5/3/13 Announcement press release up

[brianman]

Well, there is also a psychological factor of "new" vs. "preowned". I believe any product with any kind of "luxury" element attached to it loses 10-20% of its value the moment you take it out of the box and use it.

I kind of wish my Model S had an original box. It would have been challenging to transport home though.

 

[kcveins]

I kind of wish my Model S had an original box. It would have been challenging to transport home though.

But it would be fun for the kids to play in...

 

[AlMc]

This is an improvement over the original 'lease' offer and there is no doubt these are great cars. It would appear that the reasons for this program are to put more people in a financial position to afford an 'S' AND to make buyers comfortable that this vehicle will maintain a residual value equal to it's class ICE competitors. However, it is basically unfair to the buyers/potential buyers in the 42 states where this financing option/guarantee is not available and to the people who would pay cash. Brand loyalty is built in many ways. One of those ways is to give all your customers/clients the opportunity to take advantage of all your offerings. Personally, I would have made this residual guarantee available to all my customers for a limited time or to a limited number of vehicles. If the program was well accepted and I felt that it was drawing in more consumers I would extend it. We have all described this car and company as a 'game changer'. Offering this peace of mind residual value guarantee to all would have been in line with a company that wants to change the game and is confident enough in its product that it would make such an offer.

 

[Krugerrand]

This is an improvement over the original 'lease' offer and there is no doubt these are great cars. It would appear that the reasons for this program are to put more people in a financial position to afford an 'S' AND to make buyers comfortable that this vehicle will maintain a residual value equal to it's class ICE competitors. However, it is basically unfair to the buyers/potential buyers in the 42 states where this financing option/guarantee is not available and to the people who would pay cash. Brand loyalty is built in many ways. One of those ways is to give all your customers/clients the opportunity to take advantage of all your offerings. Personally, I would have made this residual guarantee available to all my customers for a limited time or to a limited number of vehicles. If the program was well accepted and I felt that it was drawing in more consumers I would extend it. We have all described this car and company as a 'game changer'. Offering this peace of mind residual value guarantee to all would have been in line with a company that wants to change the game and is confident enough in its product that it would make such an offer.

Two things:

1)Tesla's main goal: to accelerate the worldwide adoption of EV's.
2)Owners with cars that have not/do not take part in the financing program still benefit from the personal guarantee. The personal guarantee sets the used Model S market for ALL. There essentially already is a 'limited number of vehicles' - those part of the financing program. Adding a limited time etc... only causes someone else (perhaps you again) to say that the limited time wasn't long enough, therefore not fair and therefore not a big enough show of confidence in the product, etc., etc., etc... Perhaps in the future when Tesla is making real money, the guarantee will be extended, but I'm really not sure how much further out on the limb you want Mr. Musk to go at this point; he's already hanging his butt over the ledge.

 

[bonnie]

Owners with cars that have not/do not take part in the financing program still benefit from the personal guarantee. The personal guarantee sets the used Model S market for ALL. There essentially already is a 'limited number of vehicles' - those part of the financing program. Adding a limited time etc... only causes someone else (perhaps you again) to say that the limited time wasn't long enough, therefore not fair and therefore not a big enough show of confidence in the product, etc., etc., etc... Perhaps in the future when Tesla is making real money, the guarantee will be extended, but I'm really not sure how much further out on the limb you want Mr. Musk to go at this point; he's already hanging his butt over the ledge.

+1
You make a really good point, one I had not really thought about. The guarantee will impact the overall used Model S market price. Genius.

And yeah, give the guy some credit. You can choose to buy or finance/lease. No one is forcing you to do it one way. We used to joke at a former employer that if we handed out unexpected large bonuses, we'd have people complaining that we should have told them in advance so they could factor it into their tax strategy. Musk is handing out an unexpected bonus and we're talking about it's not good enough? Seriously?

 

[Bardlebee]

I guess I still don't understand the leveraging of the EV purchase tax as down payment thing.... how does WF use your EV tax incentive as a down payment? This confuses me.

 

[vfx]

Originally Posted by ShortSlaver
We all know this, but it's nice to see:

' Tesla has delivered almost 10,000 electric vehicles to customers in 31 countries.'

That sounds right. A week or two ago I was looking at deliveries being right around 9,500 by the end of April. Probably closer to 9,700 right now and they could well hit 10k by the conference call.....

It appears you are not counting Roadster sales.

An 85kWh Model S ... also almost certainly the most efficient car ever made on a per pound basis. I haven't actually done the math,....

Roadster again.

 

[CyberDutchie]

I guess I still don't understand the leveraging of the EV purchase tax as down payment thing.... how does WF use your EV tax incentive as a down payment? This confuses me.

No, you pay the downpayment. You get about the same amount back through the federal tax deduction and using local and state rebates.

 

[vfx]

...
2)Owners with cars that have not/do not take part in the financing program still benefit from the personal guarantee. The personal guarantee sets the used Model S market for ALL. ....

Exactly to what I have been saying that the resale value of EV should be better than ICEs but they are subject the the legacy resale values of ICEs since there is not enough history to support the advantages yet. I was gving it about 10 years.

What Tesla has done here with this guarantee is accelerate this public perception of Tesla's resale value and with any luck it will overflow into all fully electric cars.

 

[brianman]

Is anyone else disappointed that this guarantee won't apply to those who purchased their car before the announcement and not through Tesla financing? If I had known, I would have gone with them instead of Pen Fed.

Well said, AIMc. And Don Pedro, I don't think Tesla owes me anything. I was merely expressing an opinion. That is allowed, right?

Musk is handing out an unexpected bonus and we're talking about it's not good enough? Seriously?

I'm not sure which post you're referring to so I've pulled out hvb's post since it's the first one I recall on this discussion point. The word used was "disappointment" not phrasing like "it's not good enough". Perhaps you're referring to the tone of some of the replies (or a different post entirely).

 

[bonnie]

I'm not sure which post you're referring to so I've pulled out hvb's post since it's the first one I recall on this discussion point. The word used was "disappointment" not phrasing like "it's not good enough". Perhaps you're referring to the tone of some of the replies (or a different post entirely).

Hahah! Not EVERYTHING is about you, Mr. brianman. Yes, you are correct. I was referring to the tone of some of the replies.

 

[AlMc]

+1
You make a really good point, one I had not really thought about. The guarantee will impact the overall used Model S market price. Genius.

And yeah, give the guy some credit. You can choose to buy or finance/lease. No one is forcing you to do it one way. We used to joke at a former employer that if we handed out unexpected large bonuses, we'd have people complaining that we should have told them in advance so they could factor it into their tax strategy. Musk is handing out an unexpected bonus and we're talking about it's not good enough? Seriously?

I believe you have missed my point. I see the marketing strategy here as two fold. First, open up the 'S' to more potential purchasers. Second, to allay fears of many who would buy the car versus an ICE sports sedan but are reluctant because they have some historical perspective on the ICE residual value but none on the 'S'. This marketing tool/offering is limited to people that live in 8 states. The other 42 states are left out due to some legal wrangling that has yet to be worked out, I assume. This is not a lease program where a definite residual value needs to be set. Thus, anyone who does not live in one of the 8 states where this program is available do not have the opportunity to participate either in the benefit of the loan program or the guaranteed residual value. Certainly Mr Musk and the rest of the Tesla Team need to be congratulated on making a superior 'game changing' car and for some of the innovative marketing ideas they are employing. I will get benefit from setting a residual value baseline, even if it is artificial. All this builds brand loyalty. Excellent. However, what can hinder the building of such loyalty is the fact or perception that a benefit given to some customers is not available to all customers when they are paying the same amount for their vehicle.

- - - Updated - - -

PS..If I have offended anyone, I apologize. I am trying to offer an opinion that hopefully will encourage thoughtful and courteous discussion.:smile:

 

[brianman]

Hahah! Not EVERYTHING is about you, Mr. brianman. Yes, you are correct. I was referring to the tone of some of the replies.

Chuckle at "everything". Nah, I didn't think it was. And I'm glad it's not. I'm an introvert mostly.

- - - Updated - - -

However, what can hinder the building of such loyalty is the fact or perception that a benefit given to some customers is not available to all customers when they are paying the same amount for their vehicle.

Well stated.

 

[hvb]

Obviously, I agree that features should benefit all owners. It's only fair, right? On the other hand, I can also see why this guarantee is geared toward new owners. Ostensibly, someone who already owns the car had enough confidence in Tesla to take the risk of early adoption. The resale value guarantee helps to court those who are still on the fence and need that extra bit of assurance to take the plunge.

After having the Model S for the last two months, I can say with great enthusiasm that it's an awesome car. I feel more conviction than ever than Tesla is a superlative company. I don't plan on selling my car anytime soon, so that's not why I'd like the guarantee. I guess I just like hedging my bets against the off-chance that some unforeseen defect or recall might sink the company.

 

[AlMc]

I was just on the Official Tesla Forum. One Subscriber/purchaser indicated that this product was not available in his state. However, he indicated that he set up to sign the documents in California, where it is allowed...He had toFly/drive there and was allowed to participate in the Wells Fargo/Tesla guaranteed residual value financing. He indicated he also will still take delivery in his own State. No tax in California, but will pay applicable taxes in his home state. Interesting. Anyone else do this?

 

[Jack_L]

It appears that this financing product is actually available in states other than those listed online. I live in Mass and have been told that the guarantee program/WF financing is available to me. I even called back a few days later, spoke with a second Tesla rep, and again was told I can participate. It seems their program is growing faster than the website can keep up with so I'd advise anyone interested to check with Tesla directly to check actual availability.

 

[Krugerrand]

This marketing tool/offering is limited to people that live in 8 states. The other 42 states are left out due to some legal wrangling that has yet to be worked out, I assume. This is not a lease program where a definite residual value needs to be set. Thus, anyone who does not live in one of the 8 states where this program is available do not have the opportunity to participate either in the benefit of the loan program or the guaranteed residual value. I will get benefit from setting a residual value baseline, even if it is artificial.

Nobody in Canada or Europe or Asia can get in on this program either. Have a little patience. It'll come. Your first post made the assumption/gave the impression that it's going to be like 'this' forever and how terribly unfair that just such and such a group gets benefits but not the rest. First, the world isn't fair and that's just sometimes how the cookie crumbles. You don't like your set of circumstances, then change them. But in truth, it's (the financing program) not going to be like 'this' forever. Indeed, have we not just had a change to it and it was only a couple weeks old? :wink:

However, what can hinder the building of such loyalty is the fact or perception that a benefit given to some customers is not available to all customers when they are paying the same amount for their vehicle.

Some people think it needs to be all about them and simply can't see the bigger picture and how they are benefitted anyway, unless their name is up in lights. You can't change what those people think or perceive, so there's no sense trying. Everyone who owns a Model S is benefitting from this financing program - just as it stands - whether they see it or not.