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smartphone. The car will start charging right away or the owner can tap into the Model S’s software and schedule charging to take place late at night, when the cheapest electricity rates are available. Tesla owners not only dodge gas stations; they mostly get to skip out on visits to mechanics. A traditional vehicle needs oil and transmission fluid changes to deal with all the friction and wear and tear produced by its thousands of moving parts. The simpler electric car design eliminates this type of maintenance. Both the Roadster and the Model S also take advantage of what’s known as regenerative braking, which extends the life of the brakes. During stop-and-go situations, the Tesla will brake by kicking the motor into reverse via software and slowing down the wheels instead of using brake pads and friction to clamp them down. The Tesla motor generates electricity during this process and funnels it back to the batteries, which is why electric cars get better mileage in city traffic. Tesla still recommends that owners bring in the Model S once a year for a checkup but that’s mostly to give the vehicle a once-over and make sure that none of the components seems to be wearing down prematurely. Even Tesla’s approach to maintenance is philosophically different from that of the traditional automotive industry. Most car dealers make the majority of their profits from servicing cars. They treat vehicles like a subscription service, expecting people to visit their service centers multiple times a year for many years. This is the main reason dealerships have fought to block Tesla from selling its cars directly to consumers.* “The ultimate goal is to never have to bring your car back in after you buy it,” said Javidan. The dealers charge more than independent mechanics but give people the peace of mind that their car is being worked on by a specialist for a particular make of vehicle. Tesla makes its profits off the initial sale of the car and then from some optional software services. “I got the number ten Model S,” said Konstantin Othmer,17 the Silicon Valley software whiz and entrepreneur. “It was an awesome car, but it had just about every issue you might have read about in the forums. They would fix all these things and decided to trailer the car back to the shop so that they didn’t add any miles to it. Then I went in for a one-year service, and they spruced up everything so that the car was better than new. It was surrounded by velvet ropes in the service center. It was just beautiful.” Tesla’s model isn’t just about being an affront to the way carmakers and dealers do business. It’s a more subtle play on how electric cars represent a new way to think of automobiles. All car companies will soon follow Tesla’s lead and offer some form of over-the-air updates to their vehicles. The practicality and scope of their updates will be limited, however. “You just can’t do an over-the-air sparkplug change or replacement of the timing belt,” said Javidan. “With a gas car, you have to get under the hood at some point and that forces you back to the dealership anyway. There’s no real incentive for Mercedes to say, ‘You don’t need to bring the car in,’ because it’s not true.” Tesla also has the edge of having designed so many of the key components for its cars in-house, including the software running throughout the vehicle. “If Daimler wants to change the way a gauge looks, it has to contact a supplier half a world away and then wait for a series of approvals,” Javidan said. “It would take them a year to change the way the ‘P’ on the instrument panel looks. At Tesla, if Elon decides he wants a picture of a bunny rabbit on every gauge for Easter, he can have that done in a couple of hours.”* As Tesla turned into a star of modern American industry, its closest rivals were obliterated. Fisker Automotive filed for bankruptcy and was bought by a Chinese auto parts company in 2014. One of its main investors was Ray Lane, a venture capitalist at Kleiner Perkins Caufield & Byers.PDF Image | SpaceX and the Quest
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