Tesla to Do Collision Repairs In-House

Tesla Inc. (TSLA) has pledged to bring most collision repairs in-house after owners of the company’s electric cars complained that third-party body shops are driving them “crazy.”

In a series of tweets on Sunday, CEO Elon Musk claimed that Tesla owners are faced with excessive wait times at external shops to get their cars fixed following accidents. "Tesla is bringing most collision repairs in-house, as outside firms take weeks to months for repairs, driving Tesla owners (and us) crazy,” he said.

He also admitted that Tesla has gone from "production hell to delivery logistics hell" in response to a customer's complaint on Twitter about their delivery being delayed indefinitely. (See also: Tesla Missed Production Goal for Model 3 in August)

Sorry, we’ve gone from production hell to delivery logistics hell, but this problem is far more tractable. We’re making rapid progress. Should be solved shortly.

— Elon Musk (@elonmusk) September 17, 2018

Tesla Should Shoulder Some of the Blame for Third-Party Delays

Musk, who first promised to roll out a collision repairs service during Tesla’s annual shareholder meeting in June, added that his company’s in-house body shop aims to do a much better job. The goal is to finish repairs in in “under an hour” and ensure that vehicles are returned to their owners "better than before accident."

Musk added that some of Tesla’s already open repaired shops are currently completing repairs within 24 hours.

The billionaire entrepreneur provided some examples of how Tesla can achieve its ambitious objectives, noting that his company’s collision repair service won’t need to wait to order in parts and gain insurance approval. "Outside repair shops are jack of all trades, which means supporting 1000's of makes & models. Tesla collision repair specializes in three," he wrote. "Having all parts in stock & not waiting for insurance approval also make a world of difference." (See also: Tesla's Global Finance Head Quits.)

One user took exception to Musk’s comments, tweeting that third-party body shops struggle to fix Tesla cars quickly because the electric car company isn’t providing them with enough spare parts. Many major automakers often deliver parts to collision repair ships, whereas Tesla parts need to be picked up from one of the company’s showrooms or service centers.

Musk admitted that spare parts are lacking and promised to fix the issue. "Service & parts supply in general will be the top Tesla priority after we get through the insane car delivery logistics of the next few weeks,” he wrote.

Industry insiders also questioned the viability of Musk’s pledge to repair vehicles without waiting for insurance approvals. Ron Arth, the owner of Oakland, California, repair shop George V. Arth & Son, told CNBC that achieving that goal could be difficult, unless Tesla is willing to work for free or temporarily carry the cost on its books while it works out approvals. "Collision repair shops have to document everything we do, and justify it in order to get paid for the repairs," he said.

Arth also warned that offering quick turnaround repairs could backfire if it means not returning cars safely and correctly. (See also: One of Tesla’s Biggest Skeptics Says Buy on Recent Dip.)

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