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EAP Purchase Strategy

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I could see them discounting the after-sale upgrade price at some point in the future, especially at the end of a quarter - It's a quick way to grab a wad of cash and increase profit. They discounted the software upgrade from the Model S 60D to 75D a few months ago. I forget what the actual numbers were, but it was a significant savings over the stated upgrade price.

They discounted when they were ready to stop 60D manufacture and made the 75 the base. If they ever cut the upgrade cost of EAP or of they make it standard, then I could see a discount for the after sale upgrade, but otherwise I doubt it.
 
IMO there should be no additional cost for full self driving . It should just be EAP, which I still think is too expensive. I've been on the fence and ordered without selecting in the hope I could pay for it on day of delivery (preferably on credit card for points). Need to discuss my options with the sales person.
 
While I agree that it should not be discounted Ben Sullins of Teslanomics makes a case for why it should be free for all. Can't say I agree with everything but he makes points I didn't think of and worth considering. See video below.


Again, this guy doesn't know what he's talking about. AP is always running in shadow mode and sending data back to Tesla even if the customer does did not purchase AP. It sends back data on how it would have handled situations which help develop EAP further.
 
Again, this guy doesn't know what he's talking about. AP is always running in shadow mode and sending data back to Tesla even if the customer does did not purchase AP. It sends back data on how it would have handled situations which help develop EAP further.
Ben has some informative stuff, but you would think he would do more research sometimes.... some of his topics (and errors) are basic knowledge here.
 
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Ben has some informative stuff, but you would think he would do more research sometimes.... some of his topics (and errors) are basic knowledge here.
He's built up a large fan base of Tesla viewers and knows how to use them. I watched several of his videos including the one quoted previously, he constantly says false things and makes up numbers. He is a great presenter and if you didn't know any better you'd believe what he is saying because he looks like he researches a lot. But if you start with garbage data, you get garbage results.

What he is great at though is monetizing all of this.

"You don't want a Model 3, you want a Model S instead! Use my referral code!"
 
He's built up a large fan base of Tesla viewers and knows how to use them. I watched several of his videos including the one quoted previously, he constantly says false things and makes up numbers. He is a great presenter and if you didn't know any better you'd believe what he is saying because he looks like he researches a lot. But if you start with garbage data, you get garbage results.

What he is great at though is monetizing all of this.

"You don't want a Model 3, you want a Model S instead! Use my referral code!"
Like a free (whatever) Roadster. Not that there's anything wrong with that. But get there with good content. Sigh....
 
Since the TM3 purchase includes the EAP hardware, Tesla's margin on vehicles sold without EAP is much lower. Given the TM3 is a cheaper car for the masses, I suspect that once the lower cost trims are available the percentage of TM3 sold with EAP will be lower. 5k/35k adds quite a bit of cost on a percentage basis.

Regardless, I think there is a huge incentive on Tesla's part to lure TM3 owners to add EAP in the future to recapture margin on the EAP hardware. I could easily envision heavily discounted EAP offers for TM3 owners in the months/years to come, along with free trials and so on. I see the value in EAP, but man, $5k is a chunk of change. If they offered just TACC, i'd probably skip full EAP altogether. My strategy right now is to hold off on EAP and see how things progress. Yes, I may have months or even years of ownership w/o EAP, but my gut tells me i'll be able to jump on a good offer in due time.

What is the assessment from the peanut gallery? :)

This peanut thinks they will not offer a discount for owners to enable to EAP later. That does not seem to be the way they do business. Of course, I could be wrong. I'm just a peanut. :rolleyes:
 
I have to wonder if they are "Padding" the price up today on things like EAP and FSD. And some other options that have been climbing.
So as to give them a means of reducing the "shock" value when the federal incentives disappear.

They pretty much could cover the $7500 Tax Credit by "giving away" EAP and FSD later next year.

I'm tempted to jack my AWD config up to a Performance and drop EAP and FSD so I can be a assured I get the car "soon" and fork the rest over later next year by buying EAP and FSD later. Wife isn't going for it at the moment though. Not sure if they are shipping many (or any) Performance without the extra $5K Wheels and Brakes though (which would be too much of a stretch on budget), so that plan might not fly.

And if I did drop the EAP and FSD the profit margin might not be so attractive to get it to me so promptly.
 
I opted to get it without EAP because I would rarely use it. I would be a fan of the pay per mile or pay per ??? in order to use it. It would be nice to have for those dozen or so long drives we have per year. Otherwise my commute times , traffic, routes, and distances don’t justify getting it.
 
I have to wonder if they are "Padding" the price up today on things like EAP and FSD. And some other options that have been climbing.
So as to give them a means of reducing the "shock" value when the federal incentives disappear.

They pretty much could cover the $7500 Tax Credit by "giving away" EAP and FSD later next year.

I'm tempted to jack my AWD config up to a Performance and drop EAP and FSD so I can be a assured I get the car "soon" and fork the rest over later next year by buying EAP and FSD later. Wife isn't going for it at the moment though. Not sure if they are shipping many (or any) Performance without the extra $5K Wheels and Brakes though (which would be too much of a stretch on budget), so that plan might not fly.

And if I did drop the EAP and FSD the profit margin might not be so attractive to get it to me so promptly.

I doubt that any change in your order would get you the car sooner. But my advice is to keep EAP. Unless your situation is such that you'd really never use it, or you are someone who enjoys the act of driving so much that you'd rather just drive it yourself, EAP is well worth getting.

Today I was driving on the freeway, AP on and TACC set at 2 mph over the limit. There was a very big empty space in front of me, like maybe 1/4 mile or a bit less. In the old days I'd have been in a hurry to close the gap and get home ten seconds earlier -- and most importantly, make sure nobody got in ahead of me! Today I just relaxed, happy to be going a hair over the limit and let the people in the fast lane pass me.

Not only does AP make the car safer, it makes me a better driver.
 
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I doubt that any change in your order would get you the car sooner. But my advice is to keep EAP. Unless your situation is such that you'd really never use it, or you are someone who enjoys the act of driving so much that you'd rather just drive it yourself, EAP is well worth getting.

Today I was driving on the freeway, AP on and TACC set at 2 mph over the limit. There was a very big empty space in front of me, like maybe 1/4 mile or a bit less. In the old days I'd have been in a hurry to close the gap and get home ten seconds earlier -- and most importantly, make sure nobody got in ahead of me! Today I just relaxed, happy to be going a hair over the limit and let the people in the fast lane pass me.

Not only does AP make the car safer, it makes me a better driver.

I definitely intend to get EAP and FSD. But I want that car this year. And if I don't get some sign of progress I will take a more "insured route". Currently if you switch to Performance it says 2 months. If not it's 2-4 months. And I suspect a lot of folks will be jump on the last chance for $7500 tax break. Keep in mind i started VERY late in the game.
 
I was digging through threads and someone made a point about buying after purchase for business purposes.

If you use the car for business obviously % use applies. But made sense , purchase for $5.5k afterwards and sec 179 the software.

There are some rules the software needs to be “over the counter” and not custom. The fact that sales tax is applied dictates the software is not custom .

So any business users use this as a buying strategy?
 
Isnt it 5k now, vs 7k later right now (november 2018)? Thats what it looked like when I was looking at the configurator. As far as timing goes, I just decided to get a tesla on 11/26, a model 3 performance (I cant call it M3 because I come from the BMW world, so that means something different to me). I decided on EAP since that is a large part of getting a tesla to me. Car ends up being 70.5k before tax and that massive destination fee.

They matched me with a car in 24 hours, and called me to schedule delivery next week which I am not ready for, as I dont have the charging infrastructure.
 
Isnt it 5k now, vs 7k later right now (november 2018)? Thats what it looked like when I was looking at the configurator. As far as timing goes, I just decided to get a tesla on 11/26, a model 3 performance (I cant call it M3 because I come from the BMW world, so that means something different to me). I decided on EAP since that is a large part of getting a tesla to me. Car ends up being 70.5k before tax and that massive destination fee.

They matched me with a car in 24 hours, and called me to schedule delivery next week which I am not ready for, as I dont have the charging infrastructure.
Why not use superchargers until you have your level 2 charger installed at home?
 
They matched me with a car that has a "birthday" of 11/28 so that sounds like it basically just rolled off the factory. I decided to take it, so my delivery is 12/4 (after ordering tuesday 11/26, getting confirmed 11/28 and vin, and delivery scheduled 12/4.

Seems to me from surfing around, that Performance models seem to be getting offered to be delivered almost ASAP... almost like they make a lot of money on those or something ;). I am going to take it and do exactly what @Shygar is saying. There is a super charger within about 4 miles of my house at the local Mall.

My bmw lease is not up till Jan 19 of 19, but I had to pay the last payment anyway so... shrug. Im so excited right now about this car.. I havent been this excited since I got my first BMW about 12 years ago. Im planning on keeping this one for a long time.
 
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This thread is kinda a zombie, resurrected from last Spring but it is a top google result so I stumbled onto it while thinking about my own configuration. My 2 cents:

First, agree with those that Tesla gets loads of value from the hardware in each car regardless of whether the customer pays for the use of them or not. They shadow collect all that data including how you are driving in response and include that in their algorithms. They also get to keep manufacturing consistent-basically if i order a car today i simply chose colors, battery size and single or dual motor. There is some debate whether the P series is a software only upgrade and from what I've read it appears that at least some customers are getting P simply as software.

To say that the cameras/sensors only cost a little bit so 5k is too much is also a false economy. It is like saying that since Microsoft Office fits on a DVD they should sell it for $10. Tesla has invested tens of millions of dollars into self driving tech and need to recoup that cost somehow.

Which does open the door. There are lots of ways to get money for EAP including subscriptions, short term rental (for road trips) or having short term sales. I promise that they have discussed these and other ways to sell EAP and just this year they have started 14 day trials which include a short term sale price of $5500.

I disagree with those that say that it will never be discounted below 5k. That is a premium price for a feature in a <50k vehicle. I imagine that their Model 3 team wants to reduce that price while their Model S and Model X teams want to keep that margin where it has always been. As the Model 3 plows through their early adopters (us) the pickup rate on EAP will drop and Tesla will not want to leave cash on the table so will find ways to get cheaper EAP switched on in the cars. Personally I don't think they will sell features a la carte as that will create too much confusion for end users for car they already have a hard time describing accurately.

Cheers.
 
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