VolklKatana

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Tesla (TSLA) makes massive push for service to catch up with sales
Fred Lambert

Oct. 29th 2020 6:22 am ET

Tesla has told staff that it is preparing a massive push to expand service capacity as it attempts to catch up to its rapid growth in sales.

Over the last few years, Tesla has been growing at a ferocious pace with deliveries and production capacity seeing important increases.

Now the Tesla customer fleet has reached over 1 million cars.

Unlike most other automakers who rely on third-party franchise dealers to provide service to customers, Tesla owns its entire global service infrastructure, which it is trying to ramp up alongside sales and production.

In recent years, it hasn’t been able to keep up with Tesla’s growth.

Over the last 12 months, Tesla’s deliveries grew almost 50% year-over-year — adding over a half million vehicles to its fleet.

But over the same period of time, Tesla’s service centers grew by only 12% and its mobile service fleet by 8%.

Tesla-Mobile-Service.jpg


Last year, Tesla made several statements about expanding service after CEO Elon Musk admitted a “foolish oversight” of Tesla’s service coverage and plans to open many more service centers around the world.

Things moved slowly, but they started to ramp up last quarter with Tesla adding 20 new service centers in just a few months.

A source familiar with the matter told Electrek that Tesla communicated to its staff that it plans to significantly ramp up service over the next year with at least one new service center opening per week in 2021.

It means that Tesla plans to add over 52 new service centers in 2021.

Tesla-service-hero.png


Tesla currently operates 466 service centers around the world.

Tesla president of automotive, Jerome Guillen, has also recently stated that he is on the lookout for real estate that the company can quickly turn into Tesla service centers.

We recently reported on Tesla looking for real estate in the Northeast to “open lots of service centers.”

The new service centers are going to be located where Tesla is seeing strong demand for its vehicles and where they see service-center capacity already lacking.

New service centers also create more demand for Tesla.

Musk has previously said that Tesla has found expanding service centers, and the Supercharger network are Tesla’s two best ways to bring in more customers.

Electrek’s Take
This is good news. Service delays are a recurring complaint from Tesla owners in some markets where Tesla never seems to catch up to growing sales.

Here in Quebec, service centers are sometimes booked weeks if not a full month ahead of time, but they recently opened a massive new service center in Laval, which is likely to help with the service capacity in the greater Montreal region.

On top of expansion in markets lacking a service center altogether, there are many markets in the same situation that need a new location to help lower the demand on existing locations.

Let’s hope that Tesla delivers on this goal of a new center every week next year. Tesla owners are going to need it if Tesla delivers what is expected to be ~800,000 new cars next year.

That will push Tesla’s fleet to more than 2 million vehicles — meaning that the fleet will have doubled over less than two years.
 

ajdelange

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Tesla's marketing approach has been to put in SuperChargers to see how the public in the areas where they put them respond. A major determinant is, of course, the population density in the area. They will clearly sell more cars by installing more chargers in more densely populated areas than they will putting them into Newfoundland and this is reflected by the number of SC in the Maritimes at present. But they want to sell cars there too. There are some SC in the Maritimes and there will be more.

This is a round about way of saying that I don't think there are going to be any Service Centers in the Maritimes too soon. I guess it's also time for me to quit griping that it's 2hrs to Montreal and 3 to Q.C. Ranger service is great and there is no reason they couldn't have that out there. But it seems ranger service is declining. Ranger service is not available this summer for the same repair for which it was last summer.
 

carpedatum

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Huh - I wonder if Jerome has considered doing some sorta deal with Sears over its failing auto centers.
 

TheLastStarfighter

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Tesla's marketing approach has been to put in SuperChargers to see how the public in the areas where they put them respond. A major determinant is, of course, the population density in the area. They will clearly sell more cars by installing more chargers in more densely populated areas than they will putting them into Newfoundland and this is reflected by the number of SC in the Maritimes at present. But they want to sell cars there too. There are some SC in the Maritimes and there will be more.

This is a round about way of saying that I don't think there are going to be any Service Centers in the Maritimes too soon. I guess it's also time for me to quit griping that it's 2hrs to Montreal and 3 to Q.C. Ranger service is great and there is no reason they couldn't have that out there. But it seems ranger service is declining. Ranger service is not available this summer for the same repair for which it was last summer.
The SC network in the Maritimes is actually great. There's one everywhere you need one. The best part is they have partnered with Irving Big Stops so they are really convenient to get to, and you can eat, get snacks, beer or whatever. The Maritimes are such linear travel network they are easy to service with SC's. The only gap for me right now is visiting my parents in Cape Breton, but they are building one 10 minutes from their house this year. It's great coverage.

Tesla's are becoming more popular here now too. I see one or two on almost every trip to Halifax these days. I think we'll see a sales/service center there before too long. It's got 500k people now, it can support it.
 

ajdelange

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The SC network in the Maritimes is actually great. There's one everywhere you need one.
If you are living with it and happy with it then who am I to complain. But I only find 6 in New Brunswick and 1 in Nova Scotia. Nothing on Nefoundland, nothing in Labrador and nothing on PEI.

Tesla's are becoming more popular here now too. I see one or two on almost every trip to Halifax these days. I think we'll see a sales/service center there before too long. It's got 500k people now, it can support it.
Well I hope this will be the case as we want to visit out there (if COVID goes away). I see a bunch of CCS/CHAdeMO chargers planned for Newfoundland from which we can charge and if it's slow who cares. We wouldn't be in a rush to get anywhere. But I don't see any plans for SuperChargers there.

It's only fair to point out that we city folk are awfully spoiled - I have multiple Service Centers and Super Chargers withing 20 minutes of where we spend our winters.
 

TheLastStarfighter

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If you are living with it and happy with it then who am I to complain. But I only find 6 in New Brunswick and 1 in Nova Scotia. Nothing on Nefoundland, nothing in Labrador and nothing on PEI.

Well I hope this will be the case as we want to visit out there (if COVID goes away). I see a bunch of CCS/CHAdeMO chargers planned for Newfoundland from which we can charge and if it's slow who cares. We wouldn't be in a rush to get anywhere. But I don't see any plans for SuperChargers there.

It's only fair to point out that we city folk are awfully spoiled - I have multiple Service Centers and Super Chargers withing 20 minutes of where we spend our winters.
One of the 6 NB chargers is at Aulac, which is essentially Amherst NS. There's one in Halifax, and one going up in New Glasgow and Port Hawkesbury. The nature of the province (NS) is that you are never more than 50 km from the ocean. So 4 superchargers will cover almost the entire area. The only area of NS without a charger within 100 km will be the southern valley area. Everyone else will have a charger wherever they are going.

It's similar in NB, as the chargers follow the Trans Canada. You'll never be too far from a charger. I plotted out a trip through NB to Boston, which I do every now and then, and it was never more than an hour from a SC. Makes it very easy to plan your stops on your trip.
 

ajdelange

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I want to go to the Fogo Island Inn (if, for no other reason that it has a Tesla Destination charger). What do you suggest for that?
 

Ryv

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A recent visit to Brentwood sales and service center, near Nashville TN, revealed that Knoxville, approximately where I have moved to recently, is prepaeing for some degree of center there as well.
This pleases me, being far more convenient for my SR+ which is holding off madness waiting for my CT ^^;;;
 

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