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Warranty/Servicing - official Tesla responses (incl GeorgeB)

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Oh c'mon! I've made critical posts of Tesla. Yes, overall my experience has been extremely positive. And because of that, I've kept from posting my opinion at times - because there is always someone that accuses me of being just a Tesla fan girl. I was referring to the tangents we go off on, please don't turn my words into something else.
I would love to see any posts of yours that criticize Tesla. I read just about every post on here and have yet to see one. Can you post a link to one? Thanks
 
I am extremely disappointed in Tesla and George B's response, I expected some back tracking, and what I received was, "I know you won't like this." I firmly believe that paying an additional $600 a year is unacceptable. I generally love Tesla and what they are doing, but this has changed it all. To put this in perspective, I have a below 750 numbered car, a below 300 model X reservation and enough Tesla stock to sell and purchase my model S, I was a Kool-Aid drinker. I am now more than 80% sure I am dropping the X reservation, selling the stock and selling my model S after the new car fog clears from my head.

Any new car, even one at the bottom of the "best car in the world" chart, should not have anything go significantly wrong with it in the first 50K miles. None of the consumables, aside from oil changes, should need servicing on an ICE car in the first 25K of operation, and many will not in the first 50K. I expect an EV to be on par or better than an ICE. Tesla can spin this any way they want, but what I am paying $1200 for the first two years of this is windshield wipers and years 3 and 4 might have a few lost cost items, but $600 is still outrageous. If something goes wrong with the car it should be covered under the warranty, and since it is not, Tesla is effectively selling me a car with NO warranty. If I want one, I MUST pay to get one. This is exactly the tactic of the slimy car dealerships where they show me a “computer board” in the finance office and explain how fragile these things area. Replacing it once costs more than the extended warranty I would be stupid for not purchasing right there and then. This is a new car, I should not need to buy my warranty, and at these prices I have no conclusion to draw except that years 5+ are will be outrageous.

Tesla, do the right thing and include the service in the first 2 years, align years 3-4 with other EVs like the Volt or Leaf and reveal the numbers for years 5+ where it really matters so we can all know the true cost of the future we are buying.
 
(late to the show, sorry)

Thank you to George for being so thorough in the response. I'm very thankful for Tesla's plan to land a service center less than 7 miles from my home.

I've taken the comments from Joost and George into the developing FAQ (see sig for the link).
 
I also still think the maintenance is either needed too often or is too expensive. Although I appreciate George's post, it did not contain a lot more information. Especially I haven't learned anything other than reiterating on brakes, blades and tire alignment.

I attended roadster maintenance inspections and I think it is really scary how less you have to service. The hard part with the roadster is getting access to the parts and I hope this is much better/quicker with the Model S.
 
I am extremely disappointed in Tesla and George B's response, I expected some back tracking, and what I received was, "I know you won't like this." I firmly believe that paying an additional $600 a year is unacceptable. I generally love Tesla and what they are doing, but this has changed it all. To put this in perspective, I have a below 750 numbered car, a below 300 model X reservation and enough Tesla stock to sell and purchase my model S, I was a Kool-Aid drinker. I am now more than 80% sure I am dropping the X reservation, selling the stock and selling my model S after the new car fog clears from my head.

Any new car, even one at the bottom of the "best car in the world" chart, should not have anything go significantly wrong with it in the first 50K miles. None of the consumables, aside from oil changes, should need servicing on an ICE car in the first 25K of operation, and many will not in the first 50K. I expect an EV to be on par or better than an ICE. Tesla can spin this any way they want, but what I am paying $1200 for the first two years of this is windshield wipers and years 3 and 4 might have a few lost cost items, but $600 is still outrageous. If something goes wrong with the car it should be covered under the warranty, and since it is not, Tesla is effectively selling me a car with NO warranty. If I want one, I MUST pay to get one. This is exactly the tactic of the slimy car dealerships where they show me a “computer board” in the finance office and explain how fragile these things area. Replacing it once costs more than the extended warranty I would be stupid for not purchasing right there and then. This is a new car, I should not need to buy my warranty, and at these prices I have no conclusion to draw except that years 5+ are will be outrageous.

Tesla, do the right thing and include the service in the first 2 years, align years 3-4 with other EVs like the Volt or Leaf and reveal the numbers for years 5+ where it really matters so we can all know the true cost of the future we are buying.
While I don't share the outrage and will bite the bullet, I think your points are sound.

I'm a doctor and this sort of reminds me of the "comprehensive" medical care one sometime sees specialty centers advertise. They bring you in for a one day super check-up. They do a whole body CT, colonoscopy, tons of blood work with cancer screening tests, EKG, Chest xray, you see 4 specialists to check your eyes, skin, heart and everything else. They charge a huge amount of money for this "service". It all sounds good, they're making sure you don't have some obscure occult cancer that might be secretly lurking in your body.

The thing is, none of this is necessary and certainly not cost effective to find the one in a million cancer that a regular screening might have missed. None of it is scientifically proven beneficial (and maybe harmful in the case of the CT scan).

That seems to be what this annual/12.5k mile check-up is. Yes, brake fluid ages...but how much, maybe needing checked once every 50k miles? OK, make the 50k mile check-up cost $600 and change that fluid and change the brake pads (if even necessary then--with regen even that seems unlikely). Warranty the headlamps and other lights. I'd rather pay a fee for the wear items than have to pay the expensive annual insurance for windshield wipers--even top end cost me $40 a set and last a couple of years.

The bottom line, based admittedly on limited knowledge, is that there are VERY FEW items on an EV that are time dependent wear items--brake fluid, maybe the battery coolant? So give us a maintenance schedule with those 2-3 time dependent items (e.g. get your brake fluid changed every 4 years), The distance dependent items should be checked at appropriate distance intervals--PEM every 12.5k, alignment same?, etc. Charge appropriately for individual service. If we decide Tesla's charging too much for a wheel alignment we can use a local independent shop. Won't have much choice on the PEM and other EV specific components I guess, but at least it leaves the owner with the impression of some modicum of control and being part of the decision making process.

Some of us may pay the $600/yr and feel like we got more than our money's worth if we need new xenon head lamps and the AC system recharged and new brake pads that corroded prematurely. But others who drive very little and need none of that work done might have done just as well for $150 worth of work each year.

I know, it's a new model, a new idea...but clearly it's not sitting well with a lot of people right now and I think we're going to need a lot more convincing of the value we're getting for the money and I think the general public (particularly the automotive rags) are going to have a hay day with this:
"Key benefit of EVs not true--Maintenance costs higher than conventional cars"-- Car and Driver
 
I am not quite sure everybody understands what they are buying with the Model S. Sometimes I feel more than a few want all the positives that come with being a early adopter, but refuse the negatives.
We are buying a rather innovative product from a rookie in the car production business. They are selling a product that could hit it out of the ball park, but there is still a chance of failure. Tesla is walking a thin rope here without a safety net. If they screw up, they're dead. Simple!
Now how to minimalize the risk of making a fatal screw up?
-Avoid any handyman customer or Cooter messing with the car. They may have the best intentions, but if they screw up it will tarnish Tesla's reputation with consequences beyond Tesla's control. With a highly complex machine like Tesla Model S it is easy to over estimate one's qualifications. No Mercedes mechanic will put his paws on my Model S, leave alone Cooter.
- Tesla may have put many miles on the Alpha's and Beta's, but nothing compared with the big OEM's. We are in a way guinea pigs. There will be defects whether Elon likes it or not, but by taking a very close look at EVERY car every 12k mi or 1 year, faults may be caught in time and repaired in recalls or during regular service.
- More bad news. We are paying (partly) for the build up of Tesla's service network. Gen III owners may thank you later, but probably not.

What were the alternatives? Increase the service interval to 2 years or 25k mi. After 1.5 years or 20k mi some Model S's have a dramatic break down and guess who will be here at TMC crying foul again? It's like playing russian roulette without knowing if there is a round in the revolver. Everything could go just fine, but if you're wrong... You can check the gun after every time you pull the trigger or you could wait a little bit longer and take your chances. I am not saying chances are 1 in 6, but the consequences could be just as lethal.
Maybe Tesla should give you the option to ignore their recommendation and go for 2 years/25k mi. Just if something should go wrong between 12k and 25k mi it will be your dime.
I'd like to think a lot in this discussion is expectations. You may say Tesla did not inform you enough; maybe you have to ask yourself if you put enough thinking before buying a $100k electric car.
OK guys, shoot!
 
I'm going to consider the service cost similar to an insurance payment, where a relatively small sum covers anything that might happen (well, except me laying down rubber if I turn off traction control.)

So for the vast majority of people in the first year or two of ownership, sure, you aren't likely getting much value worth in consumable parts (wipers, etc) or worn out parts (brake pads, etc), but you are subsidizing whoever is driving around one day and her sunroof sticks in the open position in a thunderstorm and shorts out the 17" display from the torrential influx of water.

Given the punch list items and newness of nearly everything involved in the vehicle, I have no issues betting $2400 that over a 4 year period I may incur at least that much out-of-warranty expense if the vehicle isn't serviced.
 
I didn't reply to the original thread (mostly because by the time I'd click reply, another half a dozen posts would be up there!). But I did read all of it, and all of this one. We go through the same cycle.

Step 1. Tesla announce something that has some ambiguity
Step 2. A thread erupts and goes crazy nuts with speculation (and valid opinions)
Step 3. GeorgeB responds
Step 4. Everyone thanks GeorgeB
Step 5. The world keeps turning
Step 6. Return to step 1.

I'm not a Tesla fan boy. I admire a lot of what they're doing though. For me, if I choose to pay the service fee up-front, then I have to remove one of the options. That sucks, completely, but financially this is a stretch for me. But as many have said, it's not about the money. It's the principle. But even with that, I think we have to bear some things in mind, being early adopters:

1. A lot of this car is new. Proven technology, but bolted together, it's very very new. Tesla have to have a way to track defects, developing faults and failures, and fix those in other cars before they manifest. All manufacturers do this (not just automotive). I was part of this process for a large PC manufacture. It's taken very seriously, in some cases it can make or break the profit margin on a product line. As an early adopter, you kind of sign-up for this approach (maybe not knowingly, but still).

2. For me, I take a lot of peace-of-mind from having an all-inclusive warranty. I have it now on my Audi (it was free, but still...) and it's great. I'm at the point in my automotive life where I never want to be surprised by a $5k bill for something.

3. Communications is a no-win job. I do this to a much smaller extent in my company. Finding the right balance of fluff, facts, details and disclaimers is impossible when you have a broad audience. For that, I cut Tesla some slack on their blogs. I think they're doing a decent job. I frequently get accused of 'polishing the turd'. They don't do that (nor do I!). Sometimes they're almost too honest, sometimes they're too vague, but given time, the truth always works its way out, and generally, the vast majority of us are satisfied.

4. Tesla are still a small company. You only had to watch the delivery event on June 22 for proof of that. Compare that to an Apple launch. I think they're doing the best they can with limited resources. Given the choice between a patchy event, or a patchy car, I'd choose the former. It was nice to see them have mic level issues, I have those all the time at my events :)

All I'm saying is that on balance, I think they're doing a decent job with the resources they have, and the risk factors that, as a business, they have to manage. Some of us will only get a few hundred dollars worth of value from the service plan, others will get thousands. Tesla had to draw a line somewhere that made the service plan either cost-neutral or marginally profitably for them. Other car companies build that into the price of the car too, maybe Tesla did, and maybe, now they've actually built a few, realized things were a little off. Either way, as consumers we ultimately have the choice to walk away.

Having said all of that, I do agree that the people that laid down $40k 3 years ago could be thrown a bone or two, there's a lot of faith there.

Finally, I am not suggesting for one second that the opinions expressed on this forum are invalid. We are all entitled to air them. This is a great forum, and the fact that it acts as a self-governing 'heat-check' for George is awesome. He just has to check the 'What's New' button every now and then to see what's irking us, and what we're loving. Getting replies from someone at that level in the company is pretty special, and the fact that this forum can drive that kind of progression is a Very Good Thing.
 
While I don't share the outrage and will bite the bullet, I think your points are sound. I'm a doctor and this sort of reminds me of the "comprehensive" medical care one sometime sees specialty centers advertise.

I think that's an excellent analogy. An additional problem is that when that 1 in 10,000 patient comes up and has a problem, s/he will say that s/he should have had that full body scan, which would have picked up the lesion.

I am not quite sure everybody understands what they are buying with the Model S.

While this may be true, I think almost everyone here pretty much understands what they are getting with the Model S. We all know it's new technology and while the Roadster has succeeded, the Model S is different. It's more advanced. There may be a few (or many) problems as time unravels. I think we all get that.

What quite a number of people here are arguing has nothing to do with the fact that the Model S is new:
1. The pricing is high, and it does beg the question of what benefit it provides the owner that all renewables are renewed when in actuality, no modern car needs to have those renewables replaced every 12,000 miles. Battery inspection? Fine. Battery fluid? Fine. Electrical subsystem inspection and testing? Fine. I can buy that, but not at $600/y or every 12,000 miles. I can see why this upsets people. I find it annoying.
2. The pricing was announced long after many people locked in their orders. This is unfair. This is below the belt.
3. Pricing beyond 4 years is as of yet unannounced. Is it going to be $600/y? $800/y? $1000/y? Come in with any number, and if it is $600/y or greater, people will still have problems with it.
4. Tesla touted EV technology as being less expensive to maintain. This is not my interpretation of what was said; this is basically what they said. This new service plan is a complete contradiction of that earlier statement. Of course people are going to be upset over this announcement; they should!

This is the crux of the resentment as far as I see it.

Roadster = awesome
Model S = awesome
Model X = looks like a winner
Tesla Sales reps = nice, helpful, informed; good resources
George B = great liason
Tesla Corp = I have growing concerns about what they are doing. This announcement is shady to say the least.
 
My point is that Tesla is opening themselves up to FTC fines and/or other enforcement actions if they go ahead with what George is saying they will do.

Hi Ron,

Perhaps you're right, but from the webpage that you referenced:

Maintenance schedules vary by vehicle make, model and year; the best source of information about routine scheduled maintenance is your owner's manual.

I'm guessing that Tesla is able to definitively specify the nature of the routine scheduled maintenance necessary to maintain their warranty without the FTC saying they can't. So although some of the routine maintenance functions no doubt can be performed by others without an issue, other functions are going to require proprietary diagnostics. Is the FTC going to compel Tesla to reveal and provide others with the means of developing proprietary diagnostic equipment? If not, George and Tesla probably have nothing to worry about.

Larry
 
Tesla Corp = I have growing concerns about what they are doing. This announcement is shady to say the least.

So, all you´re upset about is timing? Do you feel this announcement should have been made before people locked in (I think that would have been fair) or is it price and interval? If it is the last one, what would be your suggestion and why would that be a good alternative or what makes you an authority in this matter?
 
Thank you George for such a detailed thoughtful clarification.

My only question is can I get one of those Loaners when I bring my Roadster in? :)

So lets say I bring my Model S in after 12.5K miles and it comes out in less than 30 minutes with a clean bill of health ...? Does this just become a $1000/hour inspection?....

I'd say yes. But by the same token if they found a problem and had your car for three days and replaced several $$ items you've now paid $10 for a $1000's worth of parts and labor.
 
My thought process is that Tesla desperately needs to see all cars on the road to track of unexpected defects and keep ahead of the game in case of a sudden need to recall for something obscure. They have a need to look at the cars, at least the first few years.

But to accomplish that they, in my mind, ended up using a stick ("service with us for $600 or else we void your warranty") instead of a carrot ("service with us, it's awesomely free the first two times and only $300 per visit after that - hey, we'll throw in loaner") so people will want to take their car there. (My favorite real-life example of the carrot version is the 50¢ hot dogs at IKEA - Ingvar Kamprad set a price point where he knew people would not NOT buy a hot dog, and made up for it with volume.)

I'm sure that in their mind, they thought they were using a carrot, just missed it on the price point. Who knows, maybe it was the guys with visors and calculators that wouldn't let George and Joost set the price point they really wanted. We'll never know...

But, here I am with a signed MVPA, and I signed it the day after they announced the service plan so I can't say I was duped. But I can sympathize with the voices saying they're nickel and diming it on this one. Speaking as a donkey, I like carrots more than sticks.
 
Bottom line is this.... Tesla is wanting $2,400 additional from EVERY SINGLE TESLA sold - likely to pad their profits - and they are doing this by holding their apparently generous 8 year warranty.

That will definitely add to their bottom line.

Not a happy camper here as this feels like a bait and switch. All this was announced AFTER I signed the MVPA a few weeks ago. Bait and switch, lack of full disclosure - rather they hadn't made up their decision at the time I signed.
 
I'd say yes. But by the same token if they found a problem and had your car for three days and replaced several $$ items you've now paid $10 for a $1000's worth of parts and labor.


If they find a problem that is WARRANTY not MAINTENANCE! Sure they are probably going to do a better job than my VW dealer looking at the car. But a lot of people are bringing up WARRANTY items as a justification of the MAINTENANCE program. They are different.

Sorry VFX it isn't just you but this was the one I read and got a hold of.

I have come to the conclusion that the maintenance on the Model S will be a VERY VERY in depth inspection, and probably easily worth $600. But it is more for Tesla's benefit that mine. They are going to want to collect as much, super detailed, information that they can get their hands on. So that their future products don't have expensive warranty issues. Tesla needs it as they have no real wear testing on their cars. They have no idea where they may have problems. But I am confident that if there is a problem with my car, it will be found. But what is the lifespan of a car to me? Will that screen be worth anything in 12 years? Will the interior look halfway decent? Will I need a bigger/smaller/different car? Will I want to buy a new much safer car? I don't need this car to last forever. I need it to last until I get a new car. Which probably won't be more than 12 or so years. Think of a car built in 2000. Think of how much nicer, safer, more efficient cars are now. The next 12 years will be the same.

EDIT: And I don't feel like Tesla did a bait and switch. I don't think Tesla is making a horrible business mistake. I don't think Tesla is acting like all the other car companies. I just think Tesla over priced it. I don't feel like Tesla is making you pay. I just feel like it costs too much. Based on my previous, much less expensive, automobiles.

And my Dodge Neon in High School ran reasonable well to 200,000 miles. The electrics were all messed up, but that wouldn't be helped by regular maintenance.
 
To me, the crux of the matter is that Tesla is claiming two contradictory things (and both in the same blog post): EVs are cheaper to maintain than ICEs, and Model S costs $600 per 12,500 miles to maintain. GeorgeB didn't address this at all in his post.

They could mitigate this by announcing a less expensive plan. For example, pay $100 per inspection, nothing else included. They could still sell the $600 plan as a worry-free premium plan, which I think a lot of people would be willing to purchase. But they really need an option that demonstrates EVs really are cheaper to maintain.
 
So, all you´re upset about is timing? Do you feel this announcement should have been made before people locked in (I think that would have been fair) or is it price and interval?

I think the following should have been made public before people were allowed to finalize their orders (not lay down deposits, but finalize)
1. Public availability of the warranty; the battery was the biggest concern for people
2. Maintenance schedule and costs
3. Connectivity package costs
4. Extended warranty

Timing was a big factor in all this. I haven't finalized my order, but I sympathize with others who have and are upset and I do not want the same thing happening to me when I finalize my order.

If it is the last one, what would be your suggestion and why would that be a good alternative or what makes you an authority in this matter?

What makes me an authority? I am a car owner and live in 'Merica, man.

I think Tesla should do the following:
1. Have everyone's car inspected at 1 year or at 12,500 miles. If you're near (I don't know; let's say 100 miles) a service center, you would be required (yes, required) to bring your car in. If you are not near a service center, a Ranger would visit. I think it is only fair that the Ranger fee be as it is listed: $100. At this inspection, Tesla does what it needs to do. Warranty items are fixed/replaced as needed. Those renewables that need to be replaced are replaced at the dealer's expense (frankly, nothing should need replacement at 12,500 miles or 1 year if less than 12,500 miles.
2. This should be the case for the second year or for up to 25,000 miles.
3. After year 2 or after 25,000 miles, Tesla should start charging the $600/y and every 12,500 miles, or set up some prepayment plan.

This solves two issues in my mind:
1. It gives the owner piece of mind that Tesla is actively involved and monitoring their car. It saves face since the owner doesn't feel like they are being nickel and dimed with a service plan that in some respects is required in order to maintain a valid warranty. The owner knows the price before going into the purchase. Things that break down (and shouldn't break down) are replaced. Tesla gets to tell the owner that problems will develop if they continue to do X. The owner feels like Tesla is working with its early adopter customers.
2. Tesla keeps its reputation that their cars work great and that EVs are the future. Tesla ensures that they don't have a bunch of battery failures and warranty claims against them. Tesla makes a great PR maneuver. Tesla gets two years of real-world testing data to supplement the development of future Model S vehicles and anything else they manufacture. Tesla can start charging for their comprehensive (and I am sure that it is; I trust the Roadster owners on this issue). Telsa gets to feel like early adopters have seen the light and will now pay for the awesome service.

My 2 cents.
 
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To me, the crux of the matter is that Tesla is claiming two contradictory things (and both in the same blog post): EVs are cheaper to maintain than ICEs, and Model S costs $600 per 12,500 miles to maintain. GeorgeB didn't address this at all in his post.

They could mitigate this by announcing a less expensive plan. For example, pay $100 per inspection, nothing else included. They could still sell the $600 plan as a worry-free premium plan, which I think a lot of people would be willing to purchase. But they really need an option that demonstrates EVs really are cheaper to maintain.

Great idea - I'm up for that...$100 per inspection. if it ain't broke, don't fix it. Dont' tie in a service plan with warranty - that just sends mixed messages.