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Growth Opportunities in Tesla’s Global Aftersales Strategy
Growth Opportunities in Tesla’s Global Aftersales Strategy
OTA Update Capabilities that Leverage in-car Data, a Fast-growing Mobile Service Fleet, and an Ultra-lean Physical Service Network Define Tesla’s Vertically Integrated Aftersales Service Delivery Model
08-Apr-2022
North America
Market Research
Description
Having delivered close to a million battery electric vehicles (BEVs) globally in model year 2021, Tesla is clearly leading the worldwide shift towards electric mobility. The company’s vertically integrated sales format that eliminates third-party intermediaries in the downstream automotive value chain has received a lot of press coverage. However, not much has been written about Tesla’s aftersales strategy, barring a few articles highlighting aspects that are by-products of the company’s convention-defying approach to vehicle delivery.
Frost & Sullivan has performed an extensive analysis of this relatively less-spoken-about aspect of Tesla’s automotive business and attempts to build a signpost of things to come, for both Tesla and other pure-play BEV start-ups during what is widely acknowledged as the decade of the xEV. This research identifies and thoroughly analyses the standout features of Tesla’s aftersales strategy, thereby uncovering valuable insights for both independent aftermarket participants and legacy OEMs foraying into the xEV space.
Research Scope
The study takes a global view, with the key markets for Tesla (North America, Europe, and China) discussed in detail. For these geographies, Frost & Sullivan offers an in-depth quantitative analysis of Tesla’s service infrastructural preparedness vis-à-vis its burgeoning vehicle fleet.
Drawing upon historical trends reported in company financial statements, the study briefly outlines Frost & Sullivan’s perspective on Tesla services’ anticipated gross margin trajectory in the short-to-medium term.
The study discusses key constituents of Tesla’s services and other revenues segment, including (but not limited to) its expanding mobile service network, telematics-backed usage-based insurance product, and over-the-air update capabilities.
The evolution of Tesla’s collision repair infrastructure is also analysed to help readers gain an understanding of what the future might have in store.
Additional revenue streams such as B2C service marketing contracts, B2B service subscriptions for independent aftermarket repairers, accessories portfolio, and battery end-of-life management are also discussed.
Research Highlights
Through extensive primary and secondary research, supplemented by an annual report study, Frost & Sullivan has gathered several crucial data points that were subjected to rigorous analysis to yield rich qualitative insights on an aspect of Tesla’s automotive business that has not yet become a prominent subject of market research titles. This study attempts to fill a gap in existing aftermarket research literature, thereby facilitating strategic decision-making by stakeholders in the EV aftermarket, in both the independent and OEM channels.
Key Issues Addressed
- What are the key differentiating aspects of Tesla’s approach to aftersales?
- How will Tesla’s profit orientation on vehicle service likely evolve in the medium term?
- How is Tesla addressing challenges inherent to the disintermediated vehicle and service delivery model?
- How are Tesla’s partnerships with other stakeholders in the aftermarket ecosystem evolving as its active fleet grows in size?
- How is Tesla leveraging connected vehicle technology to improve its OTA update capabilities and usage-based insurance products?
- How is Tesla monetizing proprietary repair information as the right-to-repair movement gains traction across the world?
Table of Contents
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on Tesla’s Aftersales Format
Growth Opportunities Fuel the Growth Pipeline Engine™
Growth Drivers for Tesla Service
Growth Restraints for Tesla Service
Key Growth Metrics, Tesla Services and Others Segment Business
Tesla’s Approach to Vehicle Aftersales—Highlights
Tesla Sales Trajectory—Historical Trends
Tesla Vehicles in Operation
A Snapshot of Tesla’s Services and Other Business Segment
Tesla’s Core Aftersales Operations—Business Model Canvas
Services and Others Segment Financial Metrics—Tesla Motors
Services Segment Financial Metrics—Tesla Motors
Tesla-owned and -operated Service Centers Versus Existing Industry Practices
Tesla’s Ultra-lean Physical Service Network—Global
Tesla’s Ultra-lean Physical Service Network—Global (continued)
Tesla Rangers—The Mobile Service Team Taking Workshops to Customers
Tesla’s Growing Mobile Service Network and Physical Service Assets
Tesla’s Evolving 3-pronged Approach to Collision Repair
Tesla’s Collision Repair Infrastructure in Important Global Markets
Tesla’s Usage-based Insurance Offering with Monthly Dynamic Premiums
Tesla’s Advanced OTA Software Updates in the BEV Industry
Tesla’s OTA Update Release History
Tesla’s ESAs
Tesla Service Subscriptions
Tesla’s Vehicle Accessory Portfolio
Tesla’s End-of-life Battery Management Initiatives
Growth Opportunity 1—In-app Purchases through OTA Updates
Growth Opportunity 1—In-app Purchases through OTA Updates (continued)
Growth Opportunity 2—Tesla-Authorized Repairs by IAM Tuners and Upgraders
Growth Opportunity 2—Tesla-Authorized Repairs by IAM Tuners and Upgraders (continued)
Growth Opportunity 3—Flying Doctor Services for EVs
Growth Opportunity 3—Flying Doctor Services for EVs (continued)
List of Exhibits
List of Exhibits (continued)
Legal Disclaimer
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Research Scope
The study takes a global view, with the key markets for Tesla (North America, Europe, and China) discussed in detail. For these geographies, Frost & Sullivan offers an in-depth quantitative analysis of Tesla’s service infrastructural preparedness vis-à-vis its burgeoning vehicle fleet.
Drawing upon historical trends reported in company financial statements, the study briefly outlines Frost & Sullivan’s perspective on Tesla services’ anticipated gross margin trajectory in the short-to-medium term.
The study discusses key constituents of Tesla’s services and other revenues segment, including (but not limited to) its expanding mobile service network, telematics-backed usage-based insurance product, and over-the-air update capabilities.
The evolution of Tesla’s collision repair infrastructure is also analysed to help readers gain an understanding of what the future might have in store.
Additional revenue streams such as B2C service marketing contracts, B2B service subscriptions for independent aftermarket repairers, accessories portfolio, and battery end-of-life management are also discussed.
Research Highlights
Through extensive primary and secondary research, supplemented by an annual report study, Frost & Sullivan has gathered several crucial data points that were subjected to rigorous analysis to yield rich qualitative insights on an aspect of Tesla’s automotive business that has not yet become a prominent subject of market research titles. This study attempts to fill a gap in existing aftermarket research literature, thereby facilitating strategic decision-making by stakeholders in the EV aftermarket, in both the independent and OEM channels.
Key Issues Addressed
- What are the key differentiating aspects of Tesla’s approach to aftersales
- How will Tesla’s profit orientation on vehicle service likely evolve in the medium term
- How is Tesla addressing challenges inherent to the disintermediated vehicle and service delivery model
- How are Tesla’s partnerships with other stakeholders in the aftermarket ecosystem evolving as its active fleet grows in size
- How is Tesla leveraging connected vehicle technology to improve its OTA update capabilities and usage-based insurance products
- How is Tesla monetizing proprietary repair information as the right-to-repair movement gains traction across the world
| Deliverable Type | Market Research |
|---|---|
| Author | pranav nair |
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Podcast | No |
| WIP Number | K75F-01-00-00-00 |