Tesla vs Toyota: Servicing & Repair

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I'm trying to understand, with EVs having a higher penetration over time, and with the potential DTC model like the one Tesla is offering, what will the impact be on all other constituents of the ecosystem. In discussions with insurance executives and former Tesla employees, they indicate that Tesla appears to be more expensive in terms of repairing the car than legacy ICE vehicles. I'm keen to understand, firstly, why this is the case, and secondly, what is Tesla doing at its repair facilities to reduce these costs and potentially lower the insurance premiums on its vehicles. That's how I'm framing this interview. Perhaps the best way to start, given your background with both Tesla and legacy OEMs in repair and servicing, is for you to walk me through the step-by-step servicing and repair process for both. If you come to a servicing or repair store, one for Tesla and one for Toyota, and two cars arrive, can you run me through the step-by-step process of how the cars are serviced and repaired?

Collision repair on an EV, especially Teslas, is influenced by Elon Musk's principle that the best part is no part. Minimizing the number of parts means fewer parts are involved, which impacts the parts that are replaced. It's like a double-edged sword because minimizing the number of parts means that for something like the rear end of a Model Y, which uses a gigacasting approach, they've reduced it from 175 parts to one giant casting. People might question the repairability of such a design. However, they develop parts specifically for repairs depending on the extent of the damage. They won't replace the whole casting but will have sections that can be replaced.

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I'm trying to understand, with EVs having a higher penetration over time, and with the potential DTC model like the one Tesla is offering, what will the impact be on all other constituents of the ecosystem. In discussions with insurance executives and former Tesla employees, they indicate that Tesla appears to be more expensive in terms of repairing the car than legacy ICE vehicles. I'm keen to understand, firstly, why this is the case, and secondly, what is Tesla doing at its repair facilities to reduce these costs and potentially lower the insurance premiums on its vehicles. That's how I'm framing this interview. Perhaps the best way to start, given your background with both Tesla and legacy OEMs in repair and servicing, is for you to walk me through the step-by-step servicing and repair process for both. If you come to a servicing or repair store, one for Tesla and one for Toyota, and two cars arrive, can you run me through the step-by-step process of how the cars are serviced and repaired?

When you compare an ICE vehicle like a Toyota with a Tesla, you notice significant differences in component pricing. For instance, you might expect a side marker camera to cost around $500, but on a Tesla, similar cameras on the fenders are priced at about $85, which is surprising since the same part on a Toyota could easily cost $400. The pricing strategy for parts is very different.

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Basically, you're saying that if both a Toyota and a Tesla take on the same type of rear-end damage, for the Toyota, I would need to bring in brand-new parts for replacement. Whereas for the Tesla, the parts are designed specifically for collision replacement. Could you clarify this difference for me?

One major difference in the development of Tesla vehicles compared to other manufacturers is that everyone is involved from the beginning. Executives from service, collision, design, and other departments are all at the table during the design phase of any new vehicle model. They work together to ensure the vehicle is not only efficient and productive in manufacturing but also repairable.

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