That is all true if you are repairing an internal combustion power train. A Tesla power train has less than 20 moving parts. There are no spark plugs, belts, filters (except for AC), exhaust system, muffler, alternator, coils, the list goes one. There is nothing to look at under the car except for the bottom of the battery. I don’t think a lot of people appreciate how different a BEV is from and ICE. With the former you are much more likely to need someone with the training of the Geek Squad than a traditional mechanic.
The question is what company is more likely to weather such challenges? I don’t think folks recognize how revolutionary Tesla is trying to be. It goes well beyond not having dealers and dependence on remote repairs. The legacy carmakers sell many different models with major model design changes every 4-6 years. Tesla builds a few models with major structural changes limited to improvements in the battery. Models are updated via software/firmware.
Legacies spend a lot of resources doing cosmetic redesigns, since if cars look dated there is more incentive to buy a new one. Tesla spends those resources writing better programs and adding features via software. Stuff like this helps keep Tesla’s profit margins high.
BYD EBIT margins are reported to be about 4%, which I bet are higher than the EV margins of other legacies still trying to juggle ICEs with their EVs. Tesla’s EBIT margin in 2022 was 16.7%. Which company do you think is best able to survive a price war with the Chinese?
With Tesla the future represents a valuation challenge, a threat to its stock price. With the legacy car companies the threat is existential.
I think Tesla is on their 3rd or 4th battery design for cars. I’m not sure how different the batteries are in the powerwalls and grid batteries.
They started with the 18650 form factor (like in laptops) in the Roaster and Model S/X, then went to the 2170 in Model 3 and Y and this includes batteries from Panasonic and Catl (LFP chemistry). And now they are just starting, or soon to start with the 4680 format which will also be arranged as part of the car structure.
So, yeah, the first try was pretty good. But they’ve moved on since then.
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Tesla has both mobile service and service bays at their service centers. I imagine they try and balance what service gets done on site or via mobile based on the complexity of the job, urgency, tools & expertise needed and distance to the customer etc. Just like other businesses, when doing mobile service they probably route and schedule one tech to do nearby jobs.
They do indeed. Last time the Tesla tech came to my driveway, I spoke to him briefly. He was installing a small component (a filter for electronic noise) under the passenger seat to correct a recall of some sort. Took him about 5 minutes to complete the job. I asked him how many he will do that day and he said “about 20 to 25 depending on traffic”. Seems to me that net-net it is a lot more efficient for one technician to drive to 20-25 nearby locations than for 20-25 vehicles to ALL have to drive to a service center, schedule an appointment, register at the service bay, wait for their car, etc.
As an aside, the car itself told me about the fault, and the Tesla app had a “one button” way to schedule the fix for it. Never seen such a thing with any other auto manufacturer!
There is the suspension. Inspecting and repairing that is considerably easier with a lift. Yes, it can be done lying in your back or squatting beside the car. But doing that makes the job much harder, more physically demanding, and more likely to be done poorly.
And given the dearth of moving parts in an EV, it’s one of the few things that is just as likely to have problems as an ICE.
People who say mobile repair is the future have never worked on cars. Use the repairsmith.com link up above to get a free quote for work on your vehicle.
I work on my car all the time. In fact I rarely take it into a garage and I am completely rebuilding my 1974 Jeep CJ5 from the bottom up. All at my home without a lift. Also Tesla does it with all their vehicles also so to say it can’t or isn’t done is just not dealing with reality.
the Repairsmith was just to show that it is being done. They are not the only ones out there and I am sure if you google mobile auto repair in your area you will find people doing it in your are area also.
Having finished my rant, there is likely a place for mobile repair. There are a number of repairs - even on an ICE - that are quite doable without a lift and in a parking lot or driveway. And since an EV does lack the complex machine that is an internal combustion engine and transmission, a large portion of the remaining types of repairs could probably be done fairly easily on a mobile basis. Mobile repair could also serve as a bit of triage - actually getting hands on with a vehicle to identify if the issue is one that could reasonably be repaired in the field, or if it makes more sense to bring the car in to a shop setting.
And for some folks, there is a convenience factor. If I can get some minor repairs or maintenance done in the parking lot while I am at work, that could be worth a premium price. No hassle of dropping the car off, getting transportation to somewhere else, then getting back to the car. For about 10 years, I worked a block away from a good independent mechanic. I could drop my car off and walk the block to work. That made getting work done pretty easy. I miss that convenience.
This is a remarkable chart. Tesla is approaching Toyota in total car sales in California. Tesla is selling almost as many luxury EVs as Toyota’s entire lineup in the nation’s bellwether car buying state.
The new CEO at behemoth Toyota is coming out aggressively into EV market. They are way behind but to be pursuing this market now with a vengeance. If the new Toyota EVs have the same quality and longevity of their IC vehicles; lesser financed EV makers will be crushed.
The Japanese automaker released its first electric vehicle, the bZ4X SUV, in China this past October.
However, Toyota has struggled thus far to gain any meaningful traction, selling only 3,844 EV models through January, a fraction (0.25%) of its overall sales in the country.
In February, Toyota slashed prices to boost sales and remain competitive in a rapidly evolving Chinese auto market by 15%, or 20,000 RMB ($4,300). The move came after Tesla and other EV leaders reduced prices in the region earlier this year, creating a wave of discounts in the industry.
The automaker introduced its second fully electric model from its bZ lineup, the bZ3 electric sedan, in October. The electric sedan is generating attention after earning over 5,000 orders on its first sales day.
Toyota plans to bolster its lineup further after unveiling two new fully electric models Tuesday to join its lineup, including a sport crossover and SUV designed for families.
While charging my car today, I looked up efficiencies of EVs and found a list (from the UK) of nearly all of them. The Toyota offerings are among the least efficient ones available. That means they get less range out of their battery (or need bigger batteries) than most other models. I suspect they won’t be making their big push in the USA until they make more efficient EVs.
There are a lot of folks in the US who should only care about enough range to get to work and back with a decent cushion. If Toyota can deliver a car cheaply enough that also meets that need, they could get a foothold in that end of the market.
That’s definitely true. But that isn’t how marketing works. If each vehicle has a 65kWh battery in the car (say ~$12k battery cost), but one brand (say, Honda) advertises 265 mile range, and Toyota advertises 205 mile range, which one do you think consumers will choose?
The car was nice to drive…based on the 15 minute test drive…probably because I’ve had 6 other Toyotas. But the EV specs are not that great (i.e. efficiency) Didn’t need a car that big either. We were waiting on the smaller Tesla but had to get a car because the catalytic converter was stolen on our older car.* Bought a Chevy Bolt which is nice enough and the ~size we wanted for a 2nd car. (Other car is a Tesla M3)
Note. There is a 6 month wait to get a replacement catalytic converter and the car is unusable and unsellable during that time.
But I don’t think that is the situation here. At least that’s not what I was contemplating in my response. I was thinking more along the lines of a car that has, say, a 125 mile range and costs 25k, vs a car with a 250 mile range and a 35k price tag.
It sounded to me like Toyota has something with a somewhat shorter range available that could make a good city car. If that car were priced right and had the traditional good Toyota quality and ease of service, it should sell pretty well.
As to marketing, the commercial kind of writes itself: Two ladies talking over coffee. Did you see my husband’s new electric car? I did! It looks really futuristic. It is. But I can’t figure out how to play a video to keep the kids entertained n the back. And do you know how much he spent? (Whispers in friend’s ear. Friend gets shocked look.) We just bought a new Toyota [some city oriented name]. It was only 25,995 AND it’s got an easy to use entertainment system for the kids. But doesn’t it only go 125 miles on a charge? Yes, but when do I need more than that? I can get to work and back during the week, and drive the kids all over the place on the weekends. All I have to do is plug it in every night and it’s ready for the next day. And if I miss a day, I can charge it at work or while I’m shopping. Couldn’t be easier.
[Voiceover] Toyota cityish-name. All the range you need and easy to drive, for just 25,995.
–Peter <== clearly an accountant and not a marketer
No rental for that long unless you have special coverage. They gave an estimate, minus my deductible and sent me a check. Not only that the dealer has to store the car while on the waitlist and I must maintain insurance while at the dealer since it is not really “in storage” as far as the insurance is concerned. I could have saved ~$100 on DMV registration by registering as PNO (planned non operational).
I should have expressed the point in dollars instead (for the accountants out there). If Honda (say) can sell a 125 mile range EV for $23k and Toyota can sell the equivalent 125 mile range car for $25k, which will people buy? (That’s the other way of saying that Honda can get 125 mi out of a $4k battery and Toyota can get 125 mi out of a $6k battery due to their lower efficiency.)
