Service has been a thorn in Tesla's side as long as we can remember.
Tesla's Q4 Earnings update was published yesterday. It indicates that the company almost doubled its Mobile Service fleet in 2019 alone. The report states:
“Our Mobile Service fleet almost doubled in 2019 to 743 vehicles, and we continue to open new service locations globally. As customers are increasingly buying their Tesla vehicles online, vehicle deliveries grew 50% while our retail footprint remained unchanged with a stable total store count across 2019."
As Tesla's global fleet of vehicles continues to grow, there is obviously a growing need for service centers. However, Tesla also repairs its vehicles via its Mobile Service division, which travels to the customers to fix their vehicles at their homes or offices. This situation makes Tesla service convenient for owners who are able to take advantage of it. Moreover, it's less expensive for Tesla, and easier for the company to ramp up.
Rather than acquiring retail space, potentially building out a place of business and hiring multiple employees, etc., Tesla can simply add vehicles to its mobile service fleet. For each mobile service vehicle, the automaker needs to put together a stock of tools and supplies, then hire a driver/repair technician to pilot the vehicle and service Tesla cars.
While Tesla's mobile service division grew by some 81 percent year-over-year in 2019, its physical store and service locations also showed growth. According to Tesla's report, store and service locations are up 13 percent on the year.
With two positive financial quarters in a row, perhaps Tesla will now have the ability to ramp up its service division even further in the near term. As the Model Y is set to come to market soon, continued growth will become even more critical.