“Customer support at Tesla is even worse than I claimed last time”
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If a purchase was unintentional and very large ($4,333) a refund should be offered. This feels like common sense to me.
That's a large amount of money to lose. Providing annoyingly bad customer service to people and then signing off with "Warm Regards" is likely to make enemies of customers.
Edit: Somebody mentioned that Taleb might be bullshiting about there being no confirmation, however, to be honest, I still think at this price level, customer support should be able to refund purchases. Keep your customers happy (and they will eventually purchase upgrades from you)!
I think of Apple, Microsoft, and Steam for comparison, each of which have software stores that allow refunds for purchases, some of which could potentially be pretty significant. For example, Train Simulator has about $10,000 in DLC [1], and a single bundle purchase of all of it would still qualify for Steam's two-weeks-from-purchase/less-than-two-hours-of-play refund policy.
[1]: https://ganker.com/train-simulator-game-all-dlc-total-cost-a...
So... turn those off again, then.
Say unlocking Boost Mode costs $2k. What would the subscription cost, $200/mo?
If I can show off Boost Mode to all my friends in one month, I might never care to pay for it again after that.
If my only way to get the feature is a permanent unlock (and I can afford it), Tesla scores an extra $1800.
Subscriptions work for sticky things. Are Tesla's add-ons all that sticky?
And clothes have another dimension (heh, literally) of size/fit/feel. I think it's totally reasonable to buy a shirt online, put it on, think "wow this material is awful" and return it. That's what you can do in-store, and it's not your fault that that loop is a lot more expensive for online retailers.
Free returns are usually a requirement for clothing sales though. Say, Zalando has free returns within 100 days -- people expect this as clothes obviously need to fit.
I don't know.
But that doesn't seem very relevant. Tesla has already shown they will upgrade customers who have purchased full self driving to their latest hardware package (v2 -> v3).
He also says there is another generation of hardware in the works. Not sure where that fits in. But if they can roll out a 2.5 -> 3.0 hardware upgrade, as they are doing, I don’t see what prevents them from doing that for 3.0 -> 4.0 hardware when the time comes.
Although I don’t know where that fits in, I do know where it does not fit in, which is into a made up narrative which falsely claims that Elon promised the hardware would never change and never be upgraded.
I realize that’s not quite in the spirit of your question but I’m also pointing out that the question may be moot.
Also the qualifier “major” is up for discussion. A replacement of the main computer motherboard certainly seems major on its face, but if it can be done by a mobile service tech in half an hour at a location of your choosing without you even needing to be there, then it’s not so major, in an important sense.
Actually re-purchased afterwards and left it installed for a few days so dev would get their couple dollars.
In Europe (EU) you have at least 14 days to revert any purchase made over "distance" unless the product is either custom made or of such a type that a resale isn't possible (eg. Underwear). You are also allowed to reasonably test the product. The only charges you can incur is the shipping back and if you materially lower the value, an example would be rough handling.
This is the reason for the return policy of 14 days or a couple of hours played steam for example has.
This means no refunds for Steam games unless your government has put additional rules in place to also cover the purchase of digital goods.
"But section 19 of that EU directive explicitly allows sellers of digital goods to ask users to waive that right before they make the purchase, provided the digital goods are delivered immediately." -- https://arstechnica.com/gaming/2015/03/sorry-europe-you-stil...
As others pointed out the european 14 day return policy only applies to physical goods.
Elon responded - https://twitter.com/elonmusk/status/1217493904297058304
He seems to reply to everyone, but I guess a blue checkmark gets more attention
Confirmed by who? When? How?
"First day driving a @TeslaMotors. Something else! I hope I will never ever have to drive a nonelectric car." (https://twitter.com/nntaleb/status/897402998787330048?lang=e...)
"There are 150K-200K car fires per annum. You take one event & an emotional statement of an actress & turn it into a statement about the safety of @Tesla. And this is 2018." (https://twitter.com/nntaleb/status/1008365860057120770?lang=...)
"But they can show evidence of smear campaign (there is) using my Tesla/NonTesla test." (https://twitter.com/nntaleb/status/1018509262085996545?lang=...)
"Tesla might not be a flawless diamond, but you could smell a smear campaign by the usual culprits, the propaganda machine for middlebrow called the New York Times, heavily compromised in its subservience to Saudi Barbaria/Oil lobbies." (https://twitter.com/nntaleb/status/1066683244295397376?lang=...)
The "OMG someone said something bad about Tesla, let's question their motives"/"the shorts!" reflexes need to stop.
IOW customer service can & should be able to fix it for one person, but the CEO can fix it for everybody.
Can you can sell a piece of software that doesn't belong to you and can't be unbundled from the car?
You can't really sell the extension to the house without selling the house unless well you live in SF and you turn it into a 5 bedroom apartment.
[1]: https://www.roadandtrack.com/new-cars/a30294938/tesla-model-...
It is not like the customer accidentally hit a button that burned up $4K of electricity; it is a digital enable code that could be just as easily disabled.
Even if they add some trivial service charge for reversing the transaction, or 1/1000 of the cost (because you had access to the fun feature for a day out of the 1000day expected lifetime), fine, but just stonewalling on an obviously reversible event is tantamount to dishonest dealing
A big fraction of product cost is the overhead of setting up the manufacturing pipeline, so often the product tiers will be very small or even software changes to the exact same object.
This doesn't strike me as unfair. It's helped me recently, when I bought the lowest tier iPad pro (I don't care about storage or built-in cellular, and I want the smallest one). If someone wants to pay more for those things, let them. If it came full-price with all those features bundled, I simply wouldn't have bought it at all.
(Say the lowest tier widget costs $10 and sells 1000 units. The higher tier costs $20 and sells 100 units. The average revenue per unit is $10.91. The question then is, how many units would they sell if the single-tier unit price was $11?)
I do hate the idea of software unlocks, though.
I realized what happened (they didn't explain in so many words) was that to be as efficient as possible, the difference between the mid level and base level trims was a different plastic faceplate with different labels, and a software switch. So mine apparently had the switch set for a different trim and all that was needed was to change it. But the exact same electronics were installed in all the cars.
Once I rented an Audi Q5 from Avis, fancy with leather seats and the touchscreen stereo and all that jazz... but the Nav didn’t work. I didn’t pay for the Nav addon, but the car comes standard with Nav. Looked for the Sd card, and it was there. I figured I’d spend some time after the client to figure out why... well before I even left, while I was putting my bags in the trunk I noticed a panel missing and a cable dangling. I plugged the cable back in, suddenly the car chimes and Nav appears on the stereo.
Don’t underestimate the lack of knowledge by people and the wolves who prey on them.
> Those things cost money just like software development costs money
The hardware is there. The software development cost is around building a gate/UI so only certain customers have access to it.
But this, less so:
> It's the same case with the Full Self-Driving package: you're not paying for hardware you have to be enabled
Now, obviously there's a cost for software development. But this is nebulous hand waving at best (and though you don't "speak" for Tesla, they're also not alone in this).
"Oh, the hardware is free, you're just paying for software..." as a justification, that is.
The hardware is demonstrably NOT free, no matter how you spin it. It's just a better business model for them. It's no different to Comcast wanting to charge me less for installing telephony equipment that was never plugged in, in order to "bundle", than just plain Internet service.
I think another way to look at it is that some features cost extra money because they cost money to make, and they add value to the vehicle. In a traditional model, you would have to take your car into the dealership or whatever to have some sort of extra feature installed. (Once upon a time, this might have been upgrading from a tape deck to a CD player.) The difference with Tesla, is for some things (not all), they can do this remotely. There's really only a psychological difference because we perceive if something is technically capable of some feature, it should be able to do it whether or not we've paid for it.
While there are certainly some cases of poor customer service that get a lot of bad press, there are also many cases of excellent experiences where they go above an beyond what they needed to do, and compared to any other car company, the experience just doesn't even begin to compare.
Maybe the service problems effect a relatively small number of owners? Maybe quality has been getting better, and service has been too? Or maybe Teslas have outstanding positive qualities that offset the service deficiencies? Maybe other auto makers also have equally bad service? Or a bit of all of these possible explanations?
I'd rather enjoy discovering that Nicholas Taleb was bullshitting here...
The Upgrades menu is on the main list of options when you open the Tesla app on Android. I have not activated it myself by accident, but once you tap Upgrades, it loads the available options. There are 2 for me. If you "check" one of the options, it will be checked the next time you come back to the screen. After a checkbox is checked, there's a Pay Now link at the bottom of the screen.
That's the workflow. I personally find it hard to believe it could be navigated completely by accident, but the placement of the menu option and the persisting of the checkbox across re-visits to the Upgrades screen make me think it's possible.
There was no confirmation page, or any way to really regret the purchase (that I could find) other than contacting the seller, which I did to clear up the shipping snafu. (I still wanted the item, just not to that address.)
I've never opted for Apple Pay since, only ever just using card payments instead. It's marginally more involving when you've got cards setup with a secrets manager, but it's worth it to significantly reduce the risk of accidental purchase.
If the purchase flow in this case made use of Apple Pay than I for one find the "butt dial" explanation very plausible.
Speaking as someone who temporarily changes addresses often, ew. That's not good.
I think it's really actually nice that everything is there on one page and consistent to your platform [1], but I can see missing it and moving ahead by mistake.
[1] Android supports this as well https://github.com/luruke/browser-2020#payment-request-api
I made another purchase with the seller that I mentioned in my comment about the "accidental" purchase and verified that the shipping address was not part of the pay sheet, the way it is in the "detailed request" demo, so I guess they just haven't set it up right. I'm going to contact them with a link to that page and your comment so they know who to thank – hopefully they'll get around to fixing it! Thanks again for sharing!
I had almost exclusively made purchases through apps for digital goods, but I was really surprised when I did it for the first time on a website for a physical good. The thumbprint or double-click/face scan should be a clue about money changing hands (also implying it's the final step), but I can see how a mistake gets made.
No UI is 100% free of being misinterpreted by users of course. But I'm not sure the Apple Pay UI is to blame for either your mistake or Nassim's.
That said, I did get fooled by the lack of shipping address information. It was my first ever purchase with Apple Pay (not including app store purchases, where shipping address doesn't matter much) and I guess I just assumed I'd be inputting shipping details in the next step. It was never displayed on the pay sheet, and I think this may be due to how that particular web shop is set up – you specify shipping details after inputting payment details, but only for card purchases, for Apple Pay it just gets your Apple data.
I actually verified this by making another purchase from them (wherein I had no need to change the shipping information) and it never displayed shipping details on the pay sheet. It did show card information though.
Either way, inputting card details is only marginally more involving when using a secrets manager so I'm just gonna continue to opt for that when possible. Fool me once, and all that.
I've implemented the Apple Pay API in an iOS application, and there's no way to get shipping info without explicitly requesting it from the user. The only options I can think of are that:
1. If it's an app, it has access to your contacts, and it's finding your personal contact info and using that without asking you (seems unlikely for a bunch of reasons)
2. You've given the website your shipping information previously, and it's just remembering that
But there's no way for a website/app to just "get your Apple data"
I'll go with user error here, but who cares? What do they think, Taleb purchased boost on a whim to race someone at a red light, then asked for a refund when it was over? The fact that they straight up said "no refund" is crazy, and telling. I'll bet Tesla operates like an insurance company: deny all claims until it's too noisy to bear.
His phone purchased the $7k full self driving feature while it was in his pocket from the Tesla app.
Apparently Android has this feature where you don't have to do an unlock / purchase confirm if the phone is near your your body.
Contact to customer support said they can't do chargebacks and to contact the bank instead.
He managed to get the charge reversed at the bank level on Monday.
AFAIK he still has FSD enabled and we don't know what Tesla intends to do once the bank takes back the money from them.
(He asked me for advice on this entire ordeal because I'm also a Model 3 owner, but I've always made my upgrade purchases through the web UI and not the app.)
In the EU all "distance selling" purchases (internet, phone) must be fully refundable within 14 days of taking delivery.
The seller may only charge for incurred costs, like shipping.
The refund issues are due to Tesla's policy.
The laughably childish comparison to a contractor building an addition is beyond absurd and insulting. Tesla did not rip open the car and physically bolt on additions. No labour was performed and no materials were consumed. It simply flipped a few flag bits or downloaded an archive for $4,333. That should be very simple to reverse and refund, even if the software was used briefly.
Going back to that stupid contractor analogy it would be the equivalent of buying a house with extra rooms locked by the contractor. Doesn't sound like your house anymore. And that took me all of 10 seconds to think up. Try again, rep.
And lastly, what kind of customer service is that? What kind of company lets their reps fabricate awful analogies and patronize customers? That was just a really nice way of saying "fuck you, moron".