Call me cynical but hear me out...

[nando2323]

Am I the only one that thinks this opening up Model 3 orders to everyone 3 days before q2 end just a cash grab move? Trust me I am a huge Tesla fan, and have been a stock holder since it was $80 a share, and think whatever they need to do to keep things afloat is fine. I am also taking delivery of my Model 3 in 2 weeks in NY. Going by the numbers and the Bloomberg tracker looks like they will not make their 5K per week units as promised, which to me is blah, but I'm not on the board of directors or a majority stake holder. So opening up more orders and making the even higher end model a little more appetizing sounds like a cash grab to me. Then can get all these people to hand over another $2500 and won't have to deliver a car for 3-6 months. I ordered my car on 4/27 and will be taking delivery on 7/16 that's almost 3 months from the moment I handed them another $2500. I'm not complaining trust me I am all in on Tesla becoming successful but I just found it a little strange that it came so suddenly right before Q2 end when Elon said profits will be made.

 

[electracity]

Another reason for a longer invite to production time is the need to clarify production planning. Before now there was just one car in a few colors. But now they need to plan to build different cars.

I think the increased cash flow is a secondary benefit.

 

[JoaoD]

Am I the only one that thinks this opening up Model 3 orders to everyone 3 days before q2 end just a cash grab move?

Are you sure they are opening the configuration studio to everyone? From what other's are saying it seems like they are opening the possibility to configure the AWD/Performance version to everyone that had access to the configuration studio yet, but not everyone has been given access to the configuration studio yet.

Going by the numbers and the Bloomberg tracker looks like they will not make their 5K per week units as promised.

I wouldn't give much weight to the Bloomberg tracker since it started as a rip off from the work of the TMC community and it is manipulated to show different production rates based in which time zone you are accessing it from.

 

[Barklikeadog]

Am I the only one that thinks this opening up Model 3 orders to everyone 3 days before q2 end just a cash grab move? Trust me I am a huge Tesla fan, and have been a stock holder since it was $80 a share, and think whatever they need to do to keep things afloat is fine. I am also taking delivery of my Model 3 in 2 weeks in NY. Going by the numbers and the Bloomberg tracker looks like they will not make their 5K per week units as promised, which to me is blah, but I'm not on the board of directors or a majority stake holder. So opening up more orders and making the even higher end model a little more appetizing sounds like a cash grab to me. Then can get all these people to hand over another $2500 and won't have to deliver a car for 3-6 months. I ordered my car on 4/27 and will be taking delivery on 7/16 that's almost 3 months from the moment I handed them another $2500. I'm not complaining trust me I am all in on Tesla becoming successful but I just found it a little strange that it came so suddenly right before Q2 end when Elon said profits will be made.

Tesla is a different kind of car company, they wouldn't resort to questionable accounting or gimmicks to make the books look better than they actually are.

 

[nando2323]

Are you sure they are opening the configuration studio to everyone? From what other's are saying it seems like they are opening the possibility to configure the AWD/Performance version to everyone that had access to the configuration studio yet, but not everyone has been given access to the configuration studio yet.


I wouldn't give much weight to the Bloomberg tracker since it started as a rip off from the work of the TMC community and it is manipulated to show different production rates based in which time zone you are accessing it from.

From what I saw this morning on Facebook Model 3 Owners Club people were saying everyone is able to order now. I already ordered so I have no way of checking this, I have to trust what the Interwebs says. I agree that the Bloomberg "tracker" is most-likely not accurate but it is a measure, I guess we will see on the 1st what the real numbers are. I am confident that they can pull this off I just worry about what the bad mouthers (not a word) will run with this time, not that I really care people just like to say whatever gets other people talking. I can't tell you how many times people have said to me when I say I'm getting my model 3 in a couple weeks now. "Have you seen them burning down on the news?????" My reply is yeah I saw a Ford/Chevy/Whatever burning on the side of the highway last week, so what's your point?

 

[nando2323]

Tesla is a different kind of car company, they wouldn't resort to questionable accounting or gimmicks to make the books look better than they actually are.

Not sure if you're being sarcastic or not, but I would agree if there wasn't so much on the line at this point. All these shorters and long term investors are all counting down until end of Q2 to see if Elon made right on his promises.

 

[Zaxxon]

Day 2 reservationists still can't order (not all of them, anyway). And my 2nd reservation placed earlier this year can't, either. They opened all day 1 holders to all options (AWD, P). They have not opened all reservations to configure. Not even close.

 

[JoaoD]

From what I saw this morning on Facebook Model 3 Owners Club people were saying everyone is able to order now.

That's what I initially though was going to happen. But some people are reporting here in the forum that they are still not able to order.
And reservations outside North America cannot yet order too.
It may be seen as a way to influence Q2 balance, but if Tesla is confident they can deliver in the time frame promised if you order today, I think it's both good for costumers that can now know when they will get their cars and what incentives they will have, and also for Tesla that will have some more money on their books.
I don't think it's a cash grab since you are not forced to order, nor they are giving you anything negative in return for not ordering right away.

 

[ItsNotAboutTheMoney]

Am I the only one that thinks this opening up Model 3 orders to everyone 3 days before q2 end just a cash grab move? Trust me I am a huge Tesla fan, and have been a stock holder since it was $80 a share, and think whatever they need to do to keep things afloat is fine. I am also taking delivery of my Model 3 in 2 weeks in NY. Going by the numbers and the Bloomberg tracker looks like they will not make their 5K per week units as promised, which to me is blah, but I'm not on the board of directors or a majority stake holder. So opening up more orders and making the even higher end model a little more appetizing sounds like a cash grab to me. Then can get all these people to hand over another $2500 and won't have to deliver a car for 3-6 months. I ordered my car on 4/27 and will be taking delivery on 7/16 that's almost 3 months from the moment I handed them another $2500. I'm not complaining trust me I am all in on Tesla becoming successful but I just found it a little strange that it came so suddenly right before Q2 end when Elon said profits will be made.

I think your cynicism is misplaced. The proper cynical approach to this is to say that it's aimed at making sure that the Q2 "deposits" numbers don't show any kind of drop.

The emphasis is on profit in Q3 and Q4, so if anything they would really want to focus on grabbing the $2.5k in Q3 for Q3 and Q4 deliveries.

 

[nando2323]

Day 2 reservationists still can't order (not all of them, anyway). And my 2nd reservation placed earlier this year can't, either. They opened all day 1 holders to all options (AWD, P). They have not opened all reservations to configure. Not even close.

Oh ok so that makes more sense. I guess I was reading some really excited people passing on word of mouth that was not really accurate, and I passed it on myself. That makes sense then that all day one orders are open. Which kind of sucks for the day 2r's since Elon promised them openings like 3 weeks ago now from what I remember.

 

[ewoodrick]

Am I the only one that thinks this opening up Model 3 orders to everyone 3 days before q2 end just a cash grab move? Trust me I am a huge Tesla fan, and have been a stock holder since it was $80 a share, and think whatever they need to do to keep things afloat is fine. I am also taking delivery of my Model 3 in 2 weeks in NY. Going by the numbers and the Bloomberg tracker looks like they will not make their 5K per week units as promised, which to me is blah, but I'm not on the board of directors or a majority stake holder. So opening up more orders and making the even higher end model a little more appetizing sounds like a cash grab to me. Then can get all these people to hand over another $2500 and won't have to deliver a car for 3-6 months. I ordered my car on 4/27 and will be taking delivery on 7/16 that's almost 3 months from the moment I handed them another $2500. I'm not complaining trust me I am all in on Tesla becoming successful but I just found it a little strange that it came so suddenly right before Q2 end when Elon said profits will be made.

Just you.

I am quite sure that there has been a lot of strategizing going on in the company. Optimizing production to best take advantage of the US tax credit is something that is weighing heavily over their heads. With all the extended delays, it just about sounds if they may be thinking about push the 200k delivery until last quarter.
With the base model probably getting only 50% rebate, the question is the price of the car. How many basic vehicle reservations will be lost as the rebate disappears? Will the price of the car drop with the loss of the rebate to keep the sales up?
Is now the point where they want to take a breather, get more production lines working, and then start with 10k+ in the 4th quarter? I'm thinking that this may be the right time to get the lines reset, to get all of the options turned on, limit delivery to Canada and maybe other countries for a little and then work really hard at putting out 400,000+ vehicles in 4th and 1st quarters with the tax credit still in full force. That may upset a few folks, but effectively make a lot more happier.

 

[Zaxxon]

Which kind of sucks for the day 2r's since Elon promised them openings like 3 weeks ago now from what I remember.

Yes, especially since the delivery time after ordering also just got a large increase. My in-laws have a day 2 res, have been ready to order first-prod for months, and are getting quite annoyed.

 

[nando2323]

Just you.

I am quite sure that there has been a lot of strategizing going on in the company. Optimizing production to best take advantage of the US tax credit is something that is weighing heavily over their heads. With all the extended delays, it just about sounds if they may be thinking about push the 200k delivery until last quarter.
With the base model probably getting only 50% rebate, the question is the price of the car. How many basic vehicle reservations will be lost as the rebate disappears? Will the price of the car drop with the loss of the rebate to keep the sales up?
Is now the point where they want to take a breather, get more production lines working, and then start with 10k+ in the 4th quarter? I'm thinking that this may be the right time to get the lines reset, to get all of the options turned on, limit delivery to Canada and maybe other countries for a little and then work really hard at putting out 400,000+ vehicles in 4th and 1st quarters with the tax credit still in full force. That may upset a few folks, but effectively make a lot more happier.

I'm sure it's just me but I don't get why people are reserving these cars and banking on a rebate that they might not get, or fully understand how it works to tell you the truth, since it's not a guaranteed thing, but to each their own. When I bought my Model 3 I bought a $55K car not a potential $47500 car. I just don't get why people leverage such a splurge expense on whether or not you might get a tax credit. That's why I hate how Tesla and others advertise the price of their cars with "potential" savings etc.. Telsa never said it was a $27,500 car they said it was a $35k car and if someone can't afford a $35000 car I doubt that ther're paying enough in taxes to even get the full credit anyhow. My 2.

 

[MXWing]

My response to your cynicism.

 

[nando2323]

My response to your cynicism.
View attachment 312911

Well maybe cash grab was a bit too harsh of a term. I’ll re-phrase it. “Raising Revenue” there.

 

[MXWing]

Well maybe cash grab was a bit too harsh of a term. I’ll re-phrase it. “Raising Revenue” there.

Yeah when Elon said he didn’t need a cap raise he meant from the equities market. He didn’t exclude sucking blood from the cult.

 

[Barklikeadog]

I'm sure it's just me but I don't get why people are reserving these cars and banking on a rebate that they might not get, or fully understand how it works to tell you the truth, since it's not a guaranteed thing, but to each their own. When I bought my Model 3 I bought a $55K car not a potential $47500 car. I just don't get why people leverage such a splurge expense on whether or not you might get a tax credit. That's why I hate how Tesla and others advertise the price of their cars with "potential" savings etc.. Telsa never said it was a $27,500 car they said it was a $35k car and if someone can't afford a $35000 car I doubt that ther're paying enough in taxes to even get the full credit anyhow. My 2.

As a general rule, people just don't understand taxes. Every university should have a required tax course for all students, basic Econ doesn't do the job. Too many
highly successful people have no clue on this subject. If I had a dollar for every client who said about taxes/credits/invest 'Someone at work told me...'

 

[PeterK]

I think your cynicism is misplaced. The proper cynical approach to this is to say that it's aimed at making sure that the Q2 "deposits" numbers don't show any kind of drop.

The emphasis is on profit in Q3 and Q4, so if anything they would really want to focus on grabbing the $2.5k in Q3 for Q3 and Q4 deliveries.

Q2 is going to be a weak quarter for profits anyway. The $2.5k is just a (nonrefundable) deposit, so it increases cash on hand and deposit balance, which help Tesla, but it does nothing for profits until the buyer either gets his/her car or cancels the order and forfeits the deposit. It will help, however, with conversion rate statistics if Tesla decides to publish them, to refute the shorts and naysayers claiming low take-up by reservation holders. And as others pointed out, it will help with production planning as they produce more variants of types and options.

The fact that they are willing to unbundle some things like the Performance configuration gives me hope that they’re are a lot more confident about having a handle on the production process - though to take the cynical view, perhaps they felt they weren’t getting enough Performance orders...

 

[TM3_Jack]

Am I the only one that thinks this opening up Model 3 orders to everyone 3 days before q2 end just a cash grab move? Trust me I am a huge Tesla fan, and have been a stock holder since it was $80 a share, and think whatever they need to do to keep things afloat is fine. I am also taking delivery of my Model 3 in 2 weeks in NY. Going by the numbers and the Bloomberg tracker looks like they will not make their 5K per week units as promised, which to me is blah, but I'm not on the board of directors or a majority stake holder. So opening up more orders and making the even higher end model a little more appetizing sounds like a cash grab to me. Then can get all these people to hand over another $2500 and won't have to deliver a car for 3-6 months. I ordered my car on 4/27 and will be taking delivery on 7/16 that's almost 3 months from the moment I handed them another $2500. I'm not complaining trust me I am all in on Tesla becoming successful but I just found it a little strange that it came so suddenly right before Q2 end when Elon said profits will be made.

Totally agree with you cash grab. If Elon would keep things more conservative and realistic I think they would be in better shape.

There are things Tesla are amazing about update, enhancing, design, engineering...

other things reservation, fulfillment, realistic time NOT GOOD.

I'm not a Tesla Hater or Tesla Lover... I'm a rational Economic buyer... and sometime I feel as if their practice are NOT IN GOOD FAITH.

M3 might be my first and last Tesla Car.

 

[MXWing]

Q2 is going to be a weak quarter for profits anyway. The $2.5k is just a (nonrefundable) deposit, so it increases cash on hand and deposit balance, which help Tesla, but it does nothing for profits until the buyer either gets his/her car or cancels the order and forfeits the deposit. It will help, however, with conversion rate statistics if Tesla decides to publish them, to refute the shorts and naysayers claiming low take-up by reservation holders. And as others pointed out, it will help with production planning as they produce more variants of types and options.

The fact that they are willing to unbundle some things like the Performance configuration gives me hope that they’re are a lot more confident about having a handle on the production process - though to take the cynical view, perhaps they felt they weren’t getting enough Performance orders...

Considering they sell close to 100,000 S and X already - they could sell 100K P or AWD 3s pretty easily this year as well.