Exclusive From The Electric: In a Startup, Tesla Veterans Attack Detroit's Warranty Crisis

Last year, Ford paid out $5.8 billion in warranty claims on its vehicles, a 22% increase over 2023. General Motors spent $4.5 billion on such claims, 12% more than its 2023 number. And Tesla paid $1.45 billion, a 19% year-on-year increase.

Detroit has a car repair problem going back to the 1970s. It was one reason Japanese carmakers managed to overwhelm their American rivals. The issue—Detroit’s inability to build reliable cars and fix them quickly—persists: Ford issued 89 recalls in the first half of this year.