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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It has been a long wait for FSD for European customers, many of whom paid for the feature years ago on now legacy hardware. While the FSD transfer program has come and gone multiple times, there’s something to be said about having it available in North America, where it can be used, and in Europe or other countries, where it still just remains the same as Enhanced Autopilot (differences between Autopilot, EAP, and FSD).
FSD Transfer is a nice goodwill gesture from Tesla that in theory doesn’t cost them anything. Instead, it keeps customers, especially those who have been waiting for years, loyal and happy. It also incentivizes them to upgrade to a newer Tesla with HW4, where FSD will hopefully be achieved.
In a reply to a post on X, Elon agreed with the suggestion that offering FSD transfers in Europe would be a fair solution for those who have already purchased FSD but can’t use its capabilities.
FSD Transfer directly addresses a growing concern for many long-term European Tesla owners. Thousands of customers purchased the full package, often many years ago, with the expectation that FSD would eventually be capable and approved for use. However, the reality is that FSD, even as an advanced driver assistance system (ADAS), continues to be pushed back in Europe.
Without the transfer program, it's a difficult choice: either throw away your original investment in FSD and pay for the package a second time (FSD price history), or subscribe to it in the future.
Offering FSD transfers is a good way for Tesla to meet them halfway. It's a difficult situation, and one that’s being hindered by processes beyond the control of both the customer and Tesla. However, a transfer helps both parties. Tesla sells another vehicle, and the customer gets to keep FSD.
When Will it Be Available?
Based on how FSD transfers have worked in the past following Elon’s announcements, this feature is likely to become available for a limited time period in the coming days or weeks. If it happens, we should expect an announcement from Tesla Europe on X and emails being sent out to Tesla customers.
Once the program is in place, all you need to do is complete your vehicle purchase and then inform your Tesla sales advisor that you’d like to transfer FSD. You don’t even have to sell or trade in your old Tesla; FSD will simply be removed from it as a feature.
Hopefully, Tesla enables FSD Transfers for everyone, regardless of region. It should be an ongoing offer until at least FSD is approved in the given country or region.
The introductory price for Tesla’s Robotaxi Network has finally been updated. In a post on X, Elon Musk confirmed that the new fare would be rolling out to complement the new Robotaxi geofence expansion.
This change marks the first adjustment to Tesla’s fares since the initial $4.20 launch price 23 days ago. While the price increase may seem significant in terms of percentages, when compared to other options in the ride-hailing area, it is still drastically cheaper.
But the price is now a princely $6.90, as foretold in the prophecy 😂
Robotaxi currently operates on a simple, flat-rate model. The new $6.90 fare gets you a ride to anywhere within the recently expanded geofence.
So far, this is the opposite approach compared to other services, such as Waymo or traditional ride-sharing options like Uber and Lyft. All these services use dynamic pricing based on distance, time of day, and demand. A comparable trip on any one of these services could cost anywhere from $30 to $65, and potentially even higher during peak hours.
That doesn’t even include the tip fees for human drivers either - another win for Robotaxi (can you tip a Robotaxi?).
Even with the adjustment, the flat $6.90 fare remains less than half the price of a typical competing ride, making Robotaxi the most affordable point-to-point transportation option in Austin, aside from mass transit, for now.
A “Maturing” Service
The price change, moving from one meme-worthy number to another, is a sign that Robotaxi is finally graduating from its initial pilot phase. Following the first major expansion of the service area, this adjustment is a logical next step towards finding a more sustainable flat price.
While the new fare is a 65% increase over the old fare, the key takeaway is that it is still far cheaper than other options, and still just as meme-worthy. Tesla is aiming to have its early access riders complete as many rides as possible during these early months, and this pricing is still very reflective of that.