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

[drinkerofkoolaid]

I'm thinking a lifetime warranty on the battery. This would give owners the opportunity to
upgrade batteries or sell the vehicle back to Tesla after X number of years to
upgrade to the newest model, and would
guarantee a high resale value after 3-5, heck maybe 10 years.

 

[adiggs]

OK, going back to the quote, the secret weapon is separate to a weapon against the dealerships.

Weapon against the dealerships is where getting used car sales licenses, or getting into rental would allow easier access for customers.

Secret weapon for demand, I hope will be doing something about multi-unit dwellings, which is obviously an issue in some markets. Tesla has a patent for a L2 charging unit that can serve about 4 vehicles (I think), with the ability to apportion charge. Imagine a system that's:
- Multi-headed: 4 cables for each charger, install 1 for every group of parking spots you want to enable.
- Smart: allow settings for maximum total charge and apportionment.
- Uses local authentication: no Internet account management, just do it with swipe cards, NFC, RFID or something like that. Small number of users, Have something in the charger itself to allow an admin to enable a "key".
- Not-quite-metering: you only need 1 utility meter for parking if the charger itself can measure time of use and amount of electricity used by each "account". Cost(user) = Cost(all) x Usage(user)/Usage(all)
- Enable-a-cable: provide the unit at low cost and charge a fee to enable each cable.

The problem needs to be addressed, and Tesla wants to sell lots of cars, so why not work to help solve the problem and get Tesla branding everywhere?

Could the "weapon against the dealerships" be as simple as Tesla starting up it's own chain of used car stores so they're regulated under used car dealership laws instead of new car dealership laws? And then Tesla's used car lots choose to primarily or exclusively carry used Tesla's that have been traded in elsewhere? You still can't test drive a new Model S in Texas (or wherever), but you can test drive a previously owned one. If you as the buyer then elect to go home and purchase a new Tesla, that's your choice and not something under the control of the used car store. Clearly, they still won't be allowed to discuss the new Teslas at all.

I don't know the rules around used car dealerships well enough to know whether it could be something this simple, and yet would let Tesla break open accessibility to information and physical presence with the car.

 

[WarpedOne]

Once they use a dealer, they will be forced to use dealers in every state. It's 100% for sure that using any kind of third party to sell the cars isn't going to happen for a long, long time.

Stop thinking of classic dealers when you talk about tesla.
Tesla dealers won't be shops with truckloads of cars waiting for some merciful soul to pick them up.

Tesla cars are bought on the internet. Tesla dealership is thus like an internet cafe, full of computers and some gorgeous pics on the wall. Apple stores would work just fine.

 

[jerry33]

I think in the states that don't allow manufacturers to operate dealerships, they need to set up a coop structure where the dealership is owned by the customers,

That is still a dealer. Once there is even one dealer, every state will stop Tesla direct sales.

 

[gavine]

Could the "weapon against the dealerships" be as simple as Tesla starting up it's own chain of used car stores so they're regulated under used car dealership laws instead of new car dealership laws? And then Tesla's used car lots choose to primarily or exclusively carry used Tesla's that have been traded in elsewhere? You still can't test drive a new Model S in Texas (or wherever), but you can test drive a previously owned one. If you as the buyer then elect to go home and purchase a new Tesla, that's your choice and not something under the control of the used car store. Clearly, they still won't be allowed to discuss the new Teslas at all.

I don't know the rules around used car dealerships well enough to know whether it could be something this simple, and yet would let Tesla break open accessibility to information and physical presence with the car.

I'm liking this thought. Definitely has potential.

 

[anthony]

Any owners going to run out and buy a second MS because there are more places to procure one?

I didn't test drive, and I didn't have to. When I made my decision, it was before the Model S even existed, TM was going through their IPO, and I was cut off by a blue roadster in Stowe in June after having a conversation with my wife about how we need to put all the money we have into the hands of Mr. Musk.

I see no point in more brick and mortar. If they wanted that, bet they could have got a smokin deal on Radio Shack.

 

[cantdecide]

Imagine the following:
Tesla has car rental shops. You can rent any Tesla from them for $200/day. The rental shops look like a dealer, but they aren't, you can only rent from there.
However, each car is also for sale online from Tesla California, and gets cheaper by $200/day every day it is rented.

Effective result from a user perspective... Try before you buy at a rate that costs no more than buying outright.

Buy the car, rent the battery is a good idea... But not a dealer killer... Soon already knows how to finance this sot of thing... See the SolarCity model..

 

[Johan]

The secret weapon is a P85D+ Model S and X, with one 400+ hp motor front and one 400+ hp motor in the back for a total of more than 900 hp.

Source: Chrome P85D+, yes, PLUS!!

 

[anthony]

The p85d is just too slow, that's why more people are holding off on purchasing?

 

[Johan]

The p85d is just too slow, that's why more people are holding off on purchasing?

Yes much too slow

 

[anthony]

Johan, you must be from Detroit.

 

[ArtInCT]

In discussing this with a few knowlgeable Tesla fans and prospective owners, the one thing all could agree upon is a lifetime battery upgrade program. This would mitigate all objections to sales and give peace of mind. Net result would be a demand increase.

Also in those states that are objecting to Tesla owners showrooms, why does TM start Tesla Certified Pre Owned showrooms, just sell fine "used" Teslas?

 

[gjunky]

How about the thought of it just being the Model X. It is coming later this year and once on the road will push demand up way past the 20k mark.

 

[dalalsid]

Given the statement was 'for demand side generation' AND related to battling the dealer situation. I'll go with a massive worldwide dealership distribution agreement with Apple. Overnight, every Apple Store will become an authorized dealer, CarPlay included. Concurrently delivering massive distributed demand at the lowest automotive customer acquisition cost in history, and immediately establishing 'dealerships' in every state (and every country).

Maybe I'm thinking too big here, but I believe Elon has this level in mind along with multiple Tera factories and Li-Ion mixing with and giving way to SuperCapacitance. This and more is why he's trying to tell you the opportunity here is Applesque in size, reach, and value....

Amazon would be a better bet than Apple for that.

 

[Krugerrand]

Clue #1: Secret weapon will increase demand
Clue #2: Secret weapon will be an answer to the dealerships - answer in what way? In a way that made Elon giggle like Dr. Evil.

I'd think it has to do with something related to the customer experience at dealerships and the fact that the dealerships are currently arguing that the customer needs them to protect them from the big, bad OEM. Elon has already said Tesla was going to announce some sort of new and improved customer service/experience thingy. That thingy, I believe, is the secret weapon.

 

[The Blue Owl]

Clue #1: Secret weapon will increase demand
Clue #2: Secret weapon will be an answer to the dealerships - answer in what way? In a way that made Elon giggle like Dr. Evil.

I'd think it has to do with something related to the customer experience at dealerships and the fact that the dealerships are currently arguing that the customer needs them to protect them from the big, bad OEM. Elon has already said Tesla was going to announce some sort of new and improved customer service/experience thingy. That thingy, I believe, is the secret weapon.

I find this quite plausible.

 

[SebastianR]

Clue #1: Secret weapon will increase demand
Clue #2: Secret weapon will be an answer to the dealerships - answer in what way? In a way that made Elon giggle like Dr. Evil.

I'd think it has to do with something related to the customer experience at dealerships and the fact that the dealerships are currently arguing that the customer needs them to protect them from the big, bad OEM. Elon has already said Tesla was going to announce some sort of new and improved customer service/experience thingy. That thingy, I believe, is the secret weapon.

Agree.

Another crazy idea: If they would find a way to reclassify the Model S as a e.g. Spaceship (and not as a car) they could go around the Dealership restrictions. Maybe that could be done at federal level and would have the same impact as winning a federal court case without the headache and risk of such a court case?

 

[CHGolferJim]

In this morning's Barrons.com article, hard to see how the much maligned Trip Chowdhry could be more bullish:

"Maintaining estimates, overweight rating and Price Target of $385. Our Price Target of $385 is based on a Revenue multiple of 9x FY 2015 Revenue estimate of $6.3 Billion and 5x FY 2016 Revenue estimate of $10.3 Billion."

[Mods: please move, if needed, was reading multiple threads and misplaced this post.]

 

[Robert.Boston]

@bayrower, welcome to TMC, and thanks for the great idea. I've looked at most of the states' laws that prohibit Tesla from selling direct, and I'm nearly certain that your approach would work. In MA Tesla was able to meet the letter of the law merely by setting up a wholly-owned sub, Tesla Motors Massachusetts, but other states' statutes are a constructed so as not to allow such an easy workaround. I suspect the chief issue would be one of control, whether the co-op was just a shell for Tesla or whether it was actually independent.

 

[ItsNotAboutTheMoney]

Thank you for the kind comments on the coop idea.

I haven't read the actual language of the franchise laws but am fairly certain it works.
And it economically can be absolutely neutral to both tesla and the buyer.

I actually sent this idea to them a few weeks ago when Michigan bothered me.

If if it helps, I ran Corp Dev and Strategy at one of the top 3 largest tech companies.

It's a very interesting proposal, but I think those co-op rules would have to have very careful wording. Franchise laws prohibit manufacturer ownership and you'd risk legal challenges to independence. There's also a risk of carpetbagging, as happened with UK building societies, that drove de-mutualization.