Tesla's Model Y is much cheaper to own once you consider its long-term cost
Tesla (Edited by NATA)
Tesla has triumphed in Kelley Blue Book's 2023 5-Year Cost to Own Awards, with both Model 3 and Model Y emerging victorious in the Luxury Electric Car and Luxury Electric SUV categories. This prestigious recognition highlights Tesla's commitment to delivering vehicles with low projected ownership costs, making them the ideal choice for discerning car shoppers.
The Growing Importance of Total Cost of Ownership
Considering the total cost of ownership is becoming increasingly significant for consumers when purchasing a new vehicle. Factors such as fuel, maintenance, insurance, and vehicle depreciation can vary greatly among different models, making it crucial to select a car that aligns with your long-term budget.
Closing the Gap: Price Parity Between EVs and ICE Cars
Electric vehicles have often been perceived as more expensive than their internal combustion engine (ICE) counterparts. However, Tesla's aggressive pricing has closed the gap and, with incentives, are equal to the ICE competition in some regions. As price parity between the two is closing, Tesla is demonstrating even greater cost advantages over time. Teslas offer numerous benefits, such as lower maintenance requirements and reduced environmental impact.
Tesla's Innovative Design Leads to Additional Cost Advantages
Tesla's ingenuity extends beyond creating powerful, eco-friendly cars. Their models, like the Model 3 and Model Y, are designed to minimize long-term ownership costs. With no need for oil changes, gasoline, or transmission work, Tesla owners enjoy substantial savings compared to traditional ICE cars.
As a result, Tesla's vehicles not only deliver luxury and performance but also offer impressive cost advantages in maintenance and operation. These awards further solidify Tesla's position as a leader in the luxury electric market.
With an increasing number of consumers considering electric vehicles, Tesla's success in the 2023 5-Year Cost to Own Awards highlights the brand's dedication to providing long-term value. As the gap between EV and ICE car prices narrows, Tesla's focus on cost-effective, innovative vehicles redefines the electric car ownership experience. Tesla's Model 3 and Model Y prove that luxury, sustainability, and affordability coexist, making them attractive options for car shoppers seeking an eco-conscious and budget-friendly choice.
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Tesla’s plan to brand its autonomous network of taxicabs has found an interesting little snag. The US Patent and Trademark Office (USPTO) has issued a “nonfinal office action” regarding Tesla’s application to trademark the term “Robotaxi” specifically in connection with autonomous electric vehicles.
This is an initial refusal by USPTO’s examining attorney and is very particular for autonomous electric automobiles. A separate trademark application by Tesla for the term “Robotaxi” as it relates to its upcoming autonomous ride-hailing service is still under examination and has not yet received a similar rebuttal.
Understanding the Refusal
A “nonfinal office action” means the USPTO has found potential issues with the trademark application, as stated, which prevents its immediate approval and subsequent granting to Tesla. Tesla now has a three-month period to file its counterarguments and address the USPTO's concerns.
If Tesla’s response satisfies the examiner, the trademark could be granted.
While the exact content of the office action isn’t detailed in the initial report, such refusals for terms like “Robotaxi” often occur if the USPTO considers the term “merely descriptive” or “generic” for the goods in question. In this particular context, “Robotaxi” could refer to any autonomous taxi vehicle.
Trademark law generally prevents the exclusive registration of terms that competitors would need to use to describe their own similar products. For a term to be trademarked, it typically needs to be distinctive and act as a brand identifier rather than just a descriptive name of the product’s class or type.
Separate Application for Ride-Hailing
Tesla still has a distinct, separate, and still pending application to register “Robotaxi” as a trademark for “transportation services, namely, autonomous ride-hailing services.” The criteria for trademarking a service can differ from those on trademarks for goods, and it’s possible Tesla may have more success securing the name for the service itself, which would allow them to brand the network as “Tesla Robotaxi.”
Why This Matters
Securing a trademark grants exclusive rights to use a brand name in conjunction with specific goods or services. This helps prevent customer confusion and to protect the brand identity.
If the refusal for the vehicle trademark becomes final, Tesla may be limited in its ability to exclusively name a good (specific vehicle) the “Tesla Robotaxi.” Other manufacturers could also potentially use “robotaxi” descriptively for their own autonomous taxi vehicles.
The ability to trademark “Robotaxi” for the ride-hailing service is arguably more critical for Tesla, as they’re working to establish a unique brand for their autonomous transportation network, which kicks off in Austin next month.
The USPTO’s office action won’t hinder Tesla’s ability to develop or deploy its own vehicles in June - instead, it’ll just impact how Tesla can brand the app and their vehicles, which could cause some last-minute delays if they have to rebrand.
Cybercab and Robovan/Robobus Trademarks
While Tesla is facing challenges with the broader Robotaxi term for vehicles, the company is also seeking to trademark “Cybercab,” “Robovan,” and “Robobus.” Securing a less descriptive name for the vehicle itself often has a higher chance of success with USPTO, as it is far more distinctive than a more general term like “robotaxi.”
Why Didn’t Tesla Do This Years Ago?
Tesla may have waited too long to file a trademark for the term “Robotaxi.” While the company has been discussing a self-driving fleet since 2016, the concept of autonomous taxis has gained a lot more traction in recent years — and competitors like Uber have also begun using the term.
We suspect there was some strategic timing behind these filings. Earlier versions of FSD — particularly those prior to V12 — may have lacked the progress needed to support Tesla’s robotaxi ambitions. Filing for a trademark that isn’t actively in use or about to be used can make it harder to defend or retain.
Moreover, while the idea of autonomous vehicles has been around for years, a clearer public understanding of Tesla’s specific plans has only emerged over the past 18 months. Filing too early can trigger speculation long before the company is ready to reveal details.
Ultimately, whether Tesla secures the rights to “Robotaxi” remains uncertain — but trademarks like “Cybercab” and “Robovan” seem much more likely to stick.
One of Tesla’s greatest weaknesses, as it has quickly become one of the world’s most ubiquitous cars on the planet has always been service. Escalating issues to managers and sometimes even reaching a Tesla Service employee can be a total coin flip, depending on your Service Center.
Tesla is continuing its push to integrate AI across its customer support channels in an effort to improve customer service. According to Raj Jegannathan, Tesla’s VP for IT, AI Infrastructure, Apps, Infosecurity, and Vehicle Service Operations (that’s a lot), Tesla is launching a pilot program for a new AI designed to improve customer interactions with Service.
Tesla Service’s new AI Agent detects comms delays, monitors sentiment, & auto-escalates to leaders. Starts tomorrow at 10 pilot locations. In 2 weeks, type “Escalate” in ‘message center’ to reach managers. Guardrails in place to prevent abuse. We’ll keep improving!
At 10 pilot service locations, this new AI agent will begin working behind the scenes at Tesla Service, to help with customer communications. It will provide three key features:
Detect Communications Delays: The AI will actively monitor service interactions to identify potential delays in communication or progress. These are often a key pain point for customers who reach out to Tesla Service and don’t receive a response for several days, as Service has nothing new to add. The AI can now step in and let the customer know Tesla is still waiting on parts or something else.
Monitor Customer Sentiment: By monitoring the tone and content of the messages between the customer and Service agents, Tesla will be able to identify situations where a customer might be dissatisfied or facing difficulties.
Auto-Escalate: If either a communications delay or negative sentiment is detected, the AI can automatically escalate issues to human managers for review. This helps to address problems before customers need to seek escalation themselves or become upset about an issue.
Customer Escalation Requests
Alongside the new AI tool, Tesla is also introducing a more direct way for customers to get higher-level attention. According to Tesla, within the next two weeks, customers can simply type “Escalate” in order to have their issue routed directly to management.
Raj’s team is currently working on implementing guardrails to prevent abuse, but this will soon make its way to improving Tesla’s service offerings. We’re glad to see Tesla taking steps to identify and correct deficiencies in the process - it has always been a sore tooth for Tesla in the last few years.
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