Tesla Service Centers

[gg_got_a_tesla]

Good points all, Robert. But, by hiring the right folks locally and making them stay attuned to local needs, Tesla can pull this off even with their central ownership model. After all, Starbucks has managed to pull this off the world over without any franchising!

I'm not sure if and when Tesla will reach the tipping point but, in my opinion, Tesla can and should stay with their current store model (a la Apple) for the next 4-5 years. I know I'm in Tesla's backyard and don't have much to worry about vis-a-vis stores and service, but, I've never really been thrilled with independent car dealerships (across 4 brands) who don't necessarily project the same image and level of service that the manufacturer intends to.

 

[Robert.Boston]

If my post created any ambiguity, I think Tesla's direct-ownership approach is absolutely the right model. There are at least as many problems with maintaining a common culture and customer experience in a dealership approach. Dealerships arose in a very different time of retailing, along with department stores. Apple doesn't franchise; neither should Tesla.

(btw, Starbucks does franchise, but indirectly, allowing other restaurants to use the Starbucks product and name.)

 

[BYT_P1837]

I know I'm in Tesla's backyard and don't have much to worry about vis-a-vis stores and service....

Being in Newark you are in their front yard... I like the Apple comparison as well, nothing wrong with emulating a winner, and Tesla can get their in time. Ford has been around for 100 years!

Tesla Motors can take a few extra years to get it all right
and then put out a car that will be out of sight
and hopefully one day the environment will also be bright
before it all blows up like dynamite!

Had a rare moment of creativity there, don't worry, I'm not quitting my day job!

 

[daniel]

From a corporate finance perspective, why should a publicly traded firm have more difficulty raising capital to build a dealership than a local businessman?

Because a local businessman may have a personal relationship with his bank. He may have collateral which makes the loan very low risk for the bank. He may already own and run a car dealership so his only additional capital investment is car-specific diagnostic equipment and technician training.

And because there's a qualitative difference between an established local business asking a local bank for an expansion loan, and a start-up company asking the capital markets for enough money to open a thousand stores nation-wide.

I agree that Tesla's model has all the advantages mentioned. I just don't see how it can lead to the kind of ubiquitous sales and service presence that all the major car brands have. I lived in Fargo when I bought my Prius. Toyota never would have had a dealership in Fargo were it not for a model that allowed independent businesses (owned by people who already lived there) to open dealerships. Someone commented above that I should not expect a service center in Spokane. But without that, they'll never sell a mass-market EV to the people who live here. There's a Nissan dealership about 3 or 4 miles from me, another on the north side of town, and another in a small town not far away. Tesla will not be able to compete with Nissan in the $30K and below price bracket in Spokane without a sales and service center here, and the same goes for every other city that is not targeted for a store.

Maybe this goes in the "Challenges for Tesla" thread, but establishing a national and global distribution and service network is necessary to becoming a mainstream auto maker, and that's a challenge of no small importance.

 

[jerry33]

I can take my Prius in for service and the dealership gives me a ride home, and then picks me up later in the day.

That is certainly not the normal modus operandi for Toyota dealer around here. If you want to wait 45 minutes they may rent you a car--if they have one available. It's generally less trouble just to wait for the service to complete.

With the Roadster, I have to pay a lot of money to have a ranger come to my city. I accepted that because I wanted the car so badly. But would a potential Bluestar buyer feel the same?

Hopefully by the time Bluestar is out there will be a lot more Tesla stores so that Ranger visits will be less common and less expensive.

 

[Warrenbonz]

I agree that this will be an important challenge for Tesla to overcome.
Since Tesla is selling major components to Mercedes and Toyota I could imagine a scenario where Tesla vehicles are being serviced at Mercedes and Toyoya dealerships in areas far away from Tesla service centers. Anyone think this is possible/likely?

 

[smoothoperator]

I agree that this will be an important challenge for Tesla to overcome.
Since Tesla is selling major components to Mercedes and Toyota I could imagine a scenario where Tesla vehicles are being serviced at Mercedes and Toyoya dealerships in areas far away from Tesla service centers. Anyone think this is possible/likely?

this is unlikely, supposedly Elon Musk does not want the "Tesla Experience" to be diminished by normal car dealerships/service centers.

 

[Robert.Boston]

Since Tesla is selling major components to Mercedes and Toyota I could imagine a scenario where Tesla vehicles are being serviced at Mercedes and Toyoya dealerships in areas far away from Tesla service centers. Anyone think this is possible/likely?

Frankly, no. The core systems are so far removed from the MB/Toyota lines that the technicians won't have a clue what to do in most circumstances.

 

[gg_got_a_tesla]

Frankly, no. The core systems are so far removed from the MB/Toyota lines that the technicians won't have a clue what to do in most circumstances.

And, we've heard someone say that their Prius was being serviced by someone who had no clue how to start the car or some such thing at a Toyota dealership! No, thank you!

 

[Warrenbonz]

Frankly, no. The core systems are so far removed from the MB/Toyota lines that the technicians won't have a clue what to do in most circumstances.

Toyota and Mercedes techs will need to be trained to work on their upcoming electric vehicles that utilze Tesla powertrane so I think it is pretty likely that a Mercedes tech trained to service an electric Mercedes with a Tesla powertrane would be technically capable of handling some Tesla vehicle service issues. As far as the Tesla experience goes, if given a choice, I can't imagine people that live far away from a Tesla service facility (ie. Alaska) opting to pay several thousand dollars on top of the normal fee for an annual service versus saving the money and "suffering" through a Mercedes imitation of the Tesla experience . Seems like a service arrangement with Mercedes/Toyota would be a win/win to me. Mercedes/Toyota could generate additional income from thier investment in training and equipment to service the few electric vehicles they initially sell and Tesla solves a major challenge to going mass market. I hope Tesla gives this idea serious consideration. My hunch is that they are already considering something like this but would never publicize it until the deal became final.

 

[daniel]

That is certainly not the normal modus operandi for Toyota dealer around here. If you want to wait 45 minutes they may rent you a car--if they have one available. It's generally less trouble just to wait for the service to complete.

Even if I had to take a cab home and back, that's better than having a seven-hour drive there, and another 7-hour drive back after spending the night in a hotel. But the Toyota dealer where I bought my Prius in Fargo, and the one I go to now, both offer a "courtesy car." I.e. a van that takes customers out and back.

Hopefully by the time Bluestar is out there will be a lot more Tesla stores so that Ranger visits will be less common and less expensive.

Presumably there will be more. I cannot imagine there being the kind of coverage needed to provide convenient service to the whole country.

this is unlikely, supposedly Elon Musk does not want the "Tesla Experience" to be diminished by normal car dealerships/service centers.

The "Tesla Experience" is very greatly diminished if service requires a two-day trip with 8 total hours of total driving plus 6 hours of charging on the road if you're lucky enough to find a charger available when you need it. And the "Tesla Experience" will cost more than $30,000 car buyers are willing to spend if a service tech has to drive 4 hours each way, over roads that are hazardous in winter, and stay overnight in a hotel, and perform his work with the tools he can carry in a service van.

And, we've heard someone say that their Prius was being serviced by someone who had no clue how to start the car or some such thing at a Toyota dealership! No, thank you!

Every car brand has stories about incompetent service techs. The people who service my Prius seem extremely knowledgeable, as did the people where I bought it.

I cannot comment on what Elon Musk's intentions are, But I think that once Tesla starts selling cars that compete with the Leaf, local service will be necessary. That means Tesla either finds the investment capital to open a service center in every small and medium size city, and more than one in major cities, or it works with another company to supply service through existing dealerships, or it writes off a significant percentage of the population as potential customers.

As an EV fanatic and early adopter, I was and am willing to accept the expensive and inconvenient service arrangement for my Roadster. I do not believe a Bluestar buyer will feel the same.

 

[MarkR]

It's nice to see new locations for sales and service, but is there any word on the timing for new locations?

 

[roblab]

As a past EV owner (RAV4EV), I keep feeling that all this concern over "service" is a bit overdone. Most folks are used to ICEs, and those need service. This includes hybrids. My EV got serviced twice in 6 years. It was not an emergency requiring driving in inclement weather. Both times there was nothing for the dealer to do (rotate tires, or add an unnecessary amount of refrigerant).
Since Tesla has the ability to upload data from the car, there is even less need to go to a service center. Of course, the inexperienced, non EV driver will continue to sweat over lack of service centers, citing needs for computers or phones or other electrical devices as proof that service will be required. I say, tell me the last time your refrigerator needed service, or your TV. Not common.
OH WELL.

 

[gg_got_a_tesla]

As a past EV owner (RAV4EV), I keep feeling that all this concern over "service" is a bit overdone. Most folks are used to ICEs, and those need service. This includes hybrids. My EV got serviced twice in 6 years. It was not an emergency requiring driving in inclement weather. Both times there was nothing for the dealer to do (rotate tires, or add an unnecessary amount of refrigerant).
Since Tesla has the ability to upload data from the car, there is even less need to go to a service center. Of course, the inexperienced, non EV driver will continue to sweat over lack of service centers, citing needs for computers or phones or other electrical devices as proof that service will be required. I say, tell me the last time your refrigerator needed service, or your TV. Not common.
OH WELL.

I think one issue is that Tesla seems to be insisting on a scheduled annual service, come what may, and that, if one were not to get that done, they may risk voiding the warranty!

 

[neroden]

\ I say, tell me the last time your refrigerator needed service, or your TV. Not common.

Actually, my family has had a lot of refrigerator service calls (icemakers are finicky). TVs, people just throw out and replace when they break.

I think part of the concern is that the Model S doesn't actually have a track record yet (so nobody knows if there's going to be something with recurring problems, such as with certain brands of icemaker), while part of the concern is that cars get beaten on pretty hard -- you'll still have to check the alignment of the Model S intermittently, for instance. And, yes, part is Tesla's intention that people should have an annual service.

 

[daniel]

As a past EV owner (RAV4EV), I keep feeling that all this concern over "service" is a bit overdone. Most folks are used to ICEs, and those need service. This includes hybrids. My EV got serviced twice in 6 years...

I think one issue is that Tesla seems to be insisting on a scheduled annual service...

EXACTLY!!!

The only service my Zap Xebra needed was a few shots of grease in the aftermarket front suspension once a year or so. But with a required annual service, , having the nearest service center a LONG day's drive away (or a good half-day for the ranger in her/his gas-burning service van) becomes an issue.

Again, I accept that for the Roadster. But between Bluestar and Leaf, local service could make the difference.

 

[neroden]

EXACTLY!!!

The only service my Zap Xebra needed was a few shots of grease in the aftermarket front suspension once a year or so. But with a required annual service, , having the nearest service center a LONG day's drive away (or a good half-day for the ranger in her/his gas-burning service van) becomes an issue.

Again, I accept that for the Roadster. But between Bluestar and Leaf, local service could make the difference.

Given the frequency of service, I don't think an enormous number of service centers are needed.... but a lot more are needed than are now planned! People around here are quite willing to drive to Rochester (2 hrs) or Scranton (2 1/2 hrs) once a year, and people who don't like the local car dealers may simply do so, but New York City (5-6 hours) is too much (especially 'cause the city traffic is horrible to drive in). I've noticed that the more rural areas are (Wyoming, for instance) the more willing people are to drive further, but you still need a certain level of coverage; there really needs to be a service center within roughly 2 hours drive of most of the country, though spacing could be larger in exceptionally depopulated areas like Wyoming and Alaska where people are used to car dealers being a long way away.

 

[MarkR]

Some very interesting information that one can glean from the Tesla Motors job search page. Here are some North American locations that load into the drop-down box for "Office Location":

• US-AZ-Scottsdale-Fashion Square-Store
• US-CA-San Carlos
• US-CA-San Diego-Fashion Valley-Store
• US-CA-San Rafael-Service
• US-CA-Santa Monica
• US-CO-Boulder
• US-GA-Atlanta-Store (Store Manager position is posted!)
• US-MA-Boston-Store
• US-MA-Michigan
• US-NY-White Plains-Westchester Ave-Store
• US-OK-Oklahoma-Service
• US-PA-King of Prussia-Store
• US-TN-Tennessee
• US-TX-Dallas-North Park-Store
• Canada-Montreal-Store
• Canada-Toronto-Store
• Canada-Vancouver-Robson St-Store
• Orange County

I would like to think that Model S service needs will be minimal, but the fact that The "locations" list from TMC has five times as many stores as service locations has me questioning if service will be a priority. Phoenix is a looooong way from the nearest service in California.

 

[Doug_G]

I would like to think that Model S service needs will be minimal, but the fact that The "locations" list from TMC has five times as many stores as service locations has me questioning if service will be a priority. Phoenix is a looooong way from the nearest service in California.

I expect they just haven't announced the service locations yet. They are easier to find a suitable location for, and from what I have seen wouldn't take that long to set up, either. So it makes sense to focus on the stores first.

 

[Tempus]

was in the DC store today, and while chatting with one of the Tesla employees there, I heard that they are going to have a service center (and possibly store as well, wasn't clear on this) in the Tyson's Corner, VA area, by the end of the year. For us northern virginia folks, this is great. I was not looking forward to having to go into DC for service. Tysons is MUCH more convenient.

Tempus