Elon: No Discounts !

[somnambule]

Just that there is a lot of accusations and assumptions being made about who knew what and when, and whether this a cover-up or planned thing. I think it is really not very significant, and as others have said, its over now. Perhaps getting rid of all cars now is due to an upgrade coming, so people won't/can't complain they missed it, since they all got discounts. I am happy to wait a few weeks and perhaps understand better.

When the 60 was re-introduced recently, there were a lot of people with pending orders for 70s complaining that there was a strict policy of not allowing those orders to be downgraded to 60s. In a company that lays out such careful policies on pricing and order changes, I find it hard to believe that the recent discounts were the doing of a few rogue sales minions. That direction had to come from someone pretty high up in the company. Maybe it wasn't Elon but surely someone not too far removed from him in the hierarchy. That's why this recent statement from Elon looks so bad. I don't think it takes a lot of assumptions to reach that conclusion.

 

[brianman]

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.

I get your point but I think it's important to be careful about terminology here. By your definition (stretched a little), any car that has been "validated" (more than 0 miles) is "used".

Tesla's alignment of the definition of "used" (CPO) vs "new" (possibly with miles, but never titled) has implications for a bunch of things (taxation, rebates, insurance, etc.).

I think it's foolish to muddy the waters by repurposing "used" for whatever meaning you prefer.

 

[3Victoria]

First a CEO cannot not know every detail. He sets policy. That doesn't prevnt it from being misinterpreted. (This group also seems confused as to the meanings of new, used, demo, loaner ... ) I expect that words have been had with his VPs and managers. At face value he found out about it and took swift and transparent action. To ascribe other to his actions means one is guessing at other motives and that he is being non-transparent. That is ok if one has proof, otherwise it is innuendo.

 

[u00mem9]

Just wow.

 

[number12]

First a CEO cannot not know every detail. He sets policy. That doesn't prevnt it from being misinterpreted. (This group also seems confused as to the meanings of new, used, demo, loaner ... ) I expect that words have been had with his VPs and managers. At face value he found out about it and took swift and transparent action. To ascribe other to his actions means one is guessing at other motives and that he is being non-transparent. That is ok if one has proof, otherwise it is innuendo.

Koolaid is flowing strong here.

For tesla to be a disrupter in the automotive industry... Pricing practices have to been known by the CEO.

He said get it done at any costs and they did... so for that good, but him thinking discounts were not going to be part of it then we have bigger issues.

 

[bhzmark]

I was with a friend deciding to buy an S last night. Was going to make the decision ove rnight. The inventory S had few miles, but the old noseconeand was priced with a discount. Now today when we go to buy, no discount. Full price for a many months old car. They lost a sale for this quarter. And the potential new buyer is pissed and annoyed. And that car will likely sit and they will sell it even less than priced last night. Unlikely to sell at full price being months old wit hold nosecone. This was not implemented well.

 

[lolachampcar]

And C Christie did not know about the bridge closure.......
Not buying it.

 

[22522]

Maybe they want to turn off demand for a while.

 

[Pdub2015]

Seems like the ball is in Jon McNeill's court, as President of Global Sales and Service. I'm guessing, but could that be the same "Jon M" that sometimes posts here, solving owners' problems?

 

[3Victoria]

Strong dark force be within this thread :-/

 

[EV-lutioin]

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.

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.

I am going to err on the side of truth, I think heavy pressure to meet quotas caused some individuals to bend the rules.... of course I am basing my opinion on conjecture just like you

 

[987S4]

The acid test is if you can't explain to a customer who paid full price why another customer didn't without being embarrassed, then it is not right.

If Elon really felt it wasn't right, and wanted to make it up to customers who did pay full price, he should offer a discount on soft upgrades. Discounted service agreement, extended warranty, battery upgrades etc.

 

[3Victoria]

No.

 

[RedP85+]

Seriously after all the consistency that Elon has shown all this time, you are all so quick to throw him under the bus. So a few people got a discount. Maybe Elon knew what was going on but I will give him the benefit of doubt based on how consistent he has been so far. Still orders of magnitude better than any other car manufacturer and the shady dealer network that continues to show how corrupt the political system is when states continue to defend the ridiculous dealer laws.

 

[lolachampcar]

Benefit of the doubt.
D launch.

These two things no longer are in agreement. I'm now less inclined to believe what Elon says and much more inclined to watch what he does. Granted, this is one very small example but I refuse to say it did not happen.

 

[number12]

Benefit of the doubt.
D launch.

These two things no longer are in agreement. I'm now less inclined to believe what Elon says and much more inclined to watch what he does. Granted, this is one very small example but I refuse to say it did not happen.

I'm not familiar with all the upgrades that were not announced. What am I missing?

Facelift
AP
D
Battery up and down cycles
Cup holders?!

 

[RedP85+]

Benefit of the doubt.
D launch.

These two things no longer are in agreement. I'm now less inclined to believe what Elon says and much more inclined to watch what he does. Granted, this is one very small example but I refuse to say it did not happen.

That's the point he does do what he says. Sometimes the timeline is wrong but I have never see someone under so much scrutiny be so consistent. There is no evidence that he knew about the discounts only speculation.

 

[RubberToe]

Maybe I'm missing something here. Tesla boosts the largest battery size from 90 to 100. Many people switch their orders to 100 from 90. A bunch of 90's end up getting built and become inventory cars. Are the prices of these "no longer top of the line" cars to remain unchanged until sold?

Doesn't make sense, their value is going to be decreasing over time, especially cause Tesla upgrades various things so often.

I guess the better question would be: What is the official Tesla policy for pricing of inventory cars?

RT

 

[MorrisonHiker]

Maybe I'm missing something here. Tesla boosts the largest battery size from 90 to 100. Many people switch their orders to 100 from 90. A bunch of 90's end up getting built and become inventory cars. Are the prices of these "no longer top of the line" cars to remain unchanged until sold?

Doesn't make sense, their value is going to be decreasing over time, especially cause Tesla upgrades various things so often.

I guess the better question would be: What is the official Tesla policy for pricing of inventory cars?

RT

The vast majority of the discounted cars were 75s marked down to 60 prices. It's like the battery upgrade was free or almost free.

Technically, I guess the car cost Tesla the same amount to produce. They just lost out on the potential battery upgrade revenue.

 

[u00mem9]

Lots of trust here...I would like to hear from anyone who will actually be buying a car next month.

Clearly Elon will never, "NEVER"! allow discounts again now that he is aware of this tragic isolated activity (that was an f'n searchable field in the ev-cpo database!)

Let me know how soon you guys plan to pay msrp for a 75D...a car you could have bought last week for 10k off (new, not demoed or damaged, or replaced by the 100, etc.)