I think it is a matter of getting the tag more quickly as opposed to any financial incentives. But I could be wrong.
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The irony... wasn`t Franz designing Mazdas before? Of course, I do hope everyone is OK in the Mazda too.
With BYD building 34GWh capacity over the next few years it would seem they are well positioned to take the lead in China in EVs. It wouldn't be a level playing field to begin with. Also I would expect Nissan to take the lead in Japan, and the VW, BMW in Germany.
As for who will be the largest globally, my bet is on Tesla but I'm biased.
As for who will be the largest globally, my bet is on Tesla but I'm biased.
Tesla is still cleaning the inventory in China
http://club.autohome.com.cn/bbs/thread-c-2357-40066762-1.html
P85 without autopilot can be discounted as much as 180K-220K RMB (30K-35K USD). It almost eats up the entire GM or make it slightly negative.
So in Q1 delivery, there could be ~500 inventory sales with very light margin.
http://club.autohome.com.cn/bbs/thread-c-2357-40066762-1.html
P85 without autopilot can be discounted as much as 180K-220K RMB (30K-35K USD). It almost eats up the entire GM or make it slightly negative.
So in Q1 delivery, there could be ~500 inventory sales with very light margin.
This inventory could have as high of a margin as other newer cars, in spite of heavy discount. If scalpers refused to take delivery of these cars, they forfeited deposit. It could be not only initial ($5,000 ?) deposit, but also the deposit required to cover import tariffs. Do you know what deposits would be forfeited if a scalper is refusing delivery?
Thanks. So even counting the deposit forfeiture, the discount is a sizable hit to the top line, provided that discount that you quoted is for a brand new (not used as a demo or loaner car).
jhm
Well-Known Member
In my local Tesla store, there was virtually new P85+ that a buyer had refused on delivery because he had to get the P85D instead. I asked how much this set the buyer back. The answer was the deposit plus 5% of the purchase price of the abandoned car. So at least in the US, more than just the deposit is forfeited. I'm not sure if any of this applies in China, but it does show that Tesla does not take abandoned sales lightly.
sundaymorning
Active Member
Restocking fees are common practice in business. Amazon dealers do this all the time.
ev-enthusiast
Active Member
Glowing Model S P85D review from Autohome China: Tesla MODEL S P85D [Review Test Drive] Vehicle From The Future - YouTube
RationalOptimist
Member
Thanks for sharing. Hard to watch that w/o wanting one pretty badly. Demolishes most reasons not to buy. Please go viral !
smorgasbord
Active Member
How important is success in China to Tesla's overall success?
EVs provide a better driving experience, but the kind of cars Model S competes with are for back seat owners. How much does that negate a Tesla drivetrain advantage?
No matter what Tesla tries to do to the rear seats, the limiting factors are the high floor and low roof. Just how comfortable and "impressive" can the rear seats in a Model S be?
How important is timing here? Model X is coming out in half a year or so, and after that is the less premium Model 3. If Model S isn't going to be a huge success in China, what does that mean for Tesla? Can Model X be retrofitted to be suitable for rear seat owners? If not, then Model S is the vehicle that needs to be successful in China.
It would seem that Tesla is paying the price of US-centric design when China is now the biggest market.
EVs provide a better driving experience, but the kind of cars Model S competes with are for back seat owners. How much does that negate a Tesla drivetrain advantage?
No matter what Tesla tries to do to the rear seats, the limiting factors are the high floor and low roof. Just how comfortable and "impressive" can the rear seats in a Model S be?
How important is timing here? Model X is coming out in half a year or so, and after that is the less premium Model 3. If Model S isn't going to be a huge success in China, what does that mean for Tesla? Can Model X be retrofitted to be suitable for rear seat owners? If not, then Model S is the vehicle that needs to be successful in China.
It would seem that Tesla is paying the price of US-centric design when China is now the biggest market.
My take on very good questions that you pose:
Tesla needs to grow sales at a reasonable level to stay in business. Self imposed rate of growth is 50% yoy.
It is quite difficult to grow at such steep rate with one quite expensive model only and in a single geographical market. Hence expansion of both model offerings and expansion to different markets.
Expansion of model offerings requires innovation and production line adjustments. Geographical expansion requires infrastructure footprint and a lot of learning how to do business in different parts of the world. All of these take a lot of capital and time. Tesla is incredibly lucky to be doing their growth in favourable economic environment when people can afford to buy expensive cars and investors are throwing money in the market. Some stars must have aligned for Tesla to let it grow:love:
If Tesla can keep growing sales at the self imposed rate of 50% or similar yoy then imo it does not really matter how they achieve it and where they sell their cars. More options certainly help to achieve their targets. Initial models must be US centric as without US market there would be no Tesla.
Once Tesla starts selling more affordable model 3, they may have achieved more sustainable business model. Revenue stream on the back of the mass affordable car will take care of the business from that point onward.
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Yeah, I think the Model S was designed primarily for the U.S. market. It has done pretty well in a number of geographies where it is not particularly suited. Of course, there is no way for Tesla to fully predict how various markets will end up perceiving the Model S and what kind of success they would have with it, which I think has pleasantly surprised Tesla management.
I think the Model X, on the other hand, will have a very different market perception and may do much better in China if Tesla designs the rear cabin properly for that market.
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