Categories: News

Tesla owns its service centers — a unique business model that may be reaching its limit

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Tesla is understood for sparking an electrical car revolution. It is also introduced providers to clients, like cell repairs and over-the-air tune-ups, that have been as soon as reserved for under essentially the most elite automotive corporations. 

In contrast to the unbiased dealership mannequin utilized by corporations like Ford, GM, and nearly each different automotive producer within the U.S., the place dealerships and repair facilities are owned and operated individually from the model itself, Tesla operates all of its personal service facilities.

However it is not straightforward to alter that mannequin, and Tesla has struggled to maintain up with service as gross sales have soared.  Prospects have complained about lengthy wait instances, an absence of loaner automobiles, and having to journey hours to get to the closest service middle when a cell ranger cannot repair the issue.

Different electrical car start-ups like Rivian and Lucid are following in Tesla’s footsteps with their service fashions. However will it’s doable for Tesla and others to scale up service quick sufficient and maintain clients completely satisfied?

Watch CNBC’s deep dive— the professionals and cons of Tesla’s service

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