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Elon: No Discounts !

Discussion in 'Tesla Motors' started by ElectricTundra, Sep 28, 2016.

  1. ElectricTundra

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    Quite interesting tweet from Elon.

    Elon Musk on Twitter

    "If you can't explain to a customer who paid full price why another did not without getting embarrassed..."
     
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  2. 22522

    22522 Member

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    Some people have no shame... Maybe better, "Price motion begs negotiation. Negotiation adds no value and actually subtracts value by increasing costs. We want our customers to buy without hesitation, or consideration of waiting for a sale. Price motion increases ambiguity, uncertainty and attenuates word of mouth promoter behaviors that we so strongly rely upon."

    Nope, not better.
     
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  3. X Yes?

    X Yes? Member

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    Does anyone believe Elon was unaware of the heavy discounting on inventory cars? Another ridiculous tweet. Now that it appears he has come close to the number he needs for the quarter, he is disavowing the practice.

    It will be interesting to see how he handles a 4th quarter that is not meeting projections.
     
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  4. ecarfan

    ecarfan Well-Known Member

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    Inventory cars are "used" vehicles, they are not new. They have been driven many times by many different people on test drives, kids hav climbed in and out of them, and they have miles on the odometer. Essentially they are new cars that have been "driven off the lot", and it has always been true that once that happens the car is no longer "brand new" and depreciation is incurred.
     
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  5. AZ Desert Driver

    AZ Desert Driver Genesis - The Beginning - MS60D in its nest

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    My car was eligible to be accelerated into Sept - and this caused a burden to my schedule. I asked for, and got, a waiver of the $1200 Dest/Doc fee. So - is a Deal a Deal, or will this agreement be overturned by the new policy?
     
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  6. X Yes?

    X Yes? Member

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    At most dealerships, they are all inventory cars. Go to any other dealerships, request a test drive. You'll load up the kids into a brand "new car" that most closely meets your specs and put miles on it during a test drive. If each Tesla store had a dedicated "demo", there would have been minimal cars available for discount. Build to order demand at MSRP was not sufficient to meet the numbers needed in the third quarter.

    So the "surprising" fire sale was the result. Pandora will be tough to put back in the box, next quarter will be the one to watch, to measure demand.
     
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  7. number12

    number12 Member

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    Some new cars got delivery and dest fees waived.
     
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  8. ElectricTundra

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    #8 ElectricTundra, Sep 28, 2016
    Last edited: Sep 28, 2016
    Here's the reddit thread that started this. Weird situation : teslamotors

    BTW, I can easily believe Elon wasn't aware of the waiving of doc & dest fees. He's running three companies that are completely upending 2 major industries and he just blew up his buddy's $200 million satallite. He's amazingly minutia oriented but has a few other things on his mind.
     
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  9. number12

    number12 Member

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    Color me pissed.

    2 days before quarter? Great. Q3 is done. Ap2.0 will push q4 demand. This tweet is shady at best.

    Either Elon doesn't know about his company enough or he lying.

    Not sure which is worse.

    He is making people feel not bad for paying full price and saying it was a mistake that he did not know about?
     
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  10. X Yes?

    X Yes? Member

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    Very disingenuous for Elon to behave this way. This is a guy that sleeps at the end of the production line. We are supposed to believe he does not look at Tesla's website?
     
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  11. number12

    number12 Member

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    Are you also assuming he didn't know about people in 5 seat orders being offered 6 sweaters for half price upgrades?

    I literally did not care till that tweet. Elon's twitter is billion dollar liability. How can someone be so bad at twitter. I'm not inviting EM to my wedding anymore.
     
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  12. number12

    number12 Member

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    He doesn't even have to. Just 1 or 2 minions where that is their whole job. For a 30 billion dollar company I think that could be justified.

    Unless he emailed everyone and said sell as many cars as possible this quarter and do whatever is neccessary. THEN at end of quarter adds but don't discount...
     
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  13. X Yes?

    X Yes? Member

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    Absolutely. Any adults still left on the board of directors need to take away his twitter account.
     
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  14. supratachophobia

    supratachophobia Active Member

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    That's true, but a lot of those cars have/had less than 50 miles on the odometer. And yes, they have had sticky fingered kids climbing in and out. But a 10k discount.....?
     
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  15. Filter

    Filter Member

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    Although I want Tesla to succeed, and understand the motivations behind the discounting - I wish they had done something more transparent, like increasing the referral discount or reducing the destination fee for everyone. It would have felt more "fair" and been consistent with thier no haggle pricing.


    I'm still happy that they did well this quarter and people got good deals. I just feel this quarter undermined thier "fixed" price model. It seemed like they were slowly slipping into a traditional auto sales model...
     
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  16. supratachophobia

    supratachophobia Active Member

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    I'm actually ok with this. Their rational earlier in the year was to give the discount so that customers could allocate those funds ($1200) to their home charging solution, which seems like a genuine way to give a little extra "thank you".
     
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  17. X Yes?

    X Yes? Member

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    It was way more than waived doc fees & dest fees. These cars were advertised on Tesla's website at up to 10K off, some with less than 50 miles.
     
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  18. supratachophobia

    supratachophobia Active Member

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    I'd like to know what this does to resale values down the road when the Feb 2016 and Sept 2016 owners both go in to trade their cars in Feb 2017.
     
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  19. number12

    number12 Member

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    Once 2.0 hits those inventory cars will be even harder to move. They are still 80-100k cars. People who buy cars like that are not that price sensative. It's just an exactly similar car for cheaper. They didn't get to be able to buy said car making bad decisions.

    Once 2.0 comes out though... why would someone go inventory? Delivery times even for an X are down to 2-3 weeks sometimes. Deep Discounts are only way. Might as well do in q3 and get those stats.

    Hope it's not harder to sell my sept 27 delivery that I paid full price... oh wait.

    I actually appreciate and love a good hustle. That tweet doe. Come one EM. If he tweeted, "haha got you - 2.0 comes out tomorrow" I would have respected that more.
     
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  20. USMC_Mustang

    USMC_Mustang Member

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    Eccentricity is a charming, business-driving trait. It fosters innovation. Arrogance, on the other hand, accomplishes none of this. As a retired Marine, I was not EXPECTING any type of discount, but I always ask nevertheless, just in case. The type of "no" I received in response was disrespectful and uncalled for. A simple "Sorry, Tesla doesn't offer military discounts" would have been sufficient.
     
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  21. X Yes?

    X Yes? Member

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    That won't be pretty. It's a real problem for Tesla on their leases too. The lease residual that were already heavily subsidized, are now worth 10K less.
     
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