Vehicle service

Tesla receives service revenue from customers after the initial vehicle purchase and reached almost $500 million in 2020 Q2.

As of August 2020update, those services include:

• Vehicle servicing
• Charging
• Insurance
• Software upgrades
• Improved connectivity

Future services which have been discussed include: Tesla network, Autopilot as a subscription, paying for a WiFi hotspot in the car, and the Tesla app store.

Vehicle servicing

For most vehicle manufacturers, only dealers can service (and sell) the cars, and the manufacturer receives no revenue from servicing cars. Tesla cars are not serviced through dealers.

In 2016, Tesla recommended to have any Tesla car inspected every 12,500 miles or once a year, whichever comes first. In early 2019, the manual was changed to say: "your Tesla does not require annual maintenance and regular fluid changes," and instead it recommends periodic servicing of the brake fluid, air conditioning, tires and air filters.

At the June 2018 shareholder meeting, Elon Musk stated that Tesla will open body shops in the top ten U.S. metropolitan areas, stocking some body parts, potentially allowing for same-day service. As of June 2020update, there are four Tesla-owned body shops in the US.

Charging

Supercharger network

In 2012, Tesla began building a network of 480-volt fast-charging Supercharger stations. As of December 2019update, there are 1,716 Supercharger stations operated globally with over 15,000 superchargers. The Supercharger is a proprietary direct current (DC) technology that provides up to 340 hp (250 kW) of power. The navigation software in Tesla cars can recommend the fastest route for long-distance travel, incorporating possible charging delays.

Almost all Tesla cars come standard with Supercharging hardware. Model S and X cars ordered before January 15, 2017 received free unlimited supercharging. Model S and X cars ordered between January 15, 2017 and August 3, 2019 got 400 kWh (1,400 MJ) of free Supercharging credits per year, which provides a range of roughly 1,000 miles per year (1,600 km/a). Between August 3, 2019 and May 26, 2020, all Tesla Model S and X cars ordered came with free unlimited supercharging again. Model 3 cars do not come with free unlimited supercharging.

In December 2016, after a complaint sent to Musk via Twitter about abuse, Tesla started charging an "idle" fee (depending on percent occupancy of the Supercharger station) for vehicles that remain plugged into Superchargers after they are fully charged.

Destination charging location network

In 2014, Tesla discreetly launched the "Destination Charging Location" Network by providing chargers to hotels, restaurants, shopping centers, resorts and other full service stations to provide on-site vehicle charging at twice the power of a typical home charging station. On April 25, 2016, Tesla launched European destination charging, with 150 locations and more to be added later. Destination chargers worldwide totaled over 23,900 in mid 2019.

Destination chargers are installed free of charge by Tesla-certified contractors; the locations must provide the electricity at no cost to their customers. All installed chargers appear in the in-car navigation system.

Insurance

Tesla partnered with Liberty Mutual Insurance Company to offer an insurance plan designed specifically for its electric cars. The plan was made available to US customers In October 2017. In August 2019, this partnership was superseded by a partnership with State National Insurance designed specifically for its electric cars. It was initially only available to Tesla owners in California. In July 2020, Musk, relying on data obtained through their partnership with State National Insurance, announced that Tesla was creating its own major insurance company. The insurance will use individual vehicle date to offer personalized pricing.

On June 4, 2017, the American Automobile Association raised insurance rates for Tesla owners following a report from the Highway Loss Data Institute. The report concluded that the Model S crashes 46% more often and is 50% more expensive to repair than comparable vehicles. Similarly, the Model X was concluded to crash 41% more often and to be 89% more expensive to repair than similar vehicles. As a result, AAA raised insurance rates on Tesla cars by 30%. Tesla said that the analysis is "severely flawed and not reflective of reality", however, Tesla failed to provide any contradictory numbers. Shortly thereafter, Russ Rader, the spokesman for the Insurance Institute for Highway Safety, confirmed the AAA's analysis and that "Tesla's get into a lot of crashes and are costly to repair afterward". The following year, an analysis of claim frequency and insurance cost data by the Insurance Institute for Highway Safety conducted by financial research provider 24/7 Wall St. found that the Tesla Model S and Model X were the two most expensive vehicles to insure. Musk hopes that these insurance rates will greatly decrease once driver-assist and self-driving technology become commonplace.

Software upgrades

Tesla offers the following over-the-air software upgrades after customers purchase their car:

• Basic Autopilot
• Full Self Driving
• Acceleration boost (for Model 3 owners)
• Rear-heated seats (for Model 3 owners)

Improved connectivity

All Tesla cars come with "Standard Connectivity" which provides navigation using a cellular connection, and video streaming, browsing the internet, and music streaming (with a paid subscription) only over WiFi and/or Bluetooth. "Premium Connectivity" adds access over a cellular connection to the following: live traffic, satellite maps, and music streaming while you're driving or parked, and video streaming, browsing the internet and "caraoke" while you're parked.