On Friday, Tesla Motors C.E.O. Elon Musk announced what he described as "the world's best service and warranty program." The new program offers 85 kilowatt-hour Model S cars as loaners, and adds an unlimited battery warranty. Is Tesla setting a standard for the rest of the auto industry to follow with its electric cars?
According to Musk, the company's current service system is "okay, but not great." He said that customers who are satisfied with their car service are more likely to buy future cars from the same company, but leaving owners dissatisfied will make them unlikely to buy again from Tesla. While many Tesla Roadster owners returned to Tesla to buy a Model S, the company is only now expanding its market wide enough to consider how it will retain a broader customer base of potential return buyers in the coming years.