Elon's demand "secret weapon" ...what is it?

[Rheazombi]

I don't suppose anyone here has heard what Joss Whedon's next TV series will be about. A group of awkward 40somethings time travel in a Model X battling an evil cartel called AI and its dealers who are bent on keeping the world addicted to fossil fuels. Juliet Landau and Alexis Denisof are being considered for principal roles. Joss would really like to use Elon for the the voice of AI, which you never really get to see.

would watch this, no joke.

 

[Tasdevil]

It was good to see that Elon is very self aware that the model S is already an expensive car.
i expect a price drop to be the secret weapon.

 

[Lerxt]

My guess is that international production of vehicles will begin, allowing of course for more deliveries to be made in a shorter timeframe. Perhaps a RHD factory in Europe or Australia. A bit out of the US dealers reach.

My wish (being Australian) is that the soon to be disused Holden factory could be bought, retrofitted and provide a lot of employment. What got me thinking about this was Malcolm Turnbull's recent visit to the Tesla Factory in California. It's unlikely but in some ways it seems ideal.

There is zero chance of a factory in Australia.

The cost of labour is out of control. They are much more likely to build in China which is much closer to their key Asian markets.

I also don't think a price drop is on the cards given the financial results, it also is not a "weapon against the dealers", as he said.

 

[schonelucht]

I am liking the service as the service idea more and more. A single simple price that subscribes you to the full love and attention of Tesla. Includes warranty, insurance(!), supercharging, destination charging, connectivity, maintenance, OTA updates, repairs, loaner fleet, maybe even rental of model S from an out-of-state tesla store for 1 week for travelling purposes, whatever. $1500 and you are set for the next year/12k miles, repeat ad infinum. It would be a direct attack on the dealership model, it would make feel owning the car 'like an invisible glove', it would be a demand booster by taking away yet more barriers for hesitant owners and quite a few of these things Tesla already provides anyway.

 

[sandpiper]

There is zero chance of a factory in Australia.

The cost of labour is out of control. They are much more likely to build in China which is much closer to their key Asian markets.

I also don't think a price drop is on the cards given the financial results, it also is not a "weapon against the dealers", as he said.

China? I have serious doubts about that. How long do you think it would take before you wind up with an armload of "look-alike" cars? Telsa would be considered a status car there, and NOTHING inspires Chinese knock-offs like status.

Can China Conquer Detroit with its Cheap Car Clones

Ok... the cars would probably run on a bunch of lead-acid e-bike batteries, have 80km range and have two ipad knock-offs glued to the dash. But externally it would look the same.

Not only that, but status vehicles sell better in China if they're specifically NOT made in China.

 

[tomas]

I'd like to say "once and for all" but that doesn't exist in this forum. Reread transcript upthread. Before secret weapon comment, EM says no need for advertising or discounting. About the secret weapon, he says maybe begin to roll out this year. For each suggestion, plz put through this test: does it match his words? You can't start to role out new service model or a price cut. It's binary: offered or not. Could you imagine the demand impact if, say, California got a new service model? Plus he said no discounting. You could start to roll out advertising, but he said no advertising.

 

[Robert.Boston]

All Model Ss are still less than 4 years old, though a non-trivial number have logged more than 50k miles. Consequently, I think a revisiting of the extended warranty program along the lines @schoenlucht described meets @tomas's test.

 

[Lerxt]

China? I have serious doubts about that. How long do you think it would take before you wind up with an armload of "look-alike" cars? Telsa would be considered a status car there, and NOTHING inspires Chinese knock-offs like status.

Can China Conquer Detroit with its Cheap Car Clones

Ok... the cars would probably run on a bunch of lead-acid e-bike batteries, have 80km range and have two ipad knock-offs glued to the dash. But externally it would look the same.

Not only that, but status vehicles sell better in China if they're specifically NOT made in China.

They can copy it now if they want to. They are good at reverse engineering.

Further, in China, its not where its made so much as the brand status. BMW and AUDI manufacture in China and they are the most popular high status brands. The brand prestige is king, not where its made.

 

[flankspeed8]

It was good to see that Elon is very self aware that the model S is already an expensive car.
i expect a price drop to be the secret weapon.

This would make sense. Tech gets cheaper and better over time. Once supply meets demand I bet there will be some price cuts. Perhaps more stealthy at first but I have little doubt they will come even before the Model 3 is released.

 

[Robert.Boston]

Tesla has been nudging the price of the Model S up since 2012. Replacing my car with its exact configuration would cost me $12,000 more. Of course, the replacement model would include all the cool AutoPilot, but the Tech Package is only $500 higher.

Elon said "no discounts" and he's counting on high gross margins from the S/X to fund the Model 3 development and tooling, so I think his secret weapon is something that actually shifts the demand curve upward, rather than merely moving along the curve by lowering prices.

 

[Twiddler]

My guess (half joking, but only half): sell the vehicle as a mobile power source. Should be exempt from the dealership model, right? Not only is it mobile - it is HIGHLY mobile!

 

[Robert.Boston]

My guess (half joking, but only half): sell the vehicle as a mobile power source. Should be exempt from the dealership model, right? Not only is it mobile - it is HIGHLY mobile!

Clever, but it wouldn't escape dealer laws unless buyers are willing to forego registering their Model Ss as motor vehicles. And that would be one expensive battery....

 

[v12 to 12v]

I wonder if this could factor into the picture. It looks like things are moving along.

Tesla Roadster 3.0: Prototype Goes On 340 Mile Trip, Still Has Miles To Spare

Roadster Road Trip Update: San Jose to Los Angeles on a Single Charge | Tesla Motors

 

[tomas]

My guess (half joking, but only half): sell the vehicle as a mobile power source. Should be exempt from the dealership model, right? Not only is it mobile - it is HIGHLY mobile!

I tried this on my taxes but wouldn't meet reasonability test, still quacks like a duck for 10,000 miles per year. :wink:

 

[AudubonB]

There is zero chance of a factory in Australia.

The cost of labour is out of control. They are much more likely to build in China which is much closer to their key Asian markets.

I also don't think a price drop is on the cards given the financial results, it also is not a "weapon against the dealers", as he said.

Lerxt - Although this is off topic (and I've started a thread for this discussion here: Where are the world's idled automobile factories? ), I think it amusing to consider Australia's otherwise out of control labor costs.........versus those in the greater San Francisco, CALIFORNIA!!!! region (Fremont, of course).
Regardless, I do agree with your other point, which is that there are other locations in the Oceania/East Asia that are more centrally located than, for example, Alexandria, SA.

 

[Lerxt]

When I get a chance I look for it and post a link, but I saw a chart last week showing that Australias labour cost is up to 50% higher that the U.S.

 

[jerry33]

Clever, but it wouldn't escape dealer laws unless buyers are willing to forego registering their Model Ss as motor vehicles. And that would be one expensive battery....

They could also use it for furniture in their home theater--a real drive in experience.

 

[jhm]

I wonder if this could factor into the picture. It looks like things are moving along.

Tesla Roadster 3.0: Prototype Goes On 340 Mile Trip, Still Has Miles To Spare

Roadster Road Trip Update: San Jose to Los Angeles on a Single Charge | Tesla Motors

So there's your Model 3 right there. 400miles on 70kWh is 5.7mi/kWh! Strip this down to an affordable price, but the battery below to make room for a back seat, put 40kWh in it, and watch it go 240 miles on a single charge. Put 55kWh pack in it for 320 mile range and 70 kWh pack for 400 mile range. This would pretty much obliterate the concept of range anxiety, unless you make ICE vehicles. So something basic like that would be nice.

 

[v12 to 12v]

So there's your Model 3 right there. 400miles on 70kWh is 5.7mi/kWh! Strip this down to an affordable price, but the battery below to make room for a back seat, put 40kWh in it, and watch it go 240 miles on a single charge. Put 55kWh pack in it for 320 mile range and 70 kWh pack for 400 mile range. This would pretty much obliterate the concept of range anxiety, unless you make ICE vehicles. So something basic like that would be nice.

Combine that with the "invisible love" program and it's "game over".

 

[jhm]

Combine that with the "invisible love" program and it's "game over".

Hey, what's happening with invisible love?