HaulingAss
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Tesla has never modified their 2012 philosophy on not treating service centers as centers of profit. If they did, it was all in your head.Tesla modified that statement 180 degrees - it was an original Elon commitment in 2012 - they now show service profit and have normal shop rates
Here's an article in a auto repair publication highlighting a 2017 earnings call:
Tesla: Company-owned body shops to open this year, could be revenue center | Repairer Driven News
The above excerpt outlines the sensible philosophy that it serves the automakers reputation the best if it doesn't cost an arm and a leg to keep your car on the road, like it does at legacy auto dealerships who treat the service center as one of their main profit centers. They want to get that money out of your wallet.As for mechanical service centers, Tesla continues to lose money on them, but to date they haven’t been intended as a profit center. Tesla’s letter speaks more of having them lose less rather than turn a profit.
CEO Elon Musk in the May 2017 earnings call described not treating service as a profit center, according to a Seeking Alpha transcript: “Our aspiration would be we make zero service revenue because the car never breaks.”
“Our philosophy with respect to service is not to make a profit on service,” Musk said a few years ago, according to Wired. “I think it’s terrible to make a profit on service.”
This philosophy suggests why Tesla would consider collision a revenue stream but not view mechanical repair in the same light. Based on Tesla’s logic, unexpected breakdowns and a constant need for maintenance would reflect badly on it as an OEM and must be minimized. However, crash would be the fault of an external party — the driver, another motorist, a deer, etc. — and therefore appropriate to make money repairing.
Arguing against Elon's philosophy on Service Centers just makes you look silly, because it's so obviously true.
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