An owner faced a challenging decision after hail damage totaled her 2019 Tesla Model 3 with 43,000 miles. Her insurer offered her the chance to keep the vehicle for $10,000, leaving her responsible for repair costs estimated around $18,000. This situation highlights issues EVs owners may encounter when facing major damage.
The decision for Tesla owners often extends beyond repair costs, touching on what happens when a vehicle receives a salvage title. Industry observers note that Tesla may deactivate certain software-dependent features, potentially impacting functionality like Supercharging, software updates, and the Full Self-Driving (FSD) package.
Consuelo Ramirez, the owner in Texas, posted her dilemma online, noting the difficulty of finding another car for $10,000. Responses suggested potential workarounds, such as using PDR (paintless dent repair) for cosmetic fixes or sourcing used body panels. One comment mentioned that hail damage sometimes appears worse than it is, estimating the cosmetic repair with paintless dent repair could be significantly less than the insurer's estimate. Using parts from a junkyard was also suggested as a cost-saving measure.
However, the primary concern raised by other owners involves Tesla's policy toward salvaged vehicles. Rick Marsh shared that a friend with a totaled Tesla Model S lost the ability to Supercharge almost immediately, followed by software updates and FSD months later. Tesla reportedly cited liability issues for disabling these features on a salvaged car.
This brings into question the nature of vehicle ownership when manufacturers retain control over software and features even after a total loss event. For some owners, a damaged car that still drives and functions might be a practical choice, especially in a tough used car market. However, losing access to manufacturer support and connectivity changes the ownership experience.
Separately, Tesla continues to focus on expanding its global manufacturing and supply chains. The company recently showcased a video highlighting that over 95 percent of parts used in Tesla Model 3 and new Tesla Model Y vehicles produced at the Shanghai Gigafactory come from local Chinese suppliers.
Tesla Vice President Tao Lin stated that the company has integrated more than 60 Chinese suppliers into its global procurement system. This reflects China's growing role in Tesla's operations, providing localized supply chains that help manage costs and production scale, particularly as the company faces slower sales in some Western markets. The Shanghai Gigafactory has grown to become Tesla's largest plant globally.
Tesla's presence in China also includes energy storage manufacturing. The Shanghai Megafactory, which began production in February, recently shipped its first batch of Megapack batteries overseas, further demonstrating the country's role in Tesla's diverse operations.
As one owner noted regarding their personal situation with a salvaged vehicle, losing features like Supercharging can significantly alter the perceived value and utility of the car.
