General Discussion: 2018 Investor Roundtable

[Curt Renz]

The lack of Service Centers will bite Tesla in the butt when competitors offer EVs and sell/support them through the dealer networks. Building all the needed Centers will be a very expensive proposition (that I don't see mentioned when people talk of profitability).

The established automakers do not profit from the service departments of their franchised dealerships. In fact, they must pay their dealerships ridiculously inflated amounts for warranty repairs. The situation is quite different for Tesla.

In the case of Tesla, investing in service centers and rangers should be beneficial in attracting customers, even if not direct additions to profits. Break-even for the accounting would be good enough. Right now there is little need to boost demand, but continued growth in service centers and rangers must be long-term considerations to entice new customers.

 

[Causalien]

Target $500 time frame 2 years. Go

 

[Menifeer]

...
In the case of Tesla, investing in service centers and rangers should be beneficial in attracting customers, even if not direct additions to profits.

Agreed. A lot of Centers will have to be built around the world and that won't come cheap. Since EVs require little maintenance, they likely won't have a lot of customers or profit. The rangers are a stop-gap solution (and I expect they're costly to maintain).

 

[kbM3]

Model 3 wins "design of the year" from Automobile Mag
2018 Design of the Year: Tesla Model 3 | Automobile Magazine

My favorite section:
—————————
For several years now I’ve said the Tesla Model S is the best sedan I’ve ever driven. That’s no longer true. It’s not that I found recent Mercedes-Benz S-Class or Rolls-Royce sedans superior. Rather, I’ve done a few miles in the Model 3, which now holds the title of best four-door I’ve ever driven.
—————————

Wow. Prefers Model 3 to S class and Rolls. Wow.!!!!!!!!

 

[bdy0627]

Target $500 time frame 2 years. Go

Funny post! I don't disagree though, just kinda out of nowhere.

 

[Dennisj00]

Agreed. A lot of Centers will have to be built around the world and that won't come cheap. Since EVs require little maintenance, they likely won't have a lot of customers or profit. The rangers are a stop-gap solution (and I expect they're costly to maintain).

I had an Excellent experience with a ranger that did the parking brake recall in my driveway. A mechanic in a van (soon to be a Tesla) may be slightly less productive because of travel time but he indicated he had 5 or 6 to do that day.

Certainly a better experience than driving to the OEM dealer and getting the service manager spiel telling you that your car needs another $1500 in service.

Two years ago while buying my Leased Leaf as a stop-gap waiting on the M3 (and later S purchase), the salesman admitted Leaf sales tanked when the M3 was announced and they couldn’t support the dealer on EV maintenance (or lack of!)

 

[mongo]

The rangers are a stop-gap solution (and I expect they're costly to maintain).

How is a mechanic in a truck more costly than a mechanic at a building with enough space for an additional vehicle?
200 sq ft * $10 sq ft = 2k a year just for floor space. Then add loaner vehicle costs to that and you've more than offset the cost of the mobile service vehicle. One ranger can do 5 service appointments in a day vs having 5 sets of people come to SC, get checked in, get loaners, leave, come back, and get checked out. Plus, way more convenient for the owner. See also: mobile windshield/ glass repair.

 

[Reciprocity]

Bad fade at the end, but there is always this to look forward to:

Tesla’s roaring start to 2018 is costing short sellers $1 billion

 

[Skryll]

Tesla's plan is to use Mobile Service (Rangers) for all things that do not require a lift.
Details here

I had one of those visit me at my parking spot in SF to replace a spare tire that their roadside service had put on to get me going with the real replacement tire. He had a keurig machine and got me a black tea while chatting while uploading the forms and the tire was swapped out, balanced and pressure made the same on all four within 15 to 20 minutes tops. Super smart guy too.

 

[roblab]

The lack of Service Centers will bite Tesla in the butt when competitors offer EVs and sell/support them through the dealer networks. Building all the needed Centers will be a very expensive proposition (that I don't see mentioned when people talk of profitability).

I'd like to point out that there is a lack of needed service. That may be why there are not so many "needed" service centers. What "service" is it you think I need? Oil change? I buy my tires from Wheel Works and they do the free repairs, alignment and realignments. I do need wipers some time; going on two and a half years on originals. Dang, wish I had a service center when I need it.

 

[aubreymcfato]

Best bit from Franz von Holzhausen's interview:

«From initial sketches to production launch was about two years.»

I'm no expert, but I bet other automakers err on the 5+ years.
If Tesla can keep this pace, I'm sleeping well for the next few years.

 

[roblab]

Yes, put service centers "where" sales are. But if all your stores are in one area, and people in the rest of the state buy/test drive/etc cars there because they have no other options, then "where" your sales are is not the same as "where" you stores are. It's one thing to put up with a trip to go buy a car (many do this already with traditional OEMs, simply because they're cross shopping multiple dealerships looking for the best deal), another to do so for service. And yes, these people could simply order online, and maybe they aren't ordering online anywhere but Long Island so that's the only place getting new locations, but this may be a chicken and egg issue - if sales are lower where there are no service centers, perhaps they need to build some so that prospective buyers will actually purchase, as ease of servicing is a legitimate concern when buying a vehicle.

Like I say, "service" is over rated.

 

[Drumheller]

Service is needed mostly for warranty repairs. If Tesla can get the quality up on cars rolling off the line, Service will be used much less.

 

[Drumheller]

Model 3 wins "design of the year" from Automobile Mag
2018 Design of the Year: Tesla Model 3 | Automobile Magazine

Before an edit, the original version of that article contained a statement about the Model 3's HUD. I wonder if they actually drove a Model 3.

 

[NicoV]

Service is needed mostly for warranty repairs. If Tesla can get the quality up on cars rolling off the line, Service will be used much less.

Has Tesla published their regular service schedule for the Model 3 yet(I haven’t seen it)?

 

[MP3Mike]

Has Tesla published their regular service schedule for the Model 3 yet(I haven’t seen it)?

Just what is in the Manual:

• Rotate tires: every 6,250 miles
• Brake fluid replacement: every 2 years or 25,000 miles. (whichever comes first)
• Battery coolant replacement: every 4 years or 50,000 miles. (whichever comes first)

There is an interesting note: "Note: Any damage caused by opening the Battery coolant reservoir is excluded from the warranty." And later in the manual about checking the battery coolant level "Fluid Level Check DO NOT REMOVE THE FILLER CAP AND DO NOT ADD FLUID. Doing so can result in damage not covered by the warranty." (It says that the car will give you a warning if it is low.)

 

[NicoV]

Just what is in the Manual:

• Rotate tires: every 6,250 miles
• Brake fluid replacement: every 2 years or 25,000 miles. (whichever comes first)
• Battery coolant replacement: every 4 years or 50,000 miles. (whichever comes first)

There is an interesting note: "Note: Any damage caused by opening the Battery coolant reservoir is excluded from the warranty." And later in the manual about checking the battery coolant level "Fluid Level Check DO NOT REMOVE THE FILLER CAP AND DO NOT ADD FLUID. Doing so can result in damage not covered by the warranty." (It says that the car will give you a warning if it is low.)

Seems similar to the Model S then. I don’t do the tire rotation thing (I do summer/winter switch though), and did my first 40K km service recently (My local Tesla service guy said to at least let my Model S service each 40K km, which corresponds to the brake fluid/battery coolant intervals)

 

[22522]

My favorite section:
—————————
For several years now I’ve said the Tesla Model S is the best sedan I’ve ever driven. That’s no longer true. It’s not that I found recent Mercedes-Benz S-Class or Rolls-Royce sedans superior. Rather, I’ve done a few miles in the Model 3, which now holds the title of best four-door I’ve ever driven.
—————————

Wow. Prefers Model 3 to S class and Rolls. Wow.!!!!!!!!

Is this part true?

"You modulate the rate of retardation by the speed of lifting your foot, "

 

[woof]

Is this part true?

"You modulate the rate of retardation by the speed of lifting your foot, "

Kinda true. Normally you modulate rate of "retardation" (odd word for deceleration...but let's go with it) by letting up on the "go" pedal...and that's based on "distance/angle" the pedal moves, not the speed at which it moves. However, there is the case of totally removing the foot so the pedal springs back to initial position quickly. It appears the Model S/X (haven't driven the 3) treats that as "apply max regen faster"...it's hard to tell because the amount of max regen really depends on vehicle speed. But it makes some sense that removing the foot fully from the go pedal is a prelude to pressing hard on the brake, so slowing down quicker with full regen would be a logical response to that.

 

[Waiting4M3]

Agreed. A lot of Centers will have to be built around the world and that won't come cheap. Since EVs require little maintenance, they likely won't have a lot of customers or profit. The rangers are a stop-gap solution (and I expect they're costly to maintain).

I'm confused, are you saying that Rangers won't be enough for the service demand that won't be very high?