Tesla Faces Scrutiny Over Handling of Defective Parts and Repair Charges

Tesla, the American automaker, is under scrutiny following a Reuters investigation that reveals its alleged concealment of defective parts and charging customers for repairs despite knowing about the faulty components. The company has been accused of blaming customers for vehicle abuse and prior damage to suspension components, denying responsibility for part failures, and refusing warranty coverage for repairs.

The investigation highlights a case involving a UK customer who experienced a front-right suspension collapse in a newly purchased 2023 Tesla Model Y with only 115 miles driven. Despite the need for extensive repairs costing over $14,000, Tesla refused warranty coverage, attributing the issue to “prior” damage. Similar instances of suspension problems affecting newly produced and relatively young Tesla vehicles are also discussed.

Another incident involves a Model 3 owner in the United States, whose front wheel reportedly fell off while driving on Autopilot at 60 mph. Although the Reuters report does not specify whether the car was repaired, it suggests that customers, in some cases, were left to cover the costs of repairs for suspension failures.

Between January 2021 and March 2022, Tesla replaced upper control arms on approximately 120,000 cars globally, with the company covering most repairs under warranty. However, around 31,000 owners of older cars with suspension failures had to pay for repairs out of pocket. In Norway, former Tesla service managers and technicians claim they were instructed to shift repair costs to customers to reduce warranty and goodwill repair expenses.

The investigation sheds light on alleged design issues and faulty parts, with customers facing repair bills exceeding $4,000, even for vehicles still under warranty. Tesla’s response to regulatory authorities reportedly included attributing failures to “driver abuse.”

The questionable tactics are suggested to be motivated by financial considerations, as Tesla’s repair business faced a loss of $263 million in the fourth quarter of 2018, primarily due to high volumes of warranty and goodwill repairs. The company’s reported average payment of almost $500 for repairs on every Tesla model in operation during that period is noted.

While cost management is a legitimate concern for any company, the report raises ethical questions about the alleged practice of accusing customers of damaging cars to maintain financial viability. Tesla’s response to these allegations and potential implications remain to be seen.

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