Tesla, An Owner's Journey

I took possession of my Tesla Model S 90D on June 18, 2016.? It was less common then for a Tesla to be on the road and I was often asked questions about my experience.? Those questions have decreased over the years as familiarity has increased, but having been on this journey for almost nine years, I thought revisiting those early questions would be of interest.

At the time, Tesla did not acknowledge a “Model Year”, possibly as a statement of differentiation, or possibly because they were producing multiple versions within a single year.? In 2016 they produced the Model S 60, 70, 75, 85, 90, and 100; and in a variety of base, D (all-wheel drive) and P (performance) extensions.? 2016 marked the first major design evolution, removing the “guppy mouth” in favor of a more integrated front bumper and fascia.?

I wanted to purchase a BMW 5-Series.? I knew the specifications I wanted and having owned an Acura RL for about eight years, was looking forward to a sportier sedan.? But the BMW salesman was so circuitous and resistant in communicating the cost and availability of the car I specified, that I left vowing never to again foster an interest in BMW.? Disheartened, my wife suggested I consider a Tesla.? They were not even on my radar.

The test drive.? Devon, PA was the closest Tesla “dealer” (not really a dealer) at the time.? I asked to test drive a Model S.? The “salesman” (not really a salesman) immediately brought a car around and we left the dealership, me in the driver’s seat, my wife in the back seat, and the salesman in the passenger’s seat.? I wasn’t two blocks down Lancaster Avenue before I literally started laughing out loud.? Everything you could ever dream of in a car, this had it.? Quick as lightening.? Spacious interior.? Cornering on a dime.? Unrivaled technology.? And then the salesman told me to pull back twice on the stalk to the left of the steering column and let go of the steering wheel.? The car drove itself.? That was a very big deal in 2016.

The purchase.? Back at the dealer ship, the salesman asked me to stand at a podium topped with an iPad, and make some selections.? There were three decisions: model, color, and third row seating.? 90D, black, and no.? Within 2 minutes of returning to the dealership, I had a price and lead-time.? I then asked the salesman for the real price and lead-time, anticipating the ceremonial back and forth we’ve all come to expect when buying a car.? She reiterated that what was displayed on the screen was the correct price and lead-time - end of story.? I bought the car on the spot.

Taking possession.? The stated lead-time was approximately fourteen weeks by my recollection, but it was only about eight weeks later that I was back in Devon to pick up my car.? In the interim I had to arrange my own financing.? Tesla was not a member of the National Automobile Dealers Association (NADA) at the time.? Tesla’s locations are “showrooms”, not “dealerships”, at least in Pennsylvania.? One of the distinctions is that Tesla did not directly arrange financing, although they did recommend banks for a buyer to contact.? Honestly, in this process, I was left with a much worse opinion of NADA than Tesla.

Annual inspections, emissions testing and registrations.? Pennsylvania requires automobiles to be inspected annually, including emissions, and an annual registration with the Commonwealth.? For the first couple years this annual process was a bit complex and not at all straightforward.? I then developed a relationship with a local mechanic that had a familiarity with Tesla automobiles and could perform the annual requirements without me needing to explain why an electric vehicle had no emissions.? The entire process now consists of a tire depth gauge, and the “inspection” takes place in the parking lot.? No lift needed.? If the depth gauge passes, the sticker goes on the windshield, and I pay $45.? Otherwise, I replace the tires, and then the sticker goes on the windshield.? That’s it.? No additional song and dance about transmission fluid, hood struts, oil change, timing belts, etc.? None of that is applicable to an electric vehicle.? $45.? Done.

Cost of service during ownership.? My experience with service costs is similar to my experience with annual inspections in that the costs are significantly lower comparably.? I did have one issue, that I argued unsuccessfully should have been a warranty issue.? A partial battery failure in the second year cascaded into a fairly significant issue that cost me about $3,500.? Other than that, and excluding the cost of tires (I’m nearing the end of the useful life of my third set), total service costs so far are under 30% of what I experienced with my previous vehicle for an equivalent time.? Consider also the effect of inflation (service costs for the Tesla are being compared to Acura service costs eight years prior) and I would estimate comparative service cost for the Tesla at 20% of that for a traditional vehicle.? There are basically no moving parts.? Service costs consist mostly of cabin filters and a general health check that I do every other year.? At 80,000 miles I still have the original brakes thanks to regenerative braking.

Cost of operations.? I estimate the cost of electricity to operate my Tesla for the past nine years is just 15% of the cost of gas to operate an ICEV for the same mileage and conditions.? Annual insurance costs are about 20% less for the Tesla, and have remained so for the entire time of ownership.? The depreciated value is about the same for both vehicles in terms of a percentage of the original purchase price.

The battery.? First, battery capacity is reduced at colder temperatures.? It falls off pretty substantially at about 40 degrees, and then levels off at about 20 degrees, in my experience.? The impact is about 50%, which means if your trip is 100 miles, you need to have 150 miles of range accounted for.? The degradation is really one-third, not one-half, but those are the numbers.? Second, the argument of “what are we going to do with all these used batteries?” is not a valid argument.? At the time of purchase, I was told my battery would need to be replaced in eight years.? Two years into that understanding Tesla announced “that’s half the story, it’s really about how much you use your car, not how long you own it, so let’s say in 100,000 miles you will need to replace your battery”.? Then as additional information was collected, Tesla announced the average battery life should be between 300,000 and 500,000 miles.? At 80,000 miles and nine years, I have near 0% degradation in battery performance or capacity.? In actuality, because of better battery management resulting from over air software updates, my car actually has more range today than when I purchased it.? Lastly, the newer models can charge 200 miles in 15 minutes at a level 3 supercharger.? Because of the heat involved in that process, I would not recommend relying exclusively on superchargers as it can adversely affect the battery over time.

Range anxiety.? Any range anxiety ended within about 12 hours of taking possession of my car.? The battery charge monitor is a gas gauge.? You get close to empty, you get more gas.? That’s really not hard to deal with.? In 2016 there were two supercharging stations between Philadelphia and Pittsburgh.? Now there are more than 30, all built by Tesla I might add.? There’s something to say about private enterprise leading the development of new technology as opposed to this for instance.? Further reassuring the driver is the in-cabin Tesla software.? Where are the superchargers located?? How long to get there?? Where do you need to stop?? Can you precondition the battery to reduce charging time? ?How many spots are open at the charging station?? Is there a place to eat near the charging station?? All that is handled.?

Performance in winter.? I already talked about the battery performance in the cold.? In terms of adverse winter conditions, the Model S is all wheel drive with a curb weight of about 4,500 pounds.? My Acura RL was great in snow.? The Model S is better.

What to do when charging.? I have changed my itinerary and preparations when traveling longer distances.? When I know I will need to charge during a trip, I get on the road earlier.? I develop an idea of where I might stop, and I look forward to the break, where I might get some work done in the car, take some phone calls, or grab a bite to eat.? It’s the same I would be doing if I hit the road later, I’m just doing it on the road having left earlier.? So, work-drive-work-drive-arrive, as opposed to work-work-drive-drive-arrive.? It really does not make a difference once you get used to it.? Now, if you are traveling with others, yeah, that may not be ideal.

Recommendations to others.? Over the years, especially when adoption and familiarity was lower than it is now, I was frequently asked about my experience and if I would recommend a Tesla.? My first question is how much you drive.? If you are on the road in stop and go traffic for 25,000 to 40,000 miles a year, a Tesla may not be for you.? Charging does take longer and it is not as transactional as getting gas.? Other than that, yes, I would recommend a Tesla, hands down.? To my knowledge, my recommendations have resulted in the purchase of six Teslas.? In every case, ranging from two to six years of ownership, the owner is still in possession of the car they purchased and are similarly promoting Tesla.

How did electric vehicles get politicized?? This is weird for me.? I purchased a Tesla because it is a great car.? I am not trying to save the planet or the environment, at least not in a car purchase.? I am fully aware, especially in Pennsylvania, that the electricity coming out of the outlet mostly comes from coal.? An electric vehicle is just an option.? It is not for everyone and it is not the appropriate solution in all circumstances.? Internal combustion engines should remain a consumer option and, in my opinion, EV quotas and subsidies should not exist, nor should any war on traditional vehicles.? The automotive industry should build both and let the consumer decide what is right for them.? My wife will be needing to replace her vehicle shortly and we will be getting a traditional vehicle for her so that we have options in the family when taking a trip.

Would I buy another Tesla?? Frankly, I see no reason or cause to replace this one.? If I do get into an accident or some other unforeseen event occurs that disables my current car, after an appropriate period of mourning, absolutely, another Tesla Model S will be in my future.

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With all the above, your experience and understanding will vary.? This is just my experience, which has been quite positive.

Specific to the global electronics industry, it measured approximately $3.5 trillion in 2022, with the automotive industry comprising between 5 to 10% of that revenue.? Assuming 5%, that’s $175 billion of revenue attributed to the automotive industry globally.?

In 2022, sales of electric vehicles comprised approximately 10% of the total global automotive market, and is expected to make up 30% of that market by 2030.? So, within the electronics manufacturing industry, the opportunity presented by electric vehicles is $17.5 billion (10% of $175 billion), with that number exceeding $50 billion by 2030 as the EV market share increases. ?

As a sanity check, the automotive industry measured $1.5 trillion in 2022.? The total raw material cost of a vehicle is approximately 15%, with 40% of that figure being attributed to electronics, meaning the cost of electronic systems, electronic components, power systems, semiconductors, etc., totaling approximately $90 billion in 2022.? That’s not quite the $175 billion calculated previously, but it provides a reasonable range for back of the napkin analysis.

Knowing the cost of electronic components is greater in electric vehicles, this provides us an estimate that the global market available to the electronics manufacturing industry that may be attribute to electric vehicles will be between $30 billion and $50 billion in 2030.? A more granular analysis might consider a longer period of ownership, reduced requirement for service components, and increased inflation rates.? In any regard, based upon my experience of ownership, the demand for electric vehicles is going nowhere but up.? ?

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