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Discussion in 'Model S' started by montgom626, Apr 22, 2013.
Elon Musk: How Im Guaranteeing Tesla Model S Car - YouTube
Hi Montgom626, would it be possible to provide a brief summary of this in text? The reason I'm asking is because my work blocks YouTube access (and I'm always at work when browsing TMC ).
It is 9 min long so tough to summarize but he talks about loan program among other things. Can always watch it at home if you have Internet access there.
To add to DSM363 the video explained that the 40 kwh car was much like a hobbled horse, and with the 40 car you would not be able to do long distance trips. Which would lead into the owner of the 40 car to need a second vehicle, effectively removing the benefit of an electric car.
Yikes 9 minutes, okay thanks though for the replies. I'll try and catch it from home then.
Sampling of semi-quotes in real-time from my first viewing (so don't expect much):
- Important to introduce a financing product to broaden the marketplace.
- We're guaranteeing that the residual value of the Model S is no less than a Mercedes after 3 years.
- The number we're guaranteeing is just a floor.
- I'm standing behind that guarantee with all my assets, not just Tesla.
- (Why the Mercedes S class?) Daimler is a partner, investor, etc. We're providing the battery and powertrain for the B class. Many people consider the Mercedes S class to be the best in the premium market.
- We provide the calculator so you can check and uncheck which (benefits) apply to you in the calculation.
- (She asked a pointed question about the financing program and its impact on demand, and referenced the 20,000 per year number.) Elon's covered his hard goals (start production by __, profit margin, >= 20,000 units a year). In addition to referencing conf. call technical jargon ("forward looking statements, blah blah") he initially hinted and then explicitly reiterated that the 20,000 and other numbers were numbers to beat or exceed, rather than a cap.
- (You had to cancel the 40 kWh ...) We test drove the initial units and it just wasn't a good product. It felt hobbled, like a hobbled horse. You'd need another car to do long distance trips. You've got to buy two cars. Only 4% chose it ... the vast majority of customers ... voting with their wallet. Not comfortable making a product we don't 100% believe in.
- Number of announcements. Cadence of once every two weeks. Superchargers. Reengineering Tesla Service. The third I won't quite talk about but pretty cool; if you're driving a Model S it's right under your nose.
The best part about Musk's promise that he will personally guarantee the value of the Model S, is that he is more or less forced to stay on as CEO at Tesla. That is really good news as I believe in his abilities to make this company profitable.
Which is a load of cobblers, of course. Given that the majority of US households have multiple vehicles a limited-range BEV absolutely could make sense. It would certainly make sense for us.
What he actually means is that hey cut it because it wasn't selling well enough and they're better off waiting to grab those customers with the Gen 3.
You are correct sir!
Thank you for that.
This is less of a guarantee than it appears given that Elon is, at last report, highly leveraged and I suspect the Tesla price guarantee is a *junior* debt for him! However, his guarantee is valuable in the scenario where Tesla sinks but SolarCity and/or SpaceX take off (& pay back all his loans)
Thanks brianman I appreciate that!
/chuckle @ "fast majority". I'll fix the original post.