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Facing $22,000+ Bill To Replace Out-Of-Warranty Battery, Man Blows Up His Tesla. Why Should You Pay Attention?
Finnish man, facing $22,000+ out-of-warranty battery replacement bill, blows up his Tesla. Highlights need for robust third party EV service & parts network outside of Tesla dealer network.
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️
DISCLAIMER: DO NOT TRY THIS AT HOME
After more than a month waiting for feedback from his local Tesla dealership in Finland, to only be told that his out-of-warranty battery pack on his 2013 Tesla Model S would need to be replaced at a cost of €20,000 ($22,600), a Finnish man decided to BLOW UP his Tesla. Yes, you didn’t read that wrong - both the cost of repair and the blowing up decision (full video above). It should be noted, courtesy of car site Jalopnik, that a used 2013 Model S in Finland can go for upwards of €35,000 ($39,500) these days, so maybe he didn’t need to blow up the car after all 😬. That being said, you can’t blame him in a way - a $20,000+ car repair bill 💸 would set off the best of us.
As we’ve highlighted in previous posts, the uncertainties around how quick and costly Tesla (or any EV for that matter) repairs are, especially outside of warranty, may slow widespread adoption of EVs. For example, in the 5 boroughs there is only one official Tesla service center in Brooklyn (Red Hook) and third party shops qualified to repair, outside of body work, Teslas (and other EVs) are essentially non-existent. To be fair to Tesla, the New York State dealer lobby has also made it difficult for the company to open new stores (because they directly sell their cars without dealer involvement). What’s unclear though is if Tesla is prevented from opening more service centers and why they wouldn’t train/qualify independent auto repair shops in servicing their vehicles.
In fact, Tesla recently lost (yes, as in they were lobbying against) a “right-to-repair” measure in Massachusetts, that “ensure(s) independent repair stores have access to the same diagnostic tools as manufacturer run repair stores”.
❓ Doesn’t seem like a very consumer-friendly stance for Tesla to take if I’m being honest ❓
Don’t get me wrong, I am a believer in an EV future and am encouraged to see EV adoption and investment rates increase, especially here in NYC. At the same time, there are a lot of questions fleets and drivers, who want to adopt EVs, have. In fact, I first spoke to Tesla in 2017 about adding their cars to a luxury TLC fleet I operate. I visited and met with the Tesla service advisors in their Red Hook location as well and also test drove a car. I’ve even gone to a Tesla dealership in the DC area with my brother and father a few years ago. For all intents and purposes I am an Elon Musk and Tesla fan!
So why didn’t I buy a Tesla for the fleet I run? I could have made a big splash back in 2017 having a TLC-plated Tesla. I really wanted to be a FIRST MOVER as well. Short answer is when I asked Tesla if the battery warranty would be voided if the car was used for commercial purposes, such as rideshare, they would neither confirm or deny that the warranty would be voided. In short, they would likely void the warranty, or at least that’s my assessment after trying to get a definitive answer from multiple Tesla representatives to no avail. While operating an EV is cheaper than a gas car (i.e., ICE) in many ways (i.e., no oil changes, very few moving parts), the battery, if not covered by warranty, can completely change fleet/vehicle math if it degrades (loses range) or needs replacement. Probably made pretty clear by the Finnish gentleman’s decision to blow up his Tesla!
….when I asked Tesla if the battery warranty would be voided if the car was used for commercial purposes, such as rideshare, they would neither confirm or deny that it would be. - AutoMarketplace
For example, I know Mercedes-Benz dealers are very upfront about the fact that if you put TLC plates on their cars, the warranty is voided (i.e., commercial use clause). When I saw a video of famous Tesla frenemy Rich Rebuilds, parting a salvaged Tesla after saying the owner junked it because Tesla voided the warranty after they found out it was being commercially used (ridesharing? 🤔), that made it pretty much impossible for me to the buy the car for TLC purposes.
Third Party EV Repair Network in NYC
As I said above, I believe in an EV future ⚡. However, a lot of the attention (rightfully so too) has been on building out EV charging infrastructure in NYC. What’s not as discussed and what I think will be an equally large opportunity for many people in the NYC automotive and TLC industries, is to invest in building out a third party EV repair network. In other words, building a network of independent (i.e., outside of dealership) auto repair shops that can work on EVs. Anyone who works in the TLC industry knows that a lot of money can be saved on auto repairs by working with independent shops vs dealerships.
AutoMarketplace hopes to help in this effort and more to come on that soon!
Are you hesitating to buy an EV because you fear unknown or expensive auto repair bills? Is it something that’s ever crossed your mind? Let us know your thoughts below or by e-mailing us at info@automarketplace.com
AutoMarketplace NYC covers the for-hire transportation industry and automotive news. Check out AutoMarketplace on YouTube ▶️