The Austin, Texas-based EV maker deployed the team because its service centers were inundated with appointments from owners who had expected better performance based on the company’s advertised estimates and the projections displayed by the in-dash range meters of the cars themselves, according to several people familiar with the matter.
Inside the Nevada team’s office, some employees celebrated canceling service appointments by putting their phones on mute and striking a metal xylophone, triggering applause from coworkers who sometimes stood on desks. The team often closed hundreds of cases a week and staffers were tracked on their average number of diverted appointments per day.
Managers told the employees that they were saving Tesla about $1,000 for every canceled appointment, the people said. Another goal was to ease the pressure on service centers, some of which had long waits for appointments.
In most cases, the complaining customers’ cars likely did not need repair, according to the people familiar with the matter. Rather, Tesla created the groundswell of complaints another way – by hyping the range of its futuristic EVs, raising consumer expectations beyond what the cars can deliver. Teslas often fail to achieve their advertised range estimates and the projections provided by the cars’ own equipment, according to Reuters interviews with three automotive experts who have tested or studied the company’s vehicles.
Neither Tesla nor CEO Elon Musk responded to detailed questions from Reuters for this story.
Tesla years ago began exaggerating its vehicles’ potential driving distance – by rigging their range-estimating software. The company decided about a decade ago, for marketing purposes, to write algorithms for its range meter that would show drivers “rosy” projections for the distance it could travel on a full battery, according to a person familiar with an early design of the software for its in-dash readouts.
Then, when the battery fell below 50 percent of its maximum charge, the algorithm would show drivers more realistic projections for their remaining driving range, this person said. To prevent drivers from getting stranded as their predicted range started declining more quickly, Teslas were designed with a “safety buffer,” allowing about 15 miles of additional range even after the dash readout showed an empty battery, the source said.
The directive to present the optimistic range estimates came from Musk, this person said.
“Elon wanted to show good range numbers when fully charged,” the person said, adding: “When you buy a car off the lot seeing 350-mile, 400-mile range, it makes you feel good.”
Tesla’s intentional inflation of in-dash range-meter projections and the creation of its range-complaints diversion team have not been previously reported.
Driving range is among the most important factors in consumer decisions on which EV to buy, or whether to buy one at all. So-called range anxiety – the fear of running out of power before reaching a charger – has been a primary obstacle to boosting electric-vehicle sales.
At the time Tesla programmed in the rosy range projections, it was selling only two models: the two-door Roadster, its first vehicle, which was later discontinued; and the Model S, a luxury sport sedan launched in 2012. It now sells four models: two cars, the 3 and S; and two crossover SUVs, the X and Y. Tesla plans the return of the roadster, along with a “cybertruck” pickup.
Reuters could not determine whether Tesla still uses algorithms that boost in-dash range estimates. But automotive testers and regulators continue to flag the company for exaggerating the distance its vehicles can travel before their batteries run out.
Tesla was fined earlier this year by South Korean regulators who found the cars delivered as little as half their advertised range in cold weather. Another recent study found that three Tesla models averaged 26 percent below their advertised ranges.
The U.S. Environmental Protection Agency has required Tesla since the 2020 model year to reduce the range estimates the automaker wanted to advertise for six of its vehicles by an average of 3 percent. The EPA told Reuters, however, that it expects some variation between the results of separate tests conducted by automakers and the agency.
Data collected in 2022 and 2023 from more than 8,000 Teslas by Recurrent, a Seattle-based EV analytics company, showed that the cars’ dashboard range meters didn’t change their estimates to reflect hot or cold outside temperatures, which can greatly reduce range.
Recurrent found that Tesla’s four models almost always calculated that they could travel more than 90% of their advertised EPA range estimates regardless of external temperatures. Scott Case, Recurrent’s chief executive, told Reuters that Tesla’s range meters also ignore many other conditions affecting driving distance.
Electric cars can lose driving range for a lot of the same reasons as gasoline cars — but to a greater degree. The cold is a particular drag on EVs, slowing the chemical and physical reactions inside their batteries and requiring a heating system to protect them. Other drains on the battery include hilly terrain, headwinds, a driver’s lead foot and running the heating or air-conditioning inside the cabin.
Tesla discusses the general effect of such conditions in a “Range Tips” section of its website. The automaker also recently updated its vehicle software to provide a breakdown of battery consumption during recent trips with suggestions on how range might have been improved.
Tesla vehicles provide range estimates in two ways: One through a dashboard meter of current range that’s always on, and a second projection through its navigation system, which works when a driver inputs a specific destination. The navigation system’s range estimate, Case said, does account for a wider set of conditions, including temperature. While those estimates are “more realistic,” they still tend to overstate the distance the car can travel before it needs to be recharged, he said.
Recurrent tested other automakers’ in-dash range meters – including the Ford Mustang Mach-E, the Chevrolet Bolt and the Hyundai Kona – and found them to be more accurate. The Kona’s range meter generally underestimated the distance the car could travel, the tests showed. Recurrent conducted the study with the help of a National Science Foundation grant.
Tesla, Case said, has consistently designed the range meters in its cars to deliver aggressive rather than conservative estimates: “That’s where Tesla has taken a different path from most other automakers.”