Tesla gears up production but struggles with after-sales service
On Wednesday, American electric car maker, Tesla, has confirmed again meeting its goal of producing 5.000 Model 3 cars a week and says to gear up to 6.000 a week by the end of August. While production problems seem to be solved gradually, Tesla is struggling with its after-sales service, though, especially in Norway, ‘Tesla country par excellence’.
739,5 million dollar loss
In the second quarter Tesla saw a 739,5 million dollar loss, a figure that nearly doubled compared to the same period last year, but less than the 900 million expected by the analysts. CEO Elon Musk, however, stills assures profitability is on the horizon for the third quarter. At the stock exchange investors apparently welcomed the ‘news’ and made the Tesla share jump up with 8,93%.
Norwegian Tesla owners complaining
Tesla has delivered in the second quarter 18.449 Model 3 and says to aim at 50.000 to 55.000 cars in the third quarter. By the end of August, it wants to produce 6.000 cars a week and 10.000 cars a week “as soon as possible”. It says it has solved the most essential production problems and is focusing on the last bottlenecks now.
Meanwhile, Tesla is struggling with answering complaints from a lot of Norwegian Tesla owners about quality and servicing problems. Proportionally Norway is Tesla’s most successful market, with more than 26.000 Model S and Model X driving around.
Waiting for months for repairs
“I have my car (a Tesla X) for eight months now and it drove without problems for four days”, Yngve Solverg told AFP, mentioning problems like quirky rear doors preventing him from parking between other vehicles or a failing suspension and having to wait for months for Tesla to do something about it.
Solverg is very disappointed by the under-performing service network of the American car maker. He is not alone. 38% of the Norwegian Tesla owners association members says to be unsatisfied with Tesla’s after-sales.
Service at home
In the first quarter, Tesla has climbed to the fourth place of companies Norwegians are complaining about the most at the Consumer Council, not an enviable place coming from the 24th in the ranking before. “The Norwegians have good reasons to complain”, Elon Musk admitted in a tweet beginning of July. “We are having difficulties to develop our service installations, especially in Oslo.”
Musk says the problems could be ‘rapidly solved’ if the Norwegian government would allow him to send out service trucks to make repairs at home, something that is not possible today due to restrictions for repair shops.
According to Tesla’s Norwegian spokesman, Even Sandvold Roland, after-sales service has improved with 30% this year, with supplementary teams put in place and a big service center to open in Oslo soon.
Meanwhile we noticed some improvement and most owners understand the ‘growing pains’ of the young brand, says the Tesla owners association’s president, Satheesh Varadharajan. Even Yngve Solverg didn’t lose his faith in the American car maker and is keeping – for now at least – his reservation for a Tesla Model 3 on top of his Tesla X.