Tesla Model S Replacement Parts Getting Cheaper Due To Economies Of Scale

Tesla Service Center

AUG 7 2015 BY MARK KANE 39

Tesla Service Center

Tesla Service Center

Tesla Service Center

Tesla Service Center

Starting in early July, some Tesla Model S owners noticed a price drop on parts at Tesla service centers.

That’s important because prices were high, and the drop is significant.

One of the owners (Linux64 – Tesla Motors Club) stated that his estimate to repair the damage came in under $10k, a massive drop from the mid $20k he believes it would have cost just 30 days prior!

“A week ago, a jackass was backing out of a parking spot and hit my P85D on the rear drivers side wheel and quarter panel.

The Tesla certified body shop in town now has my car, and just finished the estimate. The owner told me that about 30 days ago Tesla dramatically slashed the price of almost all parts to the tune of 66% reduction in cost. The repair shop which also handles Audi aluminum repairs along with other high end autos said that before the cost of Tesla parts were in line with Mercedes, Audi, BMW, but now Tesla is much cheaper. He said some things are still the same price, for example a 21″ wheel is still $1500, but overall most parts saw a price cut. One part he gave me before and after prices for were the bumper cover (“the most common part needing replacing” he said) which went from $1200 to $320.

My estimate to repair the damage came in under $10k, whereas 30 days ago he said it would have been mid 20s.”

According to Autoblog, a Tesla Motors’ representative says the cause of the falling prices are due largely to economies of scale. Tesla is producing more cars, so parts become cheaper.

Source: Autoblog

Categories: Tesla

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39 Comments on "Tesla Model S Replacement Parts Getting Cheaper Due To Economies Of Scale"

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Nix

The wheel replacement price didn’t go down because Tesla doesn’t make their own wheels. They contract those out.

drpawansharma

Thank god they make their own batteries.
I wonder how much the replacement costs of the battery have fallen.

Pushmi-Pullyu

Tesla won’t be making battery cells at the Gigafactory until next year. They’re currently still buying them from Panasonic.

Bonaire

Haven’t the 12V batteries been more trouble than the main pack? It’s based on how the 12V is cycled daily – I’ve seen someone post a voltage chart of the 12V charge-discharge cycle on a daily basis and it goes through a lot of big voltage swings (based on how it is used by the 12V subsystem).

Pushmi-Pullyu

I’ve certainly seen reports that some Model S’s had a 12v battery failure, yes. I have no idea how frequent that problem is or was. Hopefully that was a problem which occurred primarily in early production units and has since been fixed or at least somewhat alleviated.

Rick Danger

Tesla never ceases to impress.
How many times must Elon Musk put his money where his mouth is for all the haters to sit down and shuddup??

David Murray

The sad part is, the haters do their hating for emotional and not logical reasons. Even if a Tesla Model-S cost $5,000 and could travel 1,000 miles on a charge, there would still be haters. Some people just prefer things they way they have always been, and some even like to see black smoke coming out of a tailpipe and a lot of noise when they step on the accelerator.

Reminds me of Grandpa Simpson

Pushmi-Pullyu

It’s not just people hating “green” tech in general and Tesla Motors specifically for political or emotional reasons.

There is also a greed motive. Tesla’s stock is quite volatile, which attracts a lot of short-sellers bashing Tesla all over the Internet in the hopes of driving down Tesla’s stock price.

So we Tesla enthusiasts need to say, at every opportunity, GO TESLA!

I wonder if he can get parts for his Stretchla now?

http://cafeelectric.com/stretchla/

Stimpacker

Well, I won’t be paying for the repair cost but I’ll be paying for insurance.

Are there any reports of insurance premiums going down? Even my lousy LEAF costs more to insure than my fancy V8-equipped car. That’s one more cost of EV ownership that nobody tells you.

DonC

Likely this has nothing to do with EV ownership. The clue is that your ICE is “fancy”. Known fact that expensive luxury cars are less expensive to insure than standard cars. They might cost more to repair but they don’t get driven many miles and they are rarely in accidents.

I know I got a discount for the electric drive.

pk

When my 2010 Subaru Legacy was totalled I replaced it with a 2015 Leaf. Exactly the same premium from my insurance company.

krona2k

My LEAF insurance was less than my previous car, a Honda Civic IMA hybrid. You should be able to find a good deal on insuring a LEAF.

jelloslug

I think it’s more to do with your choice of insurance company and less to do with you car. My Leaf was one of the cheapest new cars that I ever insured.

DonC

Not sure how this is all that positive overall. $10K seems exorbitant for a parking lot fender bender. Reminds me of a 400% markup and a 50% sale reduction. You still end up paying more than is reasonable.

I wonder if Ford will have the same super expensive repairs for the F-150?

Lustuccc

I rarely expect DonC to have a positive opinion of electrics.

Slashing prices like this is certainly not the behavior of a company in financial trouble.

Big Solar

+3

Slashing prices to increase sales is the standard for companies in financial trouble.

LusTuCCC

Not for spare parts that we are forced to buy.

pjwood1

Maybe Tesla is listening on this one. Owning one out of warranty has a thicker cloud over it, right now, than any other marquee. Lower parts prices are a definite way to help change that. Next will be telling pro’s, away from Tesla, what the heck they need to do to install them.

Philip

So, by your logic Counter-Strike Cat, Lower parts prices are a sneaky incentive for Tesla owners to rush out and have more accidents, or book in for services they don’t need!

That Elon bloke is surely on to a winner here! Get a grip!

Pushmi-Pullyu

Counter-Strike Cat said:

“Slashing prices to increase sales is the standard for companies in financial trouble.”

So, by the same (il)logic, if an auto maker raised prices on replacement parts, that’s a sign the company is doing well?

If there was any doubt you’re a full-fledged Tesla basher, C-S Cat, you just removed it.

Back in the early days of Tesla Roadster production, one sign that Tesla wasn’t doing well financially was charging “premium” prices for accessories, like $1000 for a charging cable. It was no secret that, at the time, Tesla was doing this in an attempt to stop losing money on producing the Roadster. Overall, Tesla made no profit on that model.

This is exactly the opposite situation. Significantly lowering prices on replacement parts is a strong sign that Tesla Motors is financially very healthy.

“Tesla Motors is financially very healthy”

ROTFLMAO! Tesla needs no money. It’s a charity of government and Elon worshippers. Tesla is losing half a billion dollar each quarter. But not a problem. Tesla lovers, send your checks now.

Pushmi-Pullyu

Poor “See Through”. It gets harder and harder to get anyone to believe your Tesla bashing FUD, doesn’t it?

BTW, how much money did you lose on the last Tesla stock short squeeze? 😀

jelloslug

Sounds like you have not had a car accident repaired in a long time.

Pushmi-Pullyu

Just what I was thinking. A $10k fender-bender repair isn’t at all out of line for a $100k car. Suggesting it’s inflated indicates he hasn’t ever had to pay for a fender-bender on a luxury car, or at least not for the past few decades.

ModernMarvelFan

Maybe this has something to do with the recent metal fab company that Tesla bought…

Cut out the layer and now fab the sheet metal in house…

Decrease parts cost so the insurance premium would be lower to add to “lower cost of ownership experience”.

Rick Danger

Sounds like a genius move to me. Sounds like a CEO and a company that cares about their customers as much as they do about profits.
So tell me, Counter-Strike Rat, how do you put a negative spin on this? “Couldn’t afford to pay suppliers so they were forced to do it in house?”

Mark

My 2014 Model S is $8 more a month to insure than my 2002 Altima was. And that’s with total replacement clause!

Pushmi-Pullyu

I’ve read anecdotal reports that annual maintenance on the Tesla Model S costs significantly less than maintenance on comparably priced gasmobiles.

With this price reduction on replacement parts, it looks like maintenance and repair costs will be even lower, making Tesla even more competitive.

GO TESLA!

ffbj

it is the logical extension of the superiority of the electric car in general terms and the maker of the best electric cars, Tesla, in specific terms.

miggy

Well done to Tesla for doing this, they could have just milked the customer for all their worth just like the other car companies do, but no, once again Tesla took the high ground.

ffbj

I think the insurance is excellent at pricing things though sometimes slow to adapt. Gradually as repair cost analysis shows that electric cars, having fewer expensive parts to damage, will stack up well against both ice and hybrid vehicles.
Of course body damage will be similar in price to repair while special materials will cost more. Also hybrids and ice will more often total out.
So I would predict that some smart insurers would actually offer better rates to ev drivers whose cars are less costly to repair and who are perhaps safer drivers in general.

OB1

This might fall inline with the stated goal of tesla to have its service department be a non money maker.

Pushmi-Pullyu

Yes, it certainly appears that way! One reason I am a Tesla enthusiast is that they really do put their money where their mouth is.

As the Model S gets older and cars begin to fall out of the 8-year warranty, the price for replacement parts will become much more important to customers.

But I have to wonder if there is some connection here with Tesla starting to sell used (“CPO”) cars. Do those come with a warranty? Or perhaps just a one-year warranty? Owners who have a used Tesla that’s not covered by manufacturer warranty will be very glad for this price reduction. That could very well impact the demand for used Model S’s.

Yes Don C. my lariot F 150 cost a lot to fix when it injectors failed. I should have received a new engine but Ford would not replace engine. Yes it was under warranty but the failure should have never happened at 50,000 miles. However in 2009 the weekly cost of fuel adds up to about 15,000 dollars or more in 5 yrs

“thee failure should have never happened at 50,000 miles”

LOL! This is still nothing compared to the number of Tesla drive unit failures. You would be on your 6th drive unit and 3rd battery pack at 50000 miles.

Pushmi-Pullyu

Some troll posts are too Ludicrousâ„¢ to even bother refuting. ::rolling eyes::