A little background

Teslas are basically computers that run on top of tires. They require very little maintenance, and most “updates” can be done remotely.  The reason for less maintenance is these vehicles do not have an internal combustion engine, so no need for oil changes, air filter replacements and spark plug replacements.

Additionally, electric vehicles use what is known as “regenerative braking,” which returns energy back to the batteries and generally results in less wear of the brake pads and discs.

With that in mind, let’s delve into what Tesla does in the service space and how that will likely influence the future of the automotive service business.

They come to you, wherever you are

Tesla employs what it calls Tesla Mobile Service Rangers—mobile technicians who make house calls. In some cases, the service is delivered remotely. The Model S can wirelessly upload data, so technicians can view and fix some problems without ever physically touching the car. 

What does this mean

Brands such as Lincoln have leaned into the Pickup and Delivery Service model heavily, but for the majority of the service locations out there, most work is still done in the shop.  Look for the Pickup and Delivery model to accelerate, much like digital retailing has on the sales side of the business.  Dealers, take note: convenience is key to many customers and this is one area where you have a distinct advantage.

They monitor their vehicles and proactively fix them

Tesla remotely monitors its vehicles, resulting in 90% of issues being identified remotely.  If they see there is a problem with a switch, they will proactively reach out and offer to send a Ranger, with a loaner vehicle, to fix it.  

What does this mean

There has been much speculation about the future of Telematics. Proactive service will be a reality in the very near future and as a result, we will see better overall customer satisfaction.

There is a serious shortage of repair personnel for damaged vehicles

For example, there is an extremely low amount of repair facilities that can repair suspensions on a Tesla.  Wait times can be more than 6 months.  This is a well-known fact the company knows about, but it has been able to do little to remedy the situation.

What does this mean

This has been a trend in the automotive service space for years and once again, Telsa is pouring fuel on the fire.  Vehicles have become more complex, fewer repairs to engines and more chip-related issues that require sophisticated and often OEM specific diagnostic tools. The automotive service space is on the verge of its own “tech revolution.”