Tesla Body Repair Program Operating Standards

Section 1: Overview

1.1 Introduction

The Tesla Body Repair Program embraces the following objectives:

• Quality: To enable repairers to return Tesla vehicles to their originally designed state of safety, systems performance, and fit and finish aesthetics.
• Time: To provide repair methods and resources that shorten the time the customer is without their Tesla.
• Cost: To make repair procedures, and the requirements to perform them correctly, affordable.

Tesla restricts the sale of certain replacement parts to repairers who possess the correct tooling and training. Restricted parts include HV (High Voltage) components and certain components that are secured with welding, structural adhesive, and/or permanent fasteners.

1.2 Operating Standards Updates

Tesla reserves the right to amend and update the Operating Standards at any time to ensure that the Body Repair Program provides the best possible level of service to our customers.

1.3 Meeting Operating Standards Requirements

Each prospective body shop is required to meet all standards within 30 days of their application acceptance. Only when they meet all the requirements of the Operating Standards, have the General Terms and Conditions for Collision Repair Services (GTC) signed, and complete Tesla Body Repair training are they entitled to order restricted parts from Tesla, participate in Tesla Body Repair Program training, and to use the title “Tesla Approved Body Shop".

The working partnership between the Tesla Service Center and their Tesla Approved Body Shop (TABS) is of critical importance. The working partnership is defined by the GTC between Tesla and the TABS. The GTC is a legal and binding contract that ensures that the TABS complies with the Operating Standards.

Applicant body shops need to meet the following qualifications:

• Have all required licenses and permits, and operate in accordance with all regulations.
• Possess a Sales Tax ID Number (U.S. TABS).
• Possess a Federal Tax ID Number (U.S. TABS).
• Meet or exceed all local and federal safety and environmental standards.
• Possess an EPA Number.
• Have proof of garage keeper's liability and workers' compensation insurance.
• Have current subscriptions to, and be proficient in the use of, computer based P-Page estimating systems with digital imaging and electronic estimate transfer capability.
• Demonstrate ongoing industry relevant training (certificates) for management, administration, and production personnel.
• Have the ability to hoist a vehicle for inspection.
• Have a pressurized spray booth equipped with baking capabilities and a fresh air-supplied respirator system that meets current local, state, and federal requirements.
• Have the ability to complete and verify four-wheel alignment through computer printout either from an in-house alignment system or a qualified sublet service with same-day service.
• Offer a written limited lifetime warranty against defects in workmanship.
• Have the ability to remove and replace suspension components, wire harnesses, cooling system components, and supplemental restraint system (SRS) components in-house.
• Have the ability to remove and install High Voltage batteries and drive motors in-house.
• Have the ability to evacuate, reclaim, and recharge vehicle air conditioning systems using EPA compliant in-house equipment and certified technicians.
• Utilize Tesla "Toolbox” software as necessary to complete required Toolbox diagnostic work in house.
• Provide proper safety equipment and work environment for all employees.
• Have a documented on-going system for measuring, tracking, and reporting customer satisfaction.

1.4 Repair Procedures Requirements

TABSs must follow the requirements for repair procedures, as well as have available all of the required tools outlined in the Tesla equipment list.

• There is NO pulling allowed on Tesla vehicles. Structural repairs require the use of a frame bench/rack system with specific measuring and/or dedicated fixtures, with the exception of the structural repairs listed in BR-16-10-008, “Structural Repair Procedures Not Requiring a Frame Bench”. Refer to BR-14-10-004, “Structural Repairs”, and BR-16-92-006, “Approved Frame Bench Systems” for more information.
• TABS are required to maintain separate hand tools for use on aluminum, which are not to be used on steel.

Tesla's intent is to facilitate affordable compliance with the mandates required to properly repair its vehicles. For this reason, Tesla negotiates with equipment manufacturers to provide equipment directly to TABS, at the lowest price negotiable, with no margin for Tesla.

1.5 Operating Standards Compliance and Audits

Tesla reviews the approval status of a body shop every 2 years by a physical or virtual review of the TABS facilities by Tesla, or by a representative appointed by Tesla.

1.6 The Approval Process

The steps below are an overview of the TABS application and approval process. A flowchart of the process also appears below.

• Submit a completed Tesla Authorized Body Shop onboarding questionnaire (found on the landing page of the TABS website)
• Once contacted by Tesla onboarding team:
• Sign and return the Non-Disclosure Agreement
• Sign and return the GTC
• Complete a physical facility virtual tour
• Pay Program registration & training fee
• Purchase required Tesla tooling
• Complete Tesla training
• Pass a site validation demonstrating ownership of all required tooling and equipment listed in the Tesla tooling list
• Receive Electronic Parts Catalog access
• Begin having work referred from Tesla

1.7 Training Requirements

Each TABS is required to meet the Tesla training requirements to perform structural and non-structural repair work on Tesla vehicles. Only technicians at a TABS who possess a current and valid I-CAR certificate for aluminum and steel welding and/or structural repair may perform those types of repair work on Tesla vehicles.

1.8 Training Course Requirements

All staff performing any work on Tesla vehicles are required to complete the Tesla online safety courses “Electrical Fundamentals” and “Model S, X, 3, Roadster HV Disablement”.

Primary Structural Repair Location:

• Electrical Fundamentals: Required for all shop staff, including helpers and detailers
• Model S, X, 3, Roadster HV Disablement: Required for all shop staff, including helpers and detailers
• Model S, X, 3 Mechanical, Electrical and Trim: Required for a minimum of 2 techs
• Model S, X, 3 Structural Repair: Required for a minimum of 2 techs
• Aluminum & Steel Structural Welding: Required for a minimum of 2 techs
• I-CAR aluminum welding certification WCA03 and steel welding certification WCSO3 (or proof that the certification has been renewed within the last 2 years: Required for a minimum of 2 techs

Satellite Cosmetic Repair Locations:

• Electrical Fundamentals: Required for all shop staff, including helpers and detailers
• Model S, X, 3, Roadster HV Disablement: Required for all shop staff, including helpers and detailers
• Model S, X, 3 Mechanical, Electrical and Trim: Required for a minimum of 2 techs

Section 2: Program Terms and Working Relationship with Tesla

Tesla Approved Body Shops are required to meet and adhere to the Tesla Body Repair Program Operating Standards including all current, referenced Body Repair documents such as, but not limited to, training and tooling requirements.

2.1 Program Terms

All TABS will be reviewed on the following performance criteria:

• Quality - Vehicle repair and customer experience
  • Customer survey (92% CSI minimum required):
  • Was the fit & finish satisfactory?
  • Did everything function correctly?
  • Was it done on first target date given?
  • Did customer have to return or re-visit repair for any reason?
  • Did customer have to contact shop for information or were updates delivered to the customer at satisfactory intervals?
• Time (11 day cycle time average required)
  • Keys to keys
  • No backlog (wait to get in)
  • Number of parts orders – maximum of 2 per VIN
  • Timing of parts orders (should all be ordered in Repair Planning, not throughout the duration of repair)
• Cost
  • Customer survey
  • Competitive rates
  • Insurer feedback

CSI scores for TABS translate to a 1–5 star rating listed on the Tesla Authorized Body Shop locator website. Tesla will refer work to TABS based upon the 1–5 star rating (highest first) and other considerations.

2.2 Parts Discount

TABSs receive a discount of 30% off of the recommended retail price for all parts ordered through Tesla. This policy is subject to change without notice.

No pricing of Tesla parts above the recommended retail price is allowed.

The parts discount and referral of work will be suspended for locations in violation of training requirements until qualifications are met.

2.3 Warranty Rate and Procedure for Tesla Paid Work

The labor rate for all TABS Tesla paid work for body, paint, structural, and mechanical work is set forth in the GTC addendum between Tesla and the body shop. Any deviation from the rates set forth in the GTC addendum will be considered grounds for removal from the TABS Program.

Section 3: Facility Requirements

The proposed TABS must provide details about and photos of their facilities, as part of the online application.

3.1 Location Types

Primary Location:

• Primary locations are authorized to complete all Tesla structural body repairs and are required to actively maintain compliance to the TABS Program.

Satellite Location:

• Satellite locations are authorized to complete all Tesla NON-structural body repairs.
• Multi Shop Owners (MSOs) who own a TABS primary location may apply for approval to add additional locations as TABS satellite locations, as long as the primary location is in good standing.
• A Tesla customer must be allowed to drop their vehicle at any location belonging to the MSO.
• Multi Shop Owners must move vehicles requiring replacement of restricted parts to their primary location at no inconvenience or cost to the vehicle owner.
• Multi Shop Owners may repair Tesla vehicles at any of their locations as long as the following conditions are met:
• Technicians must meet the appropriate levels of Tesla training and authorization (be in good standing) to perform any work involving restricted parts (documentation signed by tech performing restricted repairs required to be kept permanently on file and available upon Tesla's request).
• All shop personnel (technicians, helpers, and detailers) complete the Tesla online safety courses “Electrical Fundamentals” and “Model S, X, 3, Roadster HV Disablement”.
• The location's performance metrics (KPIs) meet or exceed Tesla requirements.
• The location meets facility and equipment requirements for the type of work (structural or cosmetic) being performed.
• All terms of the GTC and these Operating Standards are met and in good standing.

3.2 Exterior

• The exterior surfaces of the TABS building structure, cladding, fascia, etc. must present a well-maintained, presentable image.
• The TABS must have a securely-fenced parking area.

3.3 Signage

Tesla supplies certification plaques only after the proposed TABS has performed the full audit and has successfully passed. Certification is good for 2 years from the completion of the TABS onboarding process or from successfully passing the TABS compliance audit.

3.4 Parking and Vehicle Security

• The customer parking spaces must be clearly designated and well-lit.
• Parking and storage of damaged vehicles must be concealed from visitors and customers.
• Vehicles must be stored at the TABS in a manner that prevents further damage (e.g. water ingress, vandalism, theft, etc.).

3.5 Customer Reception

• An area must be designated for customer reception and this area must be kept clean and neat.
• The business hours of the TABS must be clearly displayed in the reception area and on the exterior of the building.
• Customer-only restrooms segregated from staff facilities must be available and accessible from the reception area.

3.6 Workshop

The workshop area must contain the following dedicated areas:

• Estimating/blueprinting/Repair Planning area
• Aluminum repair area (curtain acceptable)
• Paint mixing room
• Paint booth
• Detailing and car cleaning area

3.7 Access

Insurance appraisers must be permitted unrestricted access to Tesla vehicles, parts, and any Tesla published repair procedures and documentation upon request, so that the approval portion of the repair cycle time is minimized.

3.8 Paint Booth Specifications

The TABS must have at least one downdraft paint booth capable of bake operations. The paint booth must meet all state, local, and federal regulations.

Section 4: Communication and Information Technology

4.1 Repair Tracking Compliance

TABS are required to provide repair status data to Tesla via tracking software of Tesla's choosing. Thorough and accurate reporting of required information and status is an absolute requirement for Tesla Body Repair Program participation.

4.2 Internet

The TABS facility must have high-speed Internet with wifi. Workshop staff must have access to the Tesla Body Repair information provided via the internet on a computer with wifi access which can be used on vehicles undergoing repair.

4.3 Computer Equipment

The TABS facility must have a laptop computer that meets the requirements listed in BR-14-92-001, “Computer Requirements for Toolbox”. Workshop staff must have access to the computer to reference Tesla Body Repair procedures, Service bulletins, and Service Manuals, and to perform Toolbox-related diagnostic repairs.

Section 5: Equipment and Consumables Specifications

5.1 Paint Systems

Refer to BR-14-10-009, “Paint Systems That Meet Tesla Warranty Requirements” for a list of paint systems that meet the warranty level required of TABS.

5.2 Approved Adhesives

Only the adhesives specified in BR-15-92-008, “Approved Structural Adhesives and Urethane Sealants", are to be used for the structural repair of Tesla vehicles.

5.2.1 Recommended Adhesive System for Composite Repairs

The recommended adhesive system for Roadster bonded body panels is specified in BR-17-10-006, “Recommended Urethane Adhesive for Roadster Front Crash Structure”.

5.3 Approved Tooling

For a current listing of required tools and equipment, refer to the TABS tooling requirements.

Section 6: Quality Program Procedures and Best Practices

In order to minimize parts orders, streamline insurer approval, eliminate unwanted discovery of hidden damage during repair, and minimize repair cycle time, All TABS are required to "Repair Plan" (blueprint) Tesla vehicles, rather than just de-trimming and disassembling as repairs progress.

TABS are required to:

• Dismantle vehicle completely when vehicle enters workshop, to expose all primary and secondary accident damage, as well as anything that will break during disassembly.
• Remove every part, nut, bolt, fastener, clip, piece of trim, glass etc. so that no parts are discovered during downstream dismantle, that could be exposed by taking all apart up front.
• Includes cutting open layered regions (quarter panels, pillars, etc.), if not repairable, to expose hidden damage, so internal parts can all be ordered up front.
• Attempt to repair aluminum exterior panel and bumper cover cosmetic damage to reduce parts needed, and the associated time and complications that accompany them (wrong parts, damaged parts, parts delays, etc). Labor is “in stock”.
• Read all repair procedures to make sure any prerequisite parts and consumables are also ordered for structural repairs.
• Maintain permanent, physical documentation signed off by a properly trained technician who performed any restricted parts replacement.
• Store parts on a parts cart. DO NOT store parts in the car.

Insurance approval is greatly streamlined when:

• Repair attempts are already done (variability of “will it fix?” is eliminated).
• Parts needing replacement are removed and clearly visible as to why they need to be replaced.
• Tesla repair documentation has been reviewed and is available to share with insurance inspector should questions arise as to the necessity of certain operations.
• Tesla Service and Body Repair documentation must be shared with insurance company if requested.

TABS assumes full responsibility for any defects or consequences resulting from repair workmanship.

6.1 Care of Customers Vehicles

All vehicles undergoing repairs must be protected with the following:

• Seat covers
• Steering wheel protection
• Floor mats
• Car covers
• Glass protection paper when welding or grinding

6.2 Remote Access Disable

Upon receipt of vehicle, TABS should disable remote access to prevent undesired system functions from occurring via the customer's phone app. Place a “Remote Access Disabled” Card on the Dash.

Refer to BR-16-00-004, “Disable Remote Access When the Vehicle is at the Body Shop" for more information.

6.3 Communications Log

Each TABS must maintain a communications log of all communication with the customer in their Body Shop Management System. This information must be complete, and accurately date and time stamped. The documentation of customer correspondence must be shared with Tesla when requested.

6.4 Customer Communication Requirement

The TABS must update each Tesla customer every 3 days or less. Customer feedback indicating the customer had to manage their repair will be grounds for removal from the Tesla Body Repair Program.

Section 7: Ordering Parts

An initial parts should be placed immediately after liability is accepted and the customer authorizes the repair so that work can start as quickly as possible. A secondary parts order is acceptable following a full (100%) dismantle (repair Plan).

Damaged parts must be claimed within 24 hours of delivery.

All parts are ordered through the Electronic Parts Catalog (EPC) (https://epc.teslamotors.com/). Enter the VIN accurately to drive options and supersession logic.

7.1 Tesla Paid Work

For warranty or any other work where Tesla is paying for the parts, the TABs will order parts through the EPC, including the normal 30% discount from Tesla. The TABS will re-bill those parts back to Tesla at a 20% discount, realizing a 10% margin on parts to cover handling costs.

All Tesla-owed final bills MUST clearly read “FINAL BILL” on the first page.

All Tesla-owed final bills MUST be accompanied by the TABS Purchase Order (PO) cover sheet. Tesla will not reimburse the TABS for any repair work if final billing is not accompanied by the completely filled out PO cover sheet attached with the final bill at time of upload.

7.2 Past Due Invoices

Any TABS that is not current on their invoice payments (any invoices over 30 days past due) will not receive additional parts orders or referral work until invoice payments are made current.

7.3 Work In Progress

TABS must update vehicle status daily in the Tesla-required vehicle tracking tool. TABS are required to update the Electronic Parts Catalog repair status tool every day and contact the customer every 3 days with a repair status update.

7.4 Supplemental Damage

TABS are required to Repair Plan (blueprint) all Tesla vehicles in order to eliminate supplements.

The number of parts orders is scrutinized by Tesla. 2 orders per vehicle are acceptable:

• 1st order from photos or initial estimate
• 2nd and final order after Repair Planning (Blueprinting) is complete)

7.5 Final Quality Control

The TABS manager is required to visually and functionally check every line of the final bill against the finished vehicle before calling the customer (this is a functional test, not a glance at the car in the parking lot):

• Verify all trim fits symmetrically side to side, and is fastened tightly.
• Verify all functions that might be affected by any components replaced or removed and reinstalled function correctly by physically testing (door handles, windows, wipers, HVAC, key fob and proximity functions, etc.).
• Test drive if vehicle had structural repairs, suspension repairs, wheel alignment, or any operations touching parts utilized by Auto Pilot. Refer to BR-16-00-003, “Calibrating the Driver Assistance System”.
• Re-enable Remote Access when final quality control is complete and remove the “Remote Access Disabled” card. Refer to BR-16-10-004, “Disable Remote Access When the Vehicle is at the Body Shop” for more information.

TABS are required to return customer vehicles to customer-specified State of Charge (SOC) before pickup.

Signature Page

I, ___________________________ (agent), with appropriate credentials to bind ______________________________ (Company Legal Name) to the terms and conditions of these operating standards, fully understand and guarantee compliance to each of the requirements set forth above

Signed: X______________________________ Title _________________________ Date_____________