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Service Level Agreements between suppliers and Tesla (automotive)

Discussion in 'Tesla, Inc.' started by handigneefje, Feb 18, 2017.

  1. handigneefje

    handigneefje New Member

    Jan 16, 2017
    Dear fellow members,

    My first post and considering a MX driving around Amsterdam The Netherlands.

    I was wondering if there is any information about the Service Level Agreements (further: SLA) between the suppliers and Tesla automotive. I can imagine there is one on certain quality levels and delivery time but what about the length or duration the specific part must perform.

    So if after the warranty period of 4 years (The Netherlands), suppose the software of the FWD will fail? Or there is any hardware like problem after this period, for example on the FWD? Because it is such a complicated car, for me this a slight show stopper. Is there any opening to go directly to supplier when a major issue appears after the warranty period? Is there under USA law any obligation from Tesla to the owner of the car?

    I have heard horror stories of the first line production MX so any long term concern about quality is not that curious??
    Is there any warranty reservation on balance which I can connect to SLA's? Because Tesla's are also assembled in The Netherlands, are they technically Dutch cars or not?

    What is your opinion about this issue. (Yes I know a lot of concerns)

    Have a nice day from The Netherlands!
  2. Uncle Paul

    Uncle Paul Active Member

    Nov 1, 2013
    Canyon Lake,CA
    Not sure about the Netherlands, but in the State they have set up a series of authorized service centers to handle any warranty work during the first 4 years. After that, they will continue to provide service and maintenance, but of course will be customer pays.

    The number of service centers opened will determined by the number of vehicles sold, and geography.

    It would be unlikely for hardware component manufacturers to be able to work on these vehicles, due to the interconnected nature of these cars, but it is the intention of Tesla to provide a quality level of service anywhere in the world where Tesla's are sold.

    Tesla sources their individual components from all around the world.
  3. allanfridstrom

    Mar 1, 2017
    Frankfurt, Germany
    THIS SUPPLY AGREEMENT is entered into as of this first day of September, 2006 (the “Effective Date”) between
    (a) Tesla Motors, Inc., a Delaware corporation, with its principal place of business in San Carlos, California, U.S.A. and its subsidiaries in world wide locations, including Hethel, Norwich, Norfolk in the United Kingdom; and
    (b) [***], with its principal place of business in [***].
    The Parties agree as follows:
    1. Definitions.
    Unless defined additionally elsewhere in this Agreement, the following capitalized terms shall have the meanings specified below:
    (a) “Agreement” means (i) this Supply Agreement, (ii) all Attachments, and (iii) all Orders, as each may be amended from time to time.
    (b) “Attachment” means any document that is referenced in this Supply Agreement and attached hereto. All Attachments are deemed to be incorporated into this Agreement by this reference.
    (c) “Order” means an order for Items communicated pursuant to this Agreement by Tesla to Supplier via a purchase order whether in hardcopy or electronic form. All Orders are deemed to be incorporated into this Agreement by this reference.
    (d) “Internal Tesla Data” means planning data, product engineering or manufacturing data, information, forecasts, Specifications or Confidential Information that is stored, displayed, maintained or accessed on the Tesla Web Site or other Tesla internal databases or internal network servers or storages.
    (e) “Items” means, collectively either singular or plural, components, equipment, materials, subassemblies or other goods and related software and services specified in (i) Attachment 1, (ii) an Order; or (iii) a purchase order placed by Tesla with Supplier prior to the Effective Date and undelivered as of such date.
    (f) “Parties” means Tesla and Supplier.
    (g) “Specifications” means such drawings, designs, instructions, technical or performance requirements or other technical or commercial information relating to the design, development, manufacture, packaging and labeling, delivery, logistics, installation, assembly, testing and/or use of one or more Items.

    [***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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