The way they're going about it might not be the right way, but having worked at and run car dealerships, $600/year is not out of line (granted this is based on

The way they're going about it might not be the right way, but having worked at and run car dealerships, $600/year is not out of line (granted this is based on conventional engine vehicles). The first year of the vehicle you probably won't get your money's worth, but after that it becomes much more valuable. At a traditional car dealership, a 15k mile service is pretty basic, oil change and tire rotation, but they will try to upsell you on numerous other items (special additives to improve engine life/gas mileage, air filter change, wipers, etc...) that will easily hit $250-$300 for that visit. These items can all be done in ~10 minutes at home for ~$50. For a 30k mile service, you're looking at well over $400. To be able to take your car in, not have to deal with the hassle of someone trying to hustle/upsell you, get everything on the car done, road side service, and (hopefully) better service than you'd get at a traditional car dealership? Doesn't seem to me like the price is way out of line. Not only that, but think about the last time you went to a dealership to buy a car, remember when you went in the finance office to sign the paperwork? More than likely the finance manager was trying to sell you a service contract from a 3rd party that was more expensive and covered less items. In the end though it's hard to judge the value of these things without having the service contract in front of me, knowing you specific driving habits and exactly what services the contract covers and what services it doesn't (if any). Having said that, I would be highly surprised if 12% of Tesla pre-orders get canceled because of the service contract (as mentioned in the article).