Tesla is widely seen to be operating more like a tech company than a conventional automaker. This has been proven yet again when Elon Musk revealed that each car in its EV range will get a new iteration every 12 to 18 months.
This is almost similar to the product cycles of mobile devices.
Tesla Upgrade Frequency
The issue involves the practice of retrofitting, which is common in the car industry. Here, a new technology or system is added to an older system. According to Musk, this will be counterproductive for Tesla. He cited the cost, for instance, of installing a self-driving technology to an older Tesla Model S.
Musk pointed out that such initiative could require stripping the entire vehicle to replace around 300 components. This, however, seems to be the most extreme scenario. The fact is that Tesla has already undertaken several retrofits in the past.
Cost Of Retrofitting
Last July, the company was able to successfully upgrade the Tesla Roadster with a better battery pack, improving its range dramatically. To be fair, Tesla has already noted the expensive amount entailed in the process.
"The reason the cost per kWh is higher than a Model S battery is due to the almost entirely hand-built, low-volume (only two or three per week) nature of Roadster battery packs," Tesla explained. "lt also includes additional work to remove, upgrade, and reinstall the power electronics module (PEM)."
It therefore makes sense if Musk is digging his heels on this issue. In a Twitter post, he pointed out that if Tesla owners keep asking for retrofitting services, then they are buying the wrong car.
@dtweiseth Tesla will never stop innovating. People are buying the wrong car if they expect this. There will be major revs every 12 to 18 months.
— Elon Musk (@elonmusk) January 22, 2017
Musk seems to indicate that the entire process of retrofitting components could harm Tesla's potential to innovate. Once a new technology is developed, for example, the company still needs to reproduce so it is compatible to the older vehicle models. Take the case of the Autopilot update, older Tesla Model S owners have to wait for Tesla to develop updates compatible to their vehicles. This means that the process would be taking precious time, a resource that is better spent on developing new technologies.
Quick EV Obsolescence
On the other hand, Tesla customers are fretting about their vehicles getting obsolete in record time. To provide more context, one can only turn to the manner by which mainstream vehicles tend to have the same basic design for about five years, with automakers introducing new options and incremental enhancements in each new generation.
Tesla is in a precarious situation here. A good percentage of its customers are investing their money for the latest and the greatest technology. The prospect of a swiftly ageing vehicle will likely turn some future customers off. You may also be sure that Musk will have to answer a growing number of unhappy Tesla EV owners at Twitter.
