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Live Blog Tesla Announcement April 26 - Elon Musk

Sara Muron (new) head of corporate communications makes introduction.


Design & Engineering
Supply Chain
Factory turn rate of 20,000

Now focus turns to service and warranty
1. 80 fully loaded Model S as loaners. They will available for purchase with discount of 1% per month off of new price.
2. Valet program for pickup and delivery
3. Annual service contract AND checkup is optional. Warranty will be valid.
4. All damages covered including leaving battery at low state of charge.

@EVbugs - you get a discount by pre-paying for the service.

I'm not that excited by the statement -- making the service optional is something that should have been done originally, and they just corrected it. The battery warranty being "more" unconditional is good, but unlike Nissan Tesla doesn't guarantee any given level of battery degradation. So, I don't think it really does much to allay concern of those who are worried about having to buy an expensive battery because it has degraded to where the range is insufficient for their needs.

Jat -- think you are right on the money. Need to establish what is the acceptable degradation in the warranty contract. How do customers know if its not specified anywhere? This would help with the peace of mind equation significantly for a mainstream car buyer to know what is the base range over an eight year period would be.

After reading the CNN report about the Maintenance Plan is optional, I thought I should cancel my 4 year plan. After some thinking, I know I need my MS to be checked/maintened periodically, if not every year, 18 months interval the most. There is no other car shop, I don't think can service MS cars which required diagnostic equipment, tools and all. After all, the function/feature upgrade may not be included, We'll find out from the official statement.

This is all great, I'm keeping my service plans but what about service manuals or at least maintenance documentation. I think Tesla maybe the only car company that so far refuses to provide this info. Elon, would love to know your position on this subject.

@jk2014 - read the battery warranty - under "Battery Limited Warranty"

The Battery, like all lithium-ion batteries, will experience gradual energy or power loss with time and
use. Loss of Battery energy or power over time or due to or resulting from Battery usage, is NOT
covered under this Battery Limited Warranty. See your owner documentation for important
information on how to maximize the life and capacity of the Battery.

So there is no warranty at all over degradation from normal use. It has to be "malfunctioning or defective" to be covered, and while you might could argue that having 50% capacity in a year is defective, I think it isn't entirely clear you would win that. Nissan had the same problem, where they gave fuzzy numbers and then especially after some people in AZ had battery issues they had to make it explicit. They now say that they will replace you battery free of charge if it falls below 9 bars of capacity (out of 12) within 60 months / 60k miles. We all believe that Tesla will do better than that, and if history with Roadsters is any indication they should, but if they really want buyers to have confidence they need to give explicit protection against premature degradation.

Elon said any product that needs a manual is broken. So I guess he doesn't want to issue broken cars.

@jat - You would still have a very good argument under the warranty if the amount of degradation were abnormally high. The standard you would use in making this case would be based on the amount of degradation experienced by other Model S cars, Roadsters, and other EVs. I know express numerical guarantees would give you more comfort, but you are not without remedies.

@DouglasR - I'm not the one who needs comfort -- when I bought my Model S, I decided I was willing to buy it even given the risk that Tesla went bust, Superchargers were never built near me, etc. People buying expensive cars are probably less sensitive to price than those buying cheap ones so maybe it isn't an issue with the Model S but it definitely will be an issue with GenIII.

Maybe at some point TM will come up with a number for "normal" degradation per 10K miles or SLT.

In 10 years, Elon Musk may become (regardless of intent) the richest person in the world.

His leadership -- if he holds true -- will transform one of the largest industries in the world.

I'm 41 years old and believe that I'm now living in what could be one of the most exciting moments in automotive history.

This is going to be a fun ride.

I have had my model S now for about two weeks and EVERYONE who sees it wants one!

If you can financially survive the onslaught of the conventional auto industry for a year or two and especially if you can develop an improved battery which would give 500-600 miles on a charge, there will be NO STOPPING TESLA!


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