Tesla to Handle Most Collision Repairs Internally
Tesla's CEO announces plans to manage the majority of collision repairs in-house to reduce prolonged wait times caused by third-party body shops.
Tesla Inc. (TSLA) has committed to conducting most collision repairs internally after numerous Tesla owners expressed frustration over lengthy delays at external body shops.
In a series of tweets on Sunday, CEO Elon Musk highlighted the excessive wait times Tesla owners face when relying on third-party repair centers after accidents. "Tesla is transitioning most collision repairs in-house because external shops take weeks or even months, causing significant frustration for our customers and us," Musk stated.
He also acknowledged challenges moving from "production hell to delivery logistics hell" in response to a customer's tweet regarding indefinite delivery delays. (See also: Tesla Missed Model 3 Production Target in August)
Apologies, we've shifted from production hell to delivery logistics hell, but this issue is more manageable. We're making swift progress and expect a resolution soon.
— Elon Musk (@elonmusk) September 17, 2018
Addressing Delays Linked to Third-Party Repair Shops
Musk, who initially announced plans for an in-house collision repair service at Tesla's annual shareholder meeting in June, emphasized that Tesla’s own body shops aim to deliver superior service. The objective is to complete repairs in "under an hour" and return vehicles to owners in a condition "better than before the accident."
He noted that some Tesla-operated repair centers are already completing collision repairs within 24 hours.
Musk explained how Tesla’s specialized collision repair service can streamline the process by eliminating delays in parts ordering and insurance approvals. "Third-party shops are generalists supporting thousands of makes and models, whereas Tesla collision repair focuses exclusively on three models," he said. "Maintaining parts inventory and bypassing insurance wait times significantly improves turnaround." (See also: Tesla’s Global Finance Chief Resigns.)
However, a user responded by pointing out that third-party shops struggle to expedite Tesla repairs due to limited access to spare parts. Unlike other automakers that supply parts directly to repair shops, Tesla requires parts to be picked up from its showrooms or service centers.
Musk acknowledged the parts supply issue and assured it will be a top priority after overcoming the upcoming logistical challenges in vehicle deliveries. "Service and parts availability will be Tesla’s main focus following the intense car delivery period ahead," he wrote.
Industry experts expressed skepticism about Tesla’s plan to bypass insurance approvals for repairs. Ron Arth, owner of George V. Arth & Son repair shop in Oakland, California, told CNBC that such a strategy could be challenging unless Tesla absorbs costs temporarily or offers free repairs. "Collision repair shops must document and justify all work to receive payment," he explained.
Arth also cautioned that prioritizing rapid repair turnaround might compromise vehicle safety and repair quality. (See also: Tesla’s Biggest Critic Recommends Buying on Recent Price Drop.)
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