Service costs

[mrmemo]

I was told Tesla doesn't make a profit on service. If true why do they charge $700 for a routine 25k service?

 

[WATTS-UP]

All car dealers including Tesla make a profit on service. They are not in business to lose money. The only difference is that your local garage
does not ( maybe can not ) service an electric.

 

[neroden]

Fixed costs, for starters. When they say they "don't make a profit on service", they're including as costs all the salaries of the salaried employees, the rent on the buildings, the cost of the test equipment, etc. etc.

 

[mrmemo]

All car dealers including Tesla make a profit on service. They are not in business to lose money. The only difference is that your local garage
does not ( maybe can not ) service an electric.

So why claim to not make a profit ??? What do they do for my 700???

 

[WATTS-UP]

Who is claiming not to make a profit?

 

[mrmemo]

Fixed costs, for starters. When they say they "don't make a profit on service", they're including as costs all the salaries of the salaried employees, the rent on the buildings, the cost of the test equipment, etc. etc.

Fixed costs, for starters. When they say they "don't make a profit on service", they're including as costs all the salaries of the salaried employees, the rent on the buildings, the cost of the test equipment,

Who is claiming not to make a profit?

Tesla. That was one of their early claims. Guess you missed that

 

[mrmemo]

Tesla. That was one of their early claims. Guess you missed that[/QUOj Even if they didn't make that claim. What could possibly cost $700 ????

 

[jaguar36]

The "no profit on service" comes straight from Elon's mouth. However, like with many other things that he says, they haven't really come to pass. Tesla is clearly making a mint off the ridiculously high prices on the annual service, particularly in areas with lower mechanic rates than in LA. However they may still be losing money on the service centers because they are rolling the giant piles of profit from the annual service in with the massive losses from warranty service.

 

[mrmemo]

Thanks for your reply. You are the only one who has answered with the memory of this claim (thought I could have dreamt it). I have had no warranty issues unless you count the seatbelt that I ignored until tomorrow's service.

 

[WATTS-UP]

@mrmemo

Do you really believe that?

 

[Bubbletips]

Elon did say that the service centers are not there to make a profit. He may mean that in spirit, but I don't take his word literally as he hasn't kept all his promises. I have a earlier model s and it is supposed to store music but at never evoked. I have music storage with a usb drive. Not a big deal. I am still a big tesla fan of there cars. Still very satisfied.

 

[SureValla]

I was told Tesla doesn't make a profit on service. If true why do they charge $700 for a routine 25k service?

take a look at my post here: Costs of Ownership & Rebate
I think the costs of maintenance are beyond ridiculous as well