Tesla's Dramatic Decline in Recalls: From Millions to Thousands

Tesla has improved their vehicle recall rate drastically, accounting for only 2.7% of all recalls in 2023 so far

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At Tesla's Investor Day 2023, a promise was made to enhance quality control and production standards. This year's sharp decline in recalls proves Tesla's fulfillment of that promise. Such commitment is vital, especially for an automaker that has always been in the spotlight, not just for its innovation but also for its challenges and the attention its CEO draws. A recent article by Barron's highlights that Tesla's recalls have seen a significant drop in 2023 compared to 2022.

Reduction in Recalls

While Tesla recalled 3.8 million vehicles in 2022, the figure stands at around 439,000 for 2023 so far, potentially setting the pace to hit about 550,000 by the end of the year. This suggests a marked improvement in Tesla's quality control and production standards.

The nature of Tesla recalls also distinguishes the company from others. Many of Tesla's recalls, like the recent one related to a warning light for detecting low brake fluid on Model X, are rectified through over-the-air (OTA) software updates. These OTA updates are efficient, cost-effective, and less disruptive for customers.

Elon Musk has emphasized the inappropriateness of the term "recall" for OTA updates, pointing out its anachronistic nature. In February, he posted on X: The word "recall" for an over-the-air software update is anachronistic and just flat wrong! As more manufacturers integrate advanced technology, we might see a shift in understanding and categorizing recalls.

Comparison with Other Automakers

It's essential to place these figures in context. The same Barrons chart indicates that other leading automakers have had their fair share of recalls. In 2023, major U.S. automakers collectively recalled over 16 million vehicles; in 2022 this figure was almost 19 million. Hence, when compared proportionally, Tesla's recall rate was higher than average in 2022 but considerably lower than the competition in 2023.

Given the emerging nature of the electric vehicle market and Tesla's prominence as a frontrunner, its operations have enhanced scrutiny. Recalls make headlines, not merely because of potential safety concerns but also because of the changing dynamics of the automobile industry with the advent of EVs. Both consumers and investors must understand recalls within this evolving context.

Tesla's proactive approach and OTA software updates set it apart. The declining number of recalls indicates Tesla's commitment to improving quality and safety, aligning with the company's goals outlined during its Investor Day event. Seeing how terminology and perceptions around recalls adapt will be interesting as the industry evolves.

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Tesla Improves Wrap Services: Switches to Vinyl, Cuts Prices Drastically, Adds New Colors and Expands Availability

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After canceling the in-house wrap program for the Cybertruck last month, Tesla has reintroduced the program with a lot of changes. Let’s take a look at the original program, then we’ll dive into what’s changed.

Tesla began the wrap program for the Model 3 and Model Y in the fall of 2023. With the arrival of the Cybertruck, Tesla launched Matte Black and Satin White options for the Cybertruck and later added 11 more colors.

Tesla initially offered high-quality PPF (Paint Protection Film) wraps, which protect the paint in addition to changing the color of the vehicle. PPF is thicker than traditional vinyl wraps, but the material costs more and is more time-consuming to apply.

Tesla’s updated program switches away from PPF wraps and now offers traditional vinyl wraps at a cheaper price. This makes Tesla’s wrap service more comparable to third-party installers.

Correction: We initially reported that the new wrap program offered PPF rather than vinyl and that the program was only available for new deliveries.

New Wrap Prices

First things first - the price of the wraps has dropped considerably, mostly due to the change away from PPF. While these prices are still a little more expensive than what you could find at a third-party location, you have the advantage of getting it directly from Tesla.

Tesla initially offered 11 wrap colors, but that selection has now been reduced to eight per vehicle. Interestingly, the color options vary by model—Model 3 and Model Y owners have their own distinct palette. The Cybertruck also boasts its own unique set of colors, though unfortunately, the popular Satin White option is absent from its catalog.

Of course, the ever-popular Matte Black is still available, along with a fairly unique set of other vivid colors.

New Locations

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When the wrap program launched, it was limited to just three locations in California and one location in Texas. That meant that unless you were taking delivery at West Covina, Oceanside, Costa Mesa, or Santa Clara, you’d be unable to get a first-party wrap done by Tesla.

Under the new program, Tesla is offering wraps out of all the original locations and adding Seattle, Washington. What initially seemed like Tesla scaling back its wrap service has turned out to be them making it more affordable and efficient. While the switch to vinyl may disappoint some owners, in reality, a lot of owners probably didn’t know the difference between PPF and vinyl, making Tesla’s service seem disproportionally more expensive.

No Longer New Purchases Only

While the original wrap program was constrained to new vehicle purchases—you can now have Tesla wrap a vehicle that’s already been delivered. Paint damage and scuffs can impact the installation of wraps and require additional time to smooth out the vehicle surface, and most third-party installers charge additional fees to prepare the surface.

Tesla doesn’t appear to be charging any additional surface prep fees at this time and is able to install on any Model 3, Model Y, or Cybertruck that’s been delivered after 2023.

Either way, with cheaper wrap options, Tesla is now directly competing against third-party wrap shops. While it’s still a bit more expensive than you’d find elsewhere, it also comes with a level of care and precision from technicians intimately familiar with your vehicle.

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Tesla Increases Price of Model S; Starts Offering Free Lifetime Supercharging

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For the first time in quite a while, Tesla has increased the price of one of its vehicle offerings. The Model S Long Range and the Model S Plaid have both received a hefty price increase. However, not all is bad - as Tesla also added a new benefit for buyers.

Price Increase

The price increase for the Model S is $5,000 - currently only in the United States. This price increase will likely impact other markets, including Canada, in the coming days.

The Model S Long Range now starts at $79,990, while the Model S Plaid now starts at $94,990. The Model S and Model X now have the same starting price. Interestingly, that’s also the same pricing point for the Cybertruck AWD and Cyberbeast Trimotor non-Foundation Series. 

The vehicle configuration does not appear to have changed, so the new pricing is simply an increase rather than the addition or removal of features. Tesla previously cut the price of the Model S and Model X by 15% in 2023, so this could simply be an adjustment to ensure that the vehicle pricing stays in line with inflation and other factors.

Free Lifetime Supercharging

For those on the fence about ordering a Model S, Tesla has brought back Free Lifetime Supercharging when you order a new Model S on or after December 13, 2024. As always, Free Lifetime Supercharging is restricted to the buyer’s Tesla account and to that specific vehicle. It cannot be transferred to another vehicle or another owner after ownership transfer. It’s worth noting, that it also doesn’t exclude the owner from receiving Supercharger idle fees or congestion fees. There is currently no end date for this promotion.

There are currently no changes to the Model X, neither a price increase nor the addition of Lifetime Superchargering. However, when Tesla makes changes to one of their premium vehicles, it usually affects the other one as well. So be on the lookout for potential changes to the Model X offering in the coming days.

We’ve seen Tesla value Lifetime Supercharging at $5,000, so this falls in line with the price increase we’re seeing. It’s possible that Tesla will begin to bring back Lifetime Supercharging as a perk for buying into their more premium Model S and Model X cars, or this could be another temporary promotion to get buyers who are on the fence to go ahead and make their purchase while this promotion lasts.

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