necessary", absent a more expanded definition contained in a contract somewhere. Looking at it this way, "necessary hardware upgrades" means nothing beyond what every other car maker provides to its customers.
The web page did not originally say "necessary", that was added later. Probably after one of the lawyer pointed out the potential problems.
Still, as you said, the contract it self has not mention of hardware upgrades, so they are probably "covered". I should have read the contract more carefully...
They already did, you got the service at a discounted rate and locked in against any service price changes. That's all the plan is.
+1. Tesla needs to come clean on service and define exactly what the terms of the service contract mean. Tire rotations? Everyone is getting that. Hardware upgrades? Same. Remote diagnostics? Same. All of these items are supposed to be exclusive to those who pay for service. Seems the only thing service gets us is new fob batteries and wiper blades.
No, the confusion for me lies in the false advertising of annual service. I paid for it because of "new features" (yes, that was in the original language on the web) and "hardware upgrades" neither of which have come to fruition.
ken830
Model S 85, Model 3 Performance
According to the website, it does not distinguish between the pay-as-you-go and the discounted plans in any way except for pricing. Even the $600 pay-as-you-go "plan" includes all of the same listed benefits. I still don't understand why those that prepaid are expecting anything more????
I never read that to be special to the prepaid version. Back when I bought it, you had 3 options: 1 year at a time, 4 year prepaid, 8 year prepaid. They were all service plans and so the wording applied to all of them, prepaid or not.
brianman
Burrito Founder
- Nov 10, 2011
- 17,515
- 2,980
Quoted for context, not to agree or disagree.
I haven't looked at the website recently, so here's what I see now.
Tesla Service | Tesla Motors
It sure seems like the hardware upgrades are made available as part of the annual, with the plan just being a way to get a discounted price for prepaying.
Also of note:
When I purchased, they offered the "ANYWHERE" flavor for an additional fee. They also offered (and later discontinued but continue to honor) the "TIRE AND WHEEL REPLACEMENT PROGRAM".
Oddly the PDF linked from MY TESLA doesn't speak to the "ANYWHERE" part of the plan at all.
Once again, I really wish WA/FL would allow us to get the extended warranty. Then I'd feel like I have full right to expect red carpet treatment (Sig with every plan they offered).
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@ken, @ckessel, @brianman - Right, I think that people who cough up the $600 should get the same as those who prepaid (provided that the terms of Tesla Service never change). But the fact of the matter still stands - nobody (prepaid or a la carte) is getting hardware upgrades or anything else mentioned aside from new fob batteries and windshield wipers.
I have an example of an upgrade that happened on mine : one of the handles stopped extending a few days before my annual service. So they changed all 4 because there was a newer design less prone to such failures.
They could have stopped at just the broken one. But with this little preventive care, I was happy to pay the 600$...
I never expected them to upgrade my 60 to a P85D, when it becomes available ....
This is a warranty replacement. My dome like was not working on the driver side, and they replaced all to Gen 2 Dome lights under warranty. I did not have the service plan.
No one else builds cars that are able to take major future hardware upgrades. Look at any other car company. You can't walk into the service department and get a major 2015 feature added to a 2014 car. And if you order a 2015 car, some options are factory only. If you've taken delivery and change your mind, it's too late.
That tells me that it's hard to do it in a way that makes business sense for both the customer base and the business. I think this is one of things where Elon wanted to do better but ran into reality. So we and Tesla are just going to have settle for mostly software upgrades. And the TSBs. A lot of the TSBs seem to me to be minor hardware upgrades to bring older cars up to spec with new production where it's cost-feasible.
They've changed/added a lot of parts in my car. The only visible change was 1st to 2nd generation handles. Everything else was stuff I wouldn't have known about that they did anyway to bring the car up to current specs.
That tells me that it's hard to do it in a way that makes business sense for both the customer base and the business. I think this is one of things where Elon wanted to do better but ran into reality. So we and Tesla are just going to have settle for mostly software upgrades. And the TSBs. A lot of the TSBs seem to me to be minor hardware upgrades to bring older cars up to spec with new production where it's cost-feasible.
They've changed/added a lot of parts in my car. The only visible change was 1st to 2nd generation handles. Everything else was stuff I wouldn't have known about that they did anyway to bring the car up to current specs.
That's all well and good, but it doesn't change the fact that we purchased a service agreement based on terms that Tesla had no plans of delivering on. In return, I think it only fair that they partially refund service plan patrons or offer something in return (ie. no labor costs on part upgrades as others have suggested). Elon has admitted before that $600 for "no service" is kinda absurd. Someone just needs to get around to doing something about it.
HankLloydRight
No Roads
Elon also said that service wasn't going to be a profit center.. so even at $475 per annual inspection, is that at-cost?
At-cost? For two new fob batteries and a windshield wiper? $475? I think not. People who aren't forking over $475 or $600 seem to be getting the same things except those mentioned. I see not other difference.
HankLloydRight
No Roads
Uh, there is a cost for labor time to inspect the car. If it takes 2 people 2 hours to do a full inspection @$100/hour, that's already $400. Plus overhead for rent, admin, utilities, etc. The cost isn't just a battery and wipers. Please.
What I was asking, if taking in all the costs, is $475 still at break-even or are they actually making a profit?
What I was asking, if taking in all the costs, is $475 still at break-even or are they actually making a profit?
We've had two routine service checks for our almost 2 yr. old Model S and they do really spend 6 hours going over the car. I've no request to pay for anything even things that really should be wear and tear on the car. They've been incredible to date.
Disagree. People who bring their cars in and do not pay for annual service still get a courtesy inspection. Furthermore, on my previous visit to the SvC the inspection was listed as goodwill under payment type. And I have the plan. So what gives?
People that pay for the annual service are subsidizing that cost, then. Like a traditional mechanic's 100 point inspection, it's free and the hope is that htey find something they can fix to cover the time/cost of the free inspection.
It's either that or Tesla stops doing goodwill inspections because they see that they are operating at a loss.
