I WANT MY TESLA NOW!
You have engineered and incredible automobile in the S and I'm not looking forward to waiting a couple more years for my Model III. The current Model S with the options I want is too much of a financial stretch over the Model III for me to justify.
End the long delay for the Model III and make a more affordable S
No doubt the cost of each Model S is starting to come down at this point with the ramp up and manufacturing efficiencies. I know Tesla cannot substantially lower the cost of the existing Model S configurations without upsetting all those early adopters. Pretty soon you will be running through all the folks who can afford $85k for a reasonably optioned S. In order to keep your sales increasing, consider some additional model engineering to keep sales building on the S until the III arrives.
Extend the strategy you already started with the S60/S75
I wish Tesla would come out with a new Model S45 for $55k. Make it upgraded to a Model S60 at some point in the future for around $8k.
Offer Daily Battery Upgrades Over the Air from 45 to 60 for Infrequent Road Trips
I really do not need the range of the larger battery other than road trips just a few times a year. For those limited use cases, I could rent a car. However more convenient, perhaps Tesla could allow daily over the air upgrades to the full 60 battery for around $50 a day. It may cost me around $500 a year for the additional battery on the 10 or so days I am on long road trips, adding up to another $3k in income for Tesla over the 6 years I plan to own the car. When I trade it in, Tesla can upgrade the battery for nothing and resell it at a $3k-$5k higher value making up some of the difference in the lower initial price. Besides that with all the headroom between the 45 to 60 the battery should be in better condition resulting in lower warranty claims.
No doubt there will be folks who are not so good with math that use the daily 60 upgrade 20 to 30 times per year, but still don't pay for the 60 upgrade. Resulting in substantial incremental revenue for Tesla and more than they would have received at the higher price of the 60.
Reduce Range Anxiety by Charging the S45 to 50KWH.
Allow S45 to charge to 50KWH and software limited to 0 miles of range at 5KWH remaining. The car would only allow you to use the range of a S45. If I get down to 0 miles of range on my S45(meaning 5KWH remaining but not included in range), I could press a button on my Tesla, pay the $50 to do a daily over the air upgrade to a S60 and drive that extra 5KWH to get to the nearest charger.
Knowing I have that as a backup can save me from getting towed in the range limited S45 and earn some additional income for Tesla. It would also limit some of the range anxiety I might have in an S45, knowing I have a backup plan. Just like folks have a parachute when flying a Cirrus, I would have a Parachute button in my Tesla that gives me access to an emergency 5KWH already in the pack for $50. Half the cost of a tow and 100% less hassle.
Upgrade the Standard Equipment Slightly
Make it slightly more affordable include leather seats and satellite radio as standard.
I love talk radio on Satellite and hard for me to justify spending an additional $2500 for Satellite radio. It's a little crazy when companies like GM include it for next to nothing. While you are at it, borrow some SpaceX engineers with good with satellite communications skills and ask them figure out how to make automotive Satellite radio work without a sunroof on the S!
Leather seats hold up better and will increase the resale value on all Model S in the future with the general better condition of the seats at resale. I know Mercedes and BMW come with vinyl seats standard, be a step above the competition. I have a 2012 Mercedes with vinyl seats now. In my opinion, the standard seats in a BMW or Mercedes, I have owned both, are much better than what comes standard in the current S. Overcome that by offering leather as standard on the S.
These slight option changes would put the price closer to a III for buyers, but not too close.
Throw in a Trailer Hitch option
Create a trailer hitch option on the S now, so that I can easily tow my bikes or the occasional light trailer. I have heard you say this will be on the III and it is something I really want. I would hope the engineering and testing are straightforward, with it already on the X with a similar frame.
Make it up to many poor folks like me that wanted to buy a 40, but did not realize it was going away.
I was all lined up to by an S40 several years ago, it was the only model I saw as something I could afford. I sat down and did the math, it would have been a great deal, but was gone before I put my money down.
Avoid a Stock or Debt Offering buy upping the Cash Flow Now
No doubt an S45 will increase Tesla revenues with just a slight hit to margin. Probably made up for by all the III buyers you can convert right now! The margin on a S45 at an average price of around $65k with options has to be better than a Model III selling at around $43k. Blow the analyst out of the water with 150k Teslas manufactured and sold in 2017, not even including the III!
This cash flow from a slightly lower model could help alleviate some of the pressure if for some reason the Model III is slightly delayed. I know this was what you were going for when you offered the 60, but that did not go quite far enough for a penny pincher like me... Perhaps you were not ready to manufacture that many cars before, but hopefully you are ready now and can really stoke the demand with an S45/S60
Come out with the options listed above and I will be buying now at a much higher price than waiting years from now to get my Model III! I would love to use my $1k deposit in April or March of 2017 instead of June 2018.
I sing your praises and spread the word, many people ask me if I work for Tesla. Not sure if they are annoyed with all the Tesla talk or just think I am over enthusiastic and highly informed.
In the near future I would prefer to talk about it with a little more first hand knowledge than from what I get reading about it online and brief test drives!
Please think about it Tesla...
