TSLA Stock: Tesla Motors Inc’s Latest Move Has Owners Outraged

TSLA Stock

Update February 17th, 3:20 PM: Tesla has reversed the changes on its website with regards to service plans. According to The Verge, customers can continue to transfer them when a car is sold. The original article below has not been updated.

Tesla Motors Inc (NASDAQ:TSLA) stock has been taking heat from investors. Now the luxury electric carmaker could be under fire from drivers, too.

Over the weekend, Tesla raised prices on its after-sales service options by $200.00.

Tesla owners now can pre-purchase the annual servicing for $2,100 for four years or $3,800 for eight years.

Previously, those same services cost $1,900 for four years or $3,800 for eight years.

Tesla recommends “Model S” and “Model X” owners have their cars serviced every year or every 12,500 miles, whichever comes first. Free wheel alignments are also no longer included in the yearly maintenance. (Source: “Tesla quietly raises prices, removes transferability from service options,” The Verge, February 15, 2016.)

Tesla had also announced some restrictive changes to its extended warranty policy that it later retracted, saying the new change “was posted with an error.” (Source: “Tesla says the restrictive new changes to its service plans were posted by mistake,” The Verge, February 15, 2016.)

“Tesla owners can indeed transfer the unused portion of their Extended Service Agreement with the sale of their Tesla,” the Palo Alto, California-based company wrote in an e-mail sent to The Verge. “Our practice of refunding the unused portion of the Extended Service Agreement also continues. In addition, Tesla owners can transfer the unused value of their Extended Service Agreement towards an Extended Service Agreement for a new Tesla Model S or Model X.”

Earlier, The Verge reported, citing Tesla’s web site, that Tesla buyers now cannot transfer their extended warranty and prepaid service plans when reselling the car.

Acquired by billionaire Elon Musk, on Wednesday, Tesla reported an unexpectedly large fourth-quarter loss of $320 million.

Tesla’s primary car is the Model S sedan. Last year, it launched the Model X sport utility vehicle. Tesla also plans a lower-priced, mass-market electric car called the “Model 3” for late 2017.

Tesla stock has lost 34% since the beginning of the year. It reached a 52-week low of $157.25 on February 5. It’s far below its all-time high of $286.00, recorded in September 2014.

Currently, there are eight analysts that rate Tesla Motors a “Buy,” four analysts rate it a “Sell,” and eight rate it a “Hold.”

Sponsored Web Content