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Warranty Trend For The Model S

|Includes:Tesla Motors (TSLA)
      Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 Sep-13 Jun-13 Mar-13
Accrued warranty-beginning of period 113735 84371 71932 53182 53722 36877 24061 13013
Warranty costs incurred 10153 -11179 -9271 -9300 -8060 -6392 -1601 -3107
Changes in liability for pre-existing warranties, including expirations -5671 14609 1541 8120 -10122 4878 3174  
Provision for warranty 31132 25934 20169 19930 17642 18359 11244 14156
Accrued warranty - end of period 129043 113735 84371 71932 53182 53722 36878 24062
sales 9834 7785 7579 6457 6900 5500 5150 4900

An interesting detail is noticed from looking at historical data ... the warranty costs follow the number of cars sold rather than the number of cars on the road.

What that indicates is that Tesla is working through QC issues that the service center then takes care of. But once resolved, the cars are "fixed" generally not to return for further service. Let's see in Q3 is the trend continues?

Update (Apr 2015): For the first time, warranty costs actually decreased despite increased quarterly sales. No wonder no one's been harping about the "drivetrain failures" anymore.

Disclosure: The author is long TSLA.

Stocks: TSLA