Photo: GM/edited by autoevolution
Tesla frequently brags about its direct sales model and that all its service centers are an extension of the company. Lately, that has been more of a burden than an advantage. Tesla customers frequently complain that they take too long to make an appointment and that repairs are not performed as they should. What few people would suspect is that Tesla owners would ask General Motors dealers to fix their EVs.
According to Mark Reuss, that’s what has been happening. The automaker’s president said during the General Motors Investor Day 2022 that its dealers have repaired 11,180 Teslas since 2021. Unfortunately, the executive did not disclose exactly which repairs were performed on these Tesla vehicles. Complex or not, the relevant and shameful part is that these customers did not service their EVs where they were supposed to go.
For Reuss, that’s an unexpected revenue source, even if a welcome one. The executive is proud of GM’s dealer network and its high coverage: 90% of the U.S. population lives within 10 miles of a company’s dealership. That can make them the preferred destination for repairing vehicles, especially in areas not served by Tesla or in which it does not cope with demand.
Reuss also praised the Bolt EUV as the number 1 mainstream EV on the market, meaning it is leading sales among affordable electric cars. According to GM’s president, the carmaker will cover 31% of all U.S. market segments with EVs by 2025. Ford would only manage to cover 22%, while Tesla would reach only 19%.
In terms of volumes, this 31% representation will mean GM will have vehicles to sell in segments that represent 69% of all cars sold in the U.S. Ford would reach 58% with its 22%, and Tesla would cover 27% with its 19%. Regarding revenue, we’re talking about 76% for GM, 61% for Ford, and 33% for Tesla. According to Reuss, “GM can go places that competitors cannot both on volume and revenue.” For a company that can even service Teslas when Tesla cannot do that, that may not be an exaggeration.
For Reuss, that’s an unexpected revenue source, even if a welcome one. The executive is proud of GM’s dealer network and its high coverage: 90% of the U.S. population lives within 10 miles of a company’s dealership. That can make them the preferred destination for repairing vehicles, especially in areas not served by Tesla or in which it does not cope with demand.
Reuss also praised the Bolt EUV as the number 1 mainstream EV on the market, meaning it is leading sales among affordable electric cars. According to GM’s president, the carmaker will cover 31% of all U.S. market segments with EVs by 2025. Ford would only manage to cover 22%, while Tesla would reach only 19%.
In terms of volumes, this 31% representation will mean GM will have vehicles to sell in segments that represent 69% of all cars sold in the U.S. Ford would reach 58% with its 22%, and Tesla would cover 27% with its 19%. Regarding revenue, we’re talking about 76% for GM, 61% for Ford, and 33% for Tesla. According to Reuss, “GM can go places that competitors cannot both on volume and revenue.” For a company that can even service Teslas when Tesla cannot do that, that may not be an exaggeration.
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