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What I sent to Dublin Tesla on May 8 Asking for a replacement / collateral exchange

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holeydonut

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Jun 27, 2020
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I'm sure some on this sub-forum is familiar with how terrible my 2023 Ultra Red Model X experience has been. While some probably wish I would never post again, other users have instead PM'd me telling me how I'm a crybaby and probably cannot afford the car. It's likely that casual lurkers could share this sentiment as well. So if you're interested in purchasing a Tesla Model X, keep in mind this is the service you should expect to receive on a $100k+ vehicle if something doesn't go as planned.

Below is what we emailed to Dublin Tesla's service manager / GM on May 8 after it was clear to everyone involved that the repair would not be completed within the 30 day window from when the car was first delivered to Tesla Service on April 19. In this email, we requested a replacement vehicle (AKA collateral exchange). I keep my receipts. This offer was not accepted by Tesla. We had one last shot to remain in the Tesla ecosystem, but that was not accepted by Tesla.

So instead, a few days later we later escalated to a full buyback which was accepted. And now I have to abandon the Tesla ecosystem because it's been made clear to my family that we made a mistake ever buying into the Tesla ecosystem to begin with.

I am not a lawyer; at the time of this writing I have not involved lawyers.

Since TMC has policies around doxxing, I have [Redacted] any PII.


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May 8, 2023, 1:31 PM

Thanks [Redacted], many sub-par issues have happened with our 2023 Ultra Red Model X (the "Vehicle" which is VIN ending [Redacted] that was purchased on April 6, 2023 and delivered by Sunnyvale, CA Tesla).

This narrative begins with the most severe P0 issues, but all issues as we understand them are included below. With all of the facts as we understand them today, [Redacted] (the "Owners") are requesting a replacement vehicle instead of a repaired vehicle. This is sometimes referred to as a Collateral Exchange.


P0 - major issues:

P0-1) On April 16, 2023 the vehicle had approximately 300 miles and was being operated on a roadway, when the vehicle started to generate many errors/fault-codes. These errors include but are not limited to app_w009, tas_a313, di_a222, di_a246, and di_a223. There were so many codes, that the "Service screen" on the center console could not display them all. Please see attached Exhibits 1 and 2 and 3 showing some of these errors. While these errors were produced, the vehicle's performance degraded and the vehicle eventually became inoperable. The owners had to stop driving the vehicle and called Tesla roadside assistance. While a reset of the vehicle returned the vehicle to service to get home, the owners do not believe the vehicle is safe to operate with two young toddler passengers since the owners do not understand the cause of the issue. The owners do not want to be testers to a mystery defect that can halt on-board drive systems while the vehicle in motion. The owners have not objectively learned from Tesla that a clear root cause has now been repaired.

P0-2) Also on April 16, 2023 when the vehicle had approximately 400 miles, the owners noticed that water was not draining properly after washing the vehicle. Upon inspection of the rear hatch, owner noticed what appeared to be seam sealer or bondo/putty in the channel below the spoiler. Please see exhibit 4. After inspection, the owners' understanding after speaking with the Dublin, CA Tesla advisors is that there is much more of this seam sealer that was not initially visible to the owners. Also, the use of seam sealer for this application was not "normal" Tesla manufacturing practice. It was communicated to the owners that a significant amount of seam sealer was actually used, and that remediation of this issue will require removing the rear window glass and removal of the entire spoiler assembly. With those parts removed, the body shop would then inspect why seam sealer was used in the first place. Also, It was communicated to the owners that replacement of the entire rear hatch component was not a "good path forward"

Please be aware that Tesla could not schedule a service appointment on April 17 (the first business day after P0-1 occurred. The first available date the owners could have a Tesla service center see the vehicle was April 19. This 2 day delay is not the owner's responsibility; it is the manufacturer's responsibility. Therefore, the 30 day warranty/repair period begins on April 17 as it is not the owners fault that Tesla could not see the vehicle until April 19.

These P0 defects alone should necessitate a replacement vehicle. A brand new vehicle should be reliable and instills confidence in operation. Mysterious error codes that result in having to pull over to reboot the car are not representative of this type of confidence. Furthermore, a new vehicle should be without obvious manufacturing defects that require someone in the assembly line to hastily use seam sealer to enclose a weld before the vehicle is painted. The source of the myriad computer error codes cannot be determined since it seems there is no known root cause. AND a replacement rear hatch free of defects does not seem to be possible.


***********************************

P1 - Significant negative for vehicle delivery and initial Tesla response:


P1-1) On April 6 when the purported "new" vehicle was delivered to the new owners, the vehicle was dirty inside and outside. The exterior was covered in dust/debris... it appeared to have just been rolled off of the open-air vehicle transport. The interior was also dirty, with personalized debris (examples include a button from a novelty purse and random shreds of plastic) found under one seat, and the interior windows covered in a greasy film that the owner had to clean.

P1-2) Other issues were identified in the service request that was initiated on April 16. These included the following line items. The issues range from a lack of parking assist and poor manufacturing tolerances and damage to the paint before the owner took possession of the vehicle. Specific images of these items and narrative about the issue has already been uploaded to the service/app tool and are not included in this email. The Sunnyvale, CA sales/delivery team expressed that Tesla Service would "fix" these items. The vehicle owners have been informed by Dublin, CA service advisors that the parking assist functions (see item 3 below) will not be available until an undetermined time in the future. However, this was not what was verbally described on April 6 when the owners took delivery.
  1. Exterior adjustment to the LEFT rear falcon door not to manufacture specification
  2. Tire pressure and tire condition off - had to be adjusted to manufacturers specifications
  3. Arrived with no driver assistance features ***as under the purchase agreement
  4. Damage to hatch on DRIVER SIDE roof rail
  5. Damage to 2 additional locations identified on the liftgate
  6. Damaged turbine wheel aero covers rear LEFT
  7. Scratches identified on hood of frunk - there are 2 different locations with scratches to pain
P1-3) On April 19, 2023 the vehicle service appointment occurred. At that time, the owner received a temporary vehicle (aka "loaner). This loaner was a Model X 100D assembled in December 2017 VIN ending [Redacted]). While the loaner does bear a Model X badge, it was not a reasonable substitute for a brand new 2023 Model X. This loaner vehicle smelled terribly inside, and has the much older computer (MCU2). As a result, the dashboard display was constantly rebooting (would freeze then display the Tesla logo) and the vehicle suspension resulted in a very uncomfortable ride. Occupants of this loaner felt nausea while the same occupants in the 2023 felt fine since the newer vehicle had a much more firm suspension.

P1-4) On April 7, 2023 Tesla reduced the pricing on Tesla Model X by $5,000. Under normal circumstances this is the free market at play and not grounds for action by Tesla to address. However, since this the vehicle being discussed in this email (VIN ending [Redacted]) could not be safely operated beginning April 16, the vehicle has both diminished in value AND the owner could not use it normally during the period that significant value was lost. No comparable loaner vehicle was provided.

These additional P1 issues represent a poor experience for the owners. But these P1 issues also highlight items that could have been remedied during manufacturing, or identified by the Tesla agents operating the Sunnyvale, CA facility. Also, the lack of a comparable loaner diminishes the value of this "new car" for the owner since they did not have an equivalent use of a 2023 Model X.


***********************************

P2 - Other negative experience from Tesla:


P2-1) Repairs have been slow. The expected service completion date communicated to the owners has been delayed numerous times. The first estimated completion date was April 26. Then it was delayed to May 1. Then it was delayed to May 5. On May 5, no documented repair progress had been made on the rear hatch (since the body shop was still investigating the issue). Furthermore, no root cause had been determined for the source of the myriad faults; but Tesla does suspect a "firmware issue" caused the faults in an unknown way.

P2-2) On May 5, the Dublin, CA Tesla service could not be contacted. On that day, some text messages were received by the owners via the Tesla App explaining the service delay and possible new completion date of May 16. A text was also sent offering a different loaner to the owners, but no response was provided after that communication.

The owners attempted to contact the Dublin service center over 10 times on Friday May 5. Please see exhibit 5. Each time no one would answer the service call line. The owners reached an advisor on the sales side, and were told that [Redacted] would reach out to the owners on May 5. But [Redacted] did not act or communicate with the owners.

Very poor customer experience from April 19 to May 5. While [Redacted] (the service advisor assigned to this case) has been helpful, the general practices and behaviors of the Dublin, CA service process have been very poor. The manufacturing flaws of the vehicle cannot be reasonably addressed by the post-sales service attempt to repair.


***********************************


In closing, this has been a frustrating experience for the owners. Regarding the hatch, the proposed repairs would not mimic the build quality expected without using seam sealer. And the root cause of the myriad error faults is not fully understood to anyone at this time. To the owners, assigning a "firmware issue" places the operators at risk of the vehicle repeating the same issues since the actual fault isn't fully understood. At the time of this writing, the vehicle does not have 500 miles, and the owners do not have confidence that prolonged body shop work would restore the vehicle; and the owners do not want to be testers for a firmware theory. The owners are requesting a replacement vehicle (collateral exchange) instead of a repaired vehicle.



Thank you.
 
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Sounds like a bad experience, however Tesla may agree with the request for an exchange/buy back.

A post with your experience and actual outcome surely would be the way to pass on your “buyer beware” message most fairly and succinctly.

I signed paperwork to do a buyback yesterday.

In my post above, I said this was the option Tesla would support, because they would not agree to a collateral exchange on May 8.

I still need to get my cash back and the underlying loan principal repaid, but for now the outcome as agreed is a buyback.
 
Your story has personally helped me in deciding if I want to buy a MX. I really want to buy the car, as it fits our need. But $120k is no chump change. To spend that much money on a poor quality car with no service is not what I’m looking for.
While holeydonut certainly had a terrible experience, his is the exception. My 2022 refresh has been flawless. I had a 2018 X, which IMO needed far too much service. The trade-in value I got at the time (jun-22) was astonishing. I have had absolutely zero reasons to open a service ticket on my 2022, at all. My only complaint is, it gets dirty when I drive it.

 
While holeydonut certainly had a terrible experience, his is the exception. My 2022 refresh has been flawless. I had a 2018 X, which IMO needed far too much service. The trade-in value I got at the time (jun-22) was astonishing. I have had absolutely zero reasons to open a service ticket on my 2022, at all. My only complaint is, it gets dirty when I drive it.



Yep, when Tesla stuff works, it works great. When it doesn't work; Tesla's mindset is that the customer is to blame. I think for the price of the vehicle, the issues could be resolved without encumbering the customer. But Tesla is now top dog, and doesn't provide that type of service.
 
Agree with both your points. I don’t know the real percentage…. But if you are the unlucky half that has issues with your car, good luck dealing with service. You are literally at the mercy of the SA. “Within spec” or I don’t have a solution to the issue is not acceptable to me.

Is it worth gambling $120k on? For now, no.
 
I’ve seen common issues where the FWD doesn’t work in the sun, moldings falling off if you drive too fast in the rain, or doors not opening because it’s a known software issue.

Issues that people have learned to accept, because it’s a Tesla. Why? Cause it drives fast? But don’t drive too fast because the half shafts will break.
 
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So much drama, but so unnecessary. Every state in the US has a "Lemon Law" buyback provision. All you had to do is let Tesla "Service" have their way with you and eventually the car would have been bought back, one way or the other. The fact that there's no "middle ground" where they could have just put you in a new MX is pretty stupid on Tesla's part, but perhaps there's some legal reason they can't do it?

Worse, I presume your brand new MX's title will be forever branded as a Lemon Law Buyback, easily eliminating many tens of thousands of dollars from the car's value, perhaps making it worthless or impossible to sell as well--I see "Tesla Mobile Service Vehicle" in its future:)

Sadly, having owned over a dozen MS's since 2013, we know all to well how Lexus+ service has become Kia- service over the years.

As was stated in a Tesla quarterly conference call a few years ago, "The best service is NO service!" Sadly, while their intent was great, the reality is that Fremont still ships, percentage-wise, waaaaay too much MS (and MX?) garbage out the door and simply expects local Service Centers to pick up their trash. Our latest MS, a 2022 from August or September production, was a pathetic mishmash of misaligned parts, torn interior bits, and a "squeaks from the first mile" MCU display. Two or three service visits later, it's decent, but what a waste of everyone's time and effort, and a great way to piss of the customer.

It's a pathetically sad way to do business, but it somehow seems to work for Tesla. Perhaps we're all suckers for the great Supercharger network, or the overall plusses outweigh the negatives?

It would all just be so avoidable if Tesla would just step up their QC (and/or perhaps check staff for alcohol or cannabis use prior to each shift)?

Rant over, but it would be nice if someone at Fremont would give a damn.
 
While holeydonut certainly had a terrible experience, his is the exception. My 2022 refresh has been flawless. I had a 2018 X, which IMO needed far too much service. The trade-in value I got at the time (jun-22) was astonishing. I have had absolutely zero reasons to open a service ticket on my 2022, at all. My only complaint is, it gets dirty when I drive it.

He's not the only one. I had a far worse experience with my X...coming up on 7 months of a totally useless vehicle, and I'm still waiting on Tesla's buyback agreement.
 
don’t take this the wrong way, but why do you keep buying if there are issues?

that seems to valid Tesla to continue doing what they are doing.
Easy: Tesla's success is likely going to be essential if we are to have a usable planet in the decades and centuries ahead.

It doesn't get more serious than that, does it? So we keep buying their questionable quality MS's . . . it's all about the mission and I guess we keep "taking one, and more, for the team."

Tesla is far from flawless, sadly. It appears they have massive Quality Control gaps, but volume seems to suggest that most are satisfied (plus, the MS and MX are now niche products with limited impact on Tesla, so perhaps the "B Team" is working those assembly lines).

Lastly, buying an EV from incumbent ICE producers just gives them more credits to sell more ICE SUV's--not good.
 
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I completely agree you got screwed on the car and they should buy back. That being said I think you are disingenuous saying no lawyers involved yet. That entire email was written in the 3rd party always referencing the "owners". Unless you wrote that for someone.
 
Your story has personally helped me in deciding if I want to buy a MX. I really want to buy the car, as it fits our need. But $120k is no chump change. To spend that much money on a poor quality car with no service is not what I’m looking for.


People with a good experience will be quick to jump in and tell you how great their Tesla's are. But for $120k, the problem is when things don't go well, Tesla isn't able to step in and make things right. I hope you find the right car you're looking for with the service to complement the experience!
 
I completely agree you got screwed on the car and they should buy back. That being said I think you are disingenuous saying no lawyers involved yet. That entire email was written in the 3rd party always referencing the "owners". Unless you wrote that for someone.


If you want to pay for me to do a sworn affidavit, I will attest I wrote that letter; that no lawyer helped me to write that letter; and that I myself am not a lawyer. As @bmah and @jjrandorin are able to explain, I'm pretty stupid and the only skill I have is how easily I get large soulless corporations to hate me heh.

When I formally contacted Tesla with the request for a collateral exchange, I removed all emotion and pretense. Focused on staying with the facts of the matter and a concluding statement that we (the owners) were requesting a collateral exchange. The reason for doing so is to make it about the issue, rather than about the feelings. I've also worked in automotive, and know that nobody wants to be involved in a lemon law process if they can avoid it. I really thought Dublin Tesla would accept this; I was really surprised when the feedback was we didn't know how the auto industry worked and how the request was unreasonable.


@TSLA Pilot, there are three stages of escalated recourse. Relying on legal-stuff to resolve an issue is a terrible customer experience.


1) Collateral Exchange. This is a surefire way to just get past something in a way that keeps an owner with the brand, and usually just puts a car into the loaner fleet of the retailer. This is because there is no additional sales tax to be paid, and the reclaimed vehicle can still be sold as used without any negative marks. This can be difficult on a used car because someone owes the depreciation on the collateral difference. But on a nearly brand new car, it is the easiest way forward for all parties w/out involving lawyers.

While it's not a perfect situation, 9/10 the customer and automaker are pretty happy with the outcome. When I knew the car wouldn't be repaired within the 30 day window, I requested this.


2) Buyback. This is a "goodwill" item extended by the automaker. The vehicle can still be sold as used without any alerts to a future buyer on the secondary market. On a car with this low mileage, the buyback is simply the gross value of all cash required for the sale. Unfortunately this means double-dipping the sales tax since that has to be "bought back" as well. On a car with more mileage, they'll adjust the offer to reflect diminished value of depreciation. This approach is often coupled with rolling the buyback value into a new purchase with the brand. But it doesn't necessarily need to happen that way. And since TSLA made it clear they didn't want us to be their customers any more, We have to wait 30-60 days to get the cash back. This process is annoying; I have to sell stock and have good enough credit to go buy a second $100k car. I still have two kids and a mother in law to move around.


3) As @rpo may be able to attest the Lemon process is the absolute worst outcome for everybody. The only people that benefit from a lemon process are lawyers. The buyer gets hosed because it often takes 60+ days to get the cash from a settlement. Unless a family actually had an extra vehicle; this liquidity tie up really screws over the buyer. Tesla has billions of cash, most people don't have that type of capital ,but really need a car for their families/jobs. Plus the buyer can't reimburse the cost of a rental during a lemon process. This approach is almost a 100% guarantee the buyer will never buy that brand again. And, the automaker gets hosed by paying legal fees and the car getting recorded as a lemon. To Tesla's credit, they usually don't let a process get to this point.


Bottom line, we had bought into the Tesla Ecosystem and green energy vision. The solar on our roof and two Tesla Gen 3 chargers were just waiting for a second Tesla. Sure this 2023 Model X had issues, but Tesla can't give you a loaner that is remotely close to what you'll need to keep your normal family/commute going. We wanted to keep a Model X in my garage via collateral exchange. Their surprising response has made it easy for my wife and I to never buy a Tesla again.
 
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2) Buyback. This is a "goodwill" item extended by the automaker. The vehicle can still be sold as used without any alerts to a future buyer on the secondary market. On a car with this low mileage, the buyback is simply the gross value of all cash required for the sale. Unfortunately this means double-dipping the sales tax since that has to be "bought back" as well. On a car with more mileage, they'll adjust the offer to reflect diminished value of depreciation. This approach is often coupled with rolling the buyback value into a new purchase with the brand. But it doesn't necessarily need to happen that way. And since TSLA made it clear they didn't want us to be their customers any more, We have to wait 30-60 days to get the cash back. This process is annoying; I have to sell stock and have good enough credit to go buy a second $100k car. I still have two kids and a mother in law to move around.

Good reason not to buy a used car from an auto dealer. LOL
 
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Good reason not to buy a used car from an auto dealer. LOL


This article is fairly timely... in our case the VIN in question has had written/email communications to the extent the operators feel the car is unsafe.

But Tesla had previously deemed a vehicle that spits out a bunch of errors and eventually stops functioning to be safe even if no real root cause was identified. All they have to do is restart the car a couple times and poof, the error codes go away lol.

With the extra scrutiny all of a sudden, I wonder what Tesla is going to do with this one. If Dublin Tesla offers you a loaner that is a 2023 Ultra Red MX, 7 seat, white interior, yoke, and 22" ... maybe you decline that one :)

 
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What a horrible experience. I guess the good part is they agreed to buy it back and didn't stall several months.

My friend had to go the lemon route with Chevy for his Z06. The process took so long, he put 40K miles on it and they bought it back in full lol.


Yeah if I had to go through what @rpo is going through with the full blown lemon process, I'd be losing my donuts. I think the worst part is that throughout this, I had no car to drive to take my kids around and my MIL.

I don't know what they expect people to do if their primary family hauler is out of commission. Lenders don't like to give a customer access to lending capital when they have a Model X loan/lien on their credit profile. They don't care if there's a buyback or lemon process going. If that loan shows up on underwriting, that lender is pulling the credit. And coming up with $50k to put down on another car while you resolve a trash buyback is hard to pull off. I happen to have a personal policy to not over-lever so I could handle this by picking up a second car from Mercedes very quickly. But I know if I followed conventional wisdom, I'd be screwed right now.

And this is why I don't know why people will chance their $120k to pursue the greatness of Tesla Tech. Basically the Tesla Service makes it untenable if you are reliant on the tech to work. Yeah, some people have great experiences with their Teslas blah blah blah. But when the Tech doesn't work, the owner is SOL.